(Reuters circulated the following article on April 20.)
VANCOUVER, British Columbia — Canadian National Railway posted a 21 percent higher first-quarter profit on Thursday, crediting stronger revenues and improvement in its operating ratio.
The company said it had net income of C$362 million, or 66 Canadian cents per diluted share, on revenue of C$1.85 billion, for the quarter ended in March.
That compared with a profit of C$299 million, or 52 Canadian cents per diluted share, and revenues of C$1.7 billion, in the same quarter a year earlier.
Chief Financial Officer Claude Mongeau said the railroad still expects earnings per share growth to be in the range of 10 percent to 15 percent for the year, although CN is keeping a close eye on the impact of the stronger Canadian dollar.
CN Rail said its operating ratio — the rail industry’s key measure of efficiency — dropped to 66.2 percent in the quarter, a 3 percentage point improvement over the same period a year ago.
The Montreal-based company, which operates tracks in both Canada and the United States, said rising fuel costs were largely responsible for increasing costs by 4 percent to C$1.2 billion.
“I’m delighted with the quarter. Another record. More of the same,” Chief Executive Hunter Harrison told analysts, citing higher train speeds and reduced dwell time for freight cars for part of the improved operating ratio.
There were revenue gains in all seven of CN’s commodity groups, with intermodal and coal seeing the largest increases, the company said.
The company said its total revenues were up 8 percent, but would have been up 11 percent had it not been for the strengthening of the Canadian dollar against the U.S. dollar.
($1=$1.14 Canadian)