(Bloomberg News circulated the following story on October 27.)
MONTREAL — Canadian National Railway Co., which has the highest profit margin among North American railways, said third-quarter earnings rose 18 percent, helped by acquisitions and higher shipments.
Net income climbed to C$346 million ($283 million), or C$1.19 a share, from C$294 million, or C$1.02, the company said in a statement. Revenue rose 21 percent to C$1.71 billion.
Canadian National benefited from the purchase of two U.S. ore-hauling railroads in May and the July acquisition of rights to operate the routes of BC Rail Ltd., which hauls forest products including lumber.
Chief Executive Hunter Harrison said in a statement that the results reflect “core business growth in a strong North American economy” and acquisitions, which added $148 million in revenue.
Total shipments rose 19 percent. Ore shipments more than doubled and forest products increased 20 percent, the company said.
Earnings before interest and taxes rose to 34.6 cents per dollar of sales from 32.1 cents, more than double the 13.6 cents that Union Pacific Corp., the largest railway, reported in its latest quarter.
The results exceeded C$1.13, the average of analysts surveyed by Thomson Financial.
Canadian National bought the Duluth, Missabe & Iron Range Railway and the Bessemer & Lake Erie Railroad from Blackstone Group LP’s Great Lakes Transportation LLC unit in a $380 million transaction. The Canadian company spent C$1 billion at auction for the rights to run BC Rail.
The shares rose 71 cents to C$64.57 yesterday. They have risen 18 percent this year.