TELLIER: CN SET FOR “NEW ERA OF GROWTH”
TELLIER: CN SET FOR “NEW ERA OF GROWTH”
Canadian National is on the threshold of a “new era of growth,” said Paul M. Tellier, president and chief executive officer.
The railroad ” has the best balance sheet in the rail industry and a strong cash flow,” Tellier told at a meeting in Montreal Wednesday.
Since being privatized four years ago, revenues have jumped 33 percent from 1995 to 1999, while operating income more than tripled to $1.5 billion, Tellier said.
Net income nearly doubled to $746 million over the four-year period, and CN’s stock on the Toronto Stock Exchange gained 144 percent, he said.
“CN will continue its aggressive pursuit of new business and new efficiencies,” he said. This year CN management plans to achieve:
* A 4-percent increase in revenue.
* An operating ratio of 70 percent, or an improvement of two percentage points over 1999.
* A 90-percent on-time performance for carload and intermodal shipments, Tellier said.
CN is “fully committed” to the proposed merger with Burlington Northern Santa Fe, and will continue to challenge the Surface Transportation Board, which declared a 15-month moratorium on the proposed combine, Tellier said.
“Our objective is to secure a prompt STB review of our transaction, based on its own merits, so that the combination can proceed in 2001,” he said.