(Bloomberg circulated the following story on July 20.)
WASHINGTON, D.C. — Canadian National Railway Co., which has the highest profit margins among North American railroads, said earnings in the second quarter rose 34 percent, boosted by higher grain shipments.
Net income climbed to C$326 million ($248.7 million), or C$1.13 a share, from C$244 million, or 85 Canadian cents, in the year-earlier period, Canadian National said in a statement. Revenue increased 14 percent to C$1.67 billion as grain revenue rose 45 percent. Profit before taxes and interest rose 32 percent to C$575 million, or 34.5 cents per dollar of sales.
Canadian National, the first major North American railway to report quarterly results, was 35 percent more efficient than second-ranked Norfolk Southern Corp. in the first quarter, based on a comparison of pretax profit margins. Canadian National, based in Montreal, kept 27.5 cents of each dollar of sales in the first quarter, compared with Norfolk Southern’s 20.4 cents.
Chief Executive Hunter Harrison said in a statement that the results “reflected a comeback in Canadian grain traffic, market share gains as a result of good service” and steps to raise rates and profitability.
Canadian National’s shipments rose 12 percent, boosted by an 18 percent rise in grain and 5 percent for automobiles as the North American economy expanded, the company said. Shipments of metals and minerals rose 98 percent, reflecting the May acquisition of Great Lakes Transportation LLC, which carries taconite, a mineral used for making steel.
The results exceeded Thomson Financial’s average estimate of 98 cents based on a survey of 19 analysts. The Montreal-based company’s shares rose as much as $1, or 1.7 percent, to C$57 in early trading, and climbed 55 cents yesterday. They’ve gained 2.4 percent this year.