(The Associated Press circulated the following on July 23.)
NEW YORK — Canadian National Railway Co. said Monday its second-quarter profit fell 29 percent as a result of flat revenue and lower income tax recoveries.
The company also cut its 2007 guidance, sending its shares down $1.72, or 3 percent, to $55.99 in aftermarket trading, after rising 62 cents to end the regular session at $57.71.
CN earned $516 million Canadian ($487.3 million), or $1.01 Canadian (95 cents) per share, compared with $729 million Canadian, or $1.35 Canadian per share, for the same quarter in 2006.
The recent quarter’s results included a deferred income tax recovery of $30 million Canadian ($28.3 million), or 6 cents Canadian per share (6 cents), while the 2006 quarter’s results included a deferred income tax recovery of $250 million Canadian, or 46 cents Canadian per share.
Excluding the deferred income tax recoveries, the company posted an adjusted profit of $486 million Canadian ($458.9 million), or 95 cents Canadian (90 cents) per share, compared with an adjusted profit of $479 million Canadian, or 89 cents Canadian per share, for the 2006 period.
Revenue rose 1.4 percent to $2.03 billion Canadian ($1.91 billion) from $2 billion Canadian in the year-ago quarter.
Analysts polled by Thomson Financial, on average, expected a profit of 84 cents per share on $1.98 billion in revenue.
Company officials said the recent quarter’s results were hurt by the shutdown of a rail line caused by a June flood, ongoing weakness in the forest products sector and two illegal blockades of the company’s Toronto to Montreal main line.