Canadian National today reported net income in the first quarter of 2013 totaling C$555 million (about US$540.8 million), a decline of 28 percent from $755.2 million in the first quarter of 2012.
First quarter of 2013 profit results included an after-tax gain of $35.1 million, and first quarter 2012 included an after-tax gain of $245.6 million from the sale of rail line segments in the Toronto area to a public transit agency.
Quarterly revenue rose 5 percent compared to the same period in the previous year to $2.4 billion, while revenue ton-miles increased 3 percent year-over-year and carloadings improved 2 percent.
Revenue increased for petroleum and chemicals, intermodal, metals and minerals, forest products, automotive and grain and fertilizers, offsetting a slight revenue decline in coal.
“CN faced a number of operational challenges in the first quarter, including extreme cold and heavy snow in western Canada, which hampered operations, congested the network and constrained volume growth,” said Claude Mongeau, president and CEO of the Class I railroad, in a written statement.
“To improve network resilience, particularly given our expectation of continued strong volume growth, CN is undertaking several capacity enhancement projects in its Edmonton-Winnipeg corridor,” Mongeau continued. These and other productivity initiatives will increase CN’s planned 2013 capital spending to $1.9 billion, an increase of $97.4 million from its original 2013 plan, he added.