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Canadian National Q1 profit up 12pc to US$650 million, revenue rises 12.5pc
CANADA's biggest railway, Montreal-based Canadian National, posted a 12 per cent first quarter year-on-year net profit increase to C$884 million (US$650 million), drawn on revenues of C$3.2 billion, up 12.5 per cent.
CN attributed the strong performance primarily to higher volumes of Canadian and US grain, frac sand, coal exports, overseas intermodal traffic, and finished vehicles.
Add to this were freight rate increases and higher applicable fuel surcharge rates, which were offset in part by the strength of the Canadian dollar vis-a-vis the US dollar and its impact on US-dollar-denominated revenues.
Freight volumes were up nine per cent to 1.37 million carloads and intermodal units, even as overall revenue per carload slipped one per cent to US$2,248.
Said CN president and CEO Luc Jobin: "We delivered record first-quarter volumes, including a 14 per cent increase in western Canadian grain tonnage moved over our network, despite a return to more demanding winter conditions versus last year.
"With a strong start in Q1 and an increased volume outlook for the rest of the year, I am pleased to announce an upward revision to our 2017 financial outlook," he said.
Looking ahead to the remainder of the year, Mr Jobin said CN is now projecting adjusted diluted EPS of between C$4.95 per share and C$5.10 per share for the full year compared with C$4.59 in 2016.
CN has also increased its 2017 capital programme from C$2.5 billion to C$2.6 billion, C$1.6 billion of which will be spent on track infrastructure improvements and maintenance.
The additional C$100 million will go toward the purchase of 22 high-horsepower locomotives and "other projects to support growth," the company said.
CN attributed the strong performance primarily to higher volumes of Canadian and US grain, frac sand, coal exports, overseas intermodal traffic, and finished vehicles.
Add to this were freight rate increases and higher applicable fuel surcharge rates, which were offset in part by the strength of the Canadian dollar vis-a-vis the US dollar and its impact on US-dollar-denominated revenues.
Freight volumes were up nine per cent to 1.37 million carloads and intermodal units, even as overall revenue per carload slipped one per cent to US$2,248.
Said CN president and CEO Luc Jobin: "We delivered record first-quarter volumes, including a 14 per cent increase in western Canadian grain tonnage moved over our network, despite a return to more demanding winter conditions versus last year.
"With a strong start in Q1 and an increased volume outlook for the rest of the year, I am pleased to announce an upward revision to our 2017 financial outlook," he said.
Looking ahead to the remainder of the year, Mr Jobin said CN is now projecting adjusted diluted EPS of between C$4.95 per share and C$5.10 per share for the full year compared with C$4.59 in 2016.
CN has also increased its 2017 capital programme from C$2.5 billion to C$2.6 billion, C$1.6 billion of which will be spent on track infrastructure improvements and maintenance.
The additional C$100 million will go toward the purchase of 22 high-horsepower locomotives and "other projects to support growth," the company said.
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