(Montreal) The Canadian National Railway Company (CN) posted record revenues for its second quarter, while its profits climbed 28% compared to last year.
Posted at 5:49 p.m.
The Montreal-based company said its revenue jumped $746 million, or 20%, from the same period last year to $4.34 billion in the quarter ended June 30.
Net profit jumped from 289 million to 1.33 billion compared to the second quarter of last year.
On an adjusted basis, earnings per share climbed 30% to $1.93 from $1.49 a year ago. Analysts on average had expected earnings of $1.75 per share, according to forecasts compiled by financial data firm Refinitiv.
CN maintained its outlook for 2022, and still targets a 15% to 20% increase in adjusted earnings per share for the full year. He had lowered his forecasts three months ago, when they were aiming for a target growth of 20%.
The country’s largest railway reported that its revenue growth was due to higher applicable fuel surcharge rates, freight rate increases and higher Canadian coal export volumes and American cereals.
Canadian National’s operating ratio, which expresses the carrier’s expenses as a percentage of its revenues, improved 2.3 percentage points from the same period last year to 59.3%. CN expects its operating ratio for the full year to be below 60%. For the first six months of the year, it was 62.8%.
“Our team keeps the network running smoothly, improving service levels for our customers, increasing speed and delivering strong financial results,” CN President and CEO Tracy Robinson said in a statement. by the way, the performance of the most recent quarter of “excellent”.
The rail carrier’s board of directors has given the go-ahead for a dividend of 73.25 cents per common share to be paid Sept. 29 to shareholders of record as of Sept. 8.