Canadian National today reported its profit in the second quarter of 2013 was C$717 million (about US$693.6 million), rising 13.6 percent from $610.4 million in the same quarter last year.
The second quarter results included an extra $12.6 million resulting from a gain from a non-monetary transaction with another railway, which was partly offset by the effect of the enactment of higher provincial corporate income tax rates, the Class I railroad said in a written statement.
Revenue in the second quarter was $2.6 billion, rising 5 percent year-over-year. The increase was driven by a 5 percent improvement in revenue ton-miles and a 2 percent increase in carloadings. Revenue increased for petroleum and chemicals by 18 percent, grain and fertilizers by 5 percent, metals and minerals by 4 percent, forest products by 4 percent and intermodal by 3 percent, offsetting a 3 percent decline in automotive revenue. Coal revenue was flat.
Operating ratio in the second quarter improved by 0.4 points year-over-year to 60.9 percent.
“We executed strongly during the second quarter, with service and operating metrics on a steady improvement trend,” said Claude Mongeau, president and CEO of CN. “Looking forward, despite slower volume growth than anticipated, the CN team will maintain a keen focus on growing revenues faster than the overall economy, as well as on tightly managing costs to meet our full-year financial outlook.”
CN is maintaining its plan to invest about C$2 billion (US$1.9 billion) in capital programs in 2013.