CN results improve with economy

(Montreal) Canadian National Railways (CN) reported sharply higher second-quarter earnings and revenue on Tuesday as it began to recover from the COVID-19 pandemic.


The Montreal Railroad Company reported earnings of 1.03 billion, or $1.46 per share, in the fourth quarter, compared to earnings of 545 million, or 77 cents per share, for the same period a year earlier.

Excluding non-recurring items, adjusted earnings were $1.06 billion, or $1.49 per share, compared to $908 million, or $1.28 per share, in the same period last year.

Revenue for the fourth quarter ended June 30 was $3.60 billion, down from $3.21 billion a year earlier.

Analysts had expected adjusted average earnings per share of $1.49, plus revenue of $3.66 billion, according to forecasts compiled by financial data firm Refinitiv.

The operating ratio, a measure of efficiency that expresses expenses as a percentage of revenue, was 61.6%, an improvement of 13.9 points from 75.5% over the second quarter of last year. However, it increased on an adjusted basis by 1.2 percentage points, from 60.4% to 61.6%.

In 2020, CN took extraordinary measures, including using longer and heavier trains, due to the sharp drop in volumes due to the pandemic. Now that the economy has recovered from COVID-19, the carrier is back to its usual operating plan, which relies on faster trains.

Canadian National’s board of directors has approved a quarterly dividend of 61.5 cents per share, which will be paid September 29 to shareholders of record effective September 8.

See also  10 things to know on Monday

The release of CN’s quarterly earnings comes as the carrier awaits a decision from the US Road Transportation Board, which must decide whether to allow a voting fund for Kansas City Southern while its $33.6 billion acquisition proposal is investigated by regulators. organizational. the body.

CN could face a $1 billion fine if the voting fund is not approved, on top of the $700 million it agreed to pay to KCS after the latter turned its back on its earlier consolidation deal with Canadian Pacific Rail. (CP).

Leave a Reply

Your email address will not be published. Required fields are marked *