Mark Szakonyi, Associate Editor | Apr 23, 2012 5:11PM EDT
Canadian National Railway profit in the first quarter jumped 16 percent year-over-year to $781.3 million, as the largest Canadian railroad saw double-digit revenue growth in six of its seven business units.
The company’s revenue rose 12.6 percent year-over-year to $2.3 billon on a 5 percent gain in volume, paralleling the pricing power shown by Union Pacific, Canadian Pacific Railway and CSX. Grain and fertilizer business was the only business unit to see a revenue decline, slipping 2 percent year-over-year.
“While CN benefited from a milder winter and improving economic conditions, our very solid first quarter results underscore that our strategy is working,” President and CEO Claude Mongeau said.
Coal revenue rose 18 percent to $168.3 million from the same period a year ago, despite volume being down 11 percent. Intermodal, along with metals and minerals, were the only business units to see double-digit increases in volume.
Revenue per carload rose 7 percent year-over-year to $1,796, while revenue per intermodal unit inched up 4 percent to $1,162 in the same period.
CN’s operating income rose 23 percent year-over-year to $799 million, while the railroad’s operating ratio improved 2.8 percentage points to 66.2 percent in the same period.
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