(Montreal) The Canadian National Railway Company posted a profit of 1.42 billion for its fourth quarter on Tuesday, up from 1.2 billion for the same period a year earlier.
The Montreal rail carrier earned $2.10 per share in the quarter ended Dec. 31, compared to $1.70 in the previous fourth quarter.
Canadian National’s revenues reached $4.54 billion, up 21% from $3.75 billion in the previous fourth quarter.
CN attributed the increase in revenue primarily to the fuel surcharge it charges its customers to adjust to higher fuel prices, as well as the positive translation impact of a weaker Canadian dollar, higher commodity rates, and higher volumes of Canadian grain moved.
Analysts on average had expected earnings of $2.08 per share, as well as revenue of $4.48 billion, according to forecasts compiled by financial data firm Refinitiv.
CN’s operating ratio, a key industry measure that expresses expenses as a percentage of revenue, was flat on an adjusted basis at 57.9%.
For the full fiscal year 2022, CN posted net income of $5.12 billion, up from $4.90 billion the previous year.
In its outlook for 2023, CN said it expects earnings per share growth of less than 10%, “due to a less favorable economic outlook”.
In addition, the company’s Board of Directors approved an 8% increase to CN’s quarterly cash dividend for 2023. The first payment of this new dividend of 79 cents per share will be paid March 31 to shareholders of record in dated March 10.