Canadian National Railway Company (CN) saw its revenue decline slightly in the fourth quarter due to lower grain and container shipments, even as the company strengthened some of its operations.
The railway company reported revenue of 4.47 billion in the quarter ended December 31, a decrease of 2% from 4.54 billion in the same period a year earlier.
The Montreal company says its net profit rose 50% to $2.13 billion last quarter, up from $1.42 billion the year before, thanks to improvements in train speeds and dwell times.
On an adjusted basis, diluted earnings fell 4%, to $2.02 per share, from $2.10 per share. It slightly beat analysts’ expectations of $1.99 per share, according to financial markets data firm Refinitiv.
CN says lower container storage fees and fuel surcharge revenues were partly offset by higher freight rates and increased shipments of potash, liquid natural gas and refined petroleum products.
CN’s operating ratio – a measure of the railway’s efficiency that divides operating expenses by net sales – deteriorated 1.4 points to 59.3%.
CN’s board of directors approved a 7% increase to its quarterly cash dividend for 2024, effective from the first quarter of 2024.
