CN SEES DOUBLE-DIGIT GROWTH IN 4TH-QUARTER, YEAR-END EARNINGS
Canadian National said its net income grew 25 percent in the fourth quarter, to Can $296 million ($184.1 million), and by more than 10 percent for 2001, to Can $1.04 billion ($646.7 million) for 2001.
The Montreal-based railroad anticipates its growth to slow to from 5 to 10 percent in 2002, said Claude Mongeau, chief financial officer, in an analysts presentation Wednesday. CN expects only marginal growth in the United States and Canada, as economic conditions level off.
CN's operating income for the fourth quarter rose 18 percent to Can $521 million ($234.0 million), while its operating ratio improved 2.2 points to 66.1 percent. Fourth-quarter revenue rose 10 percent to Can $1.54 billion ($955.7 million), while operating expenses rose 7 percent to Can $1.02 billion ($631.8 million).
CN's included results from Wisconsin Central Transportation Co., which CN acquired effective Oct. 9. The acquisition contributed Can $17 million ($10.6 million) in net income, Can $43 million ($26.7 million) in operating income and Can $129 million ($80.2 million) in revenue to CN's fourth-quarter and full-year results.
'The purchase of WC, which benefited our forest products and metals and minerals revenues in particular, was accretive to earnings from day one,' said Paul M. Tellier, CN's president and chief executive officer.
Six of CN's seven business units registered revenue gains in the fourth quarter: metal and minerals, up 38 percent; forest products, up 24 percent; coal, 10 percent; petroleum and chemicals, 9 percent; automotive, 4 percent; and grain and fertilizers, 2 percent. Intermodal revenues were down 1 percent.
CN's full year operating income rose 8 percent to Can $1.78 billion ($1.11 billion), on revenue of Can $5.65 billion ($3.51 billion), up 4 percent. The full-year figures exclude an after-tax workforce adjustment charge of $62 million in the second quarter.