(Montreal) The Canadian National Railway Company revised its outlook upwards on Tuesday, on the sidelines of the publication of third quarter results showing higher revenues and adjusted profits compared to last year, thanks to better volumes and rates.
Posted at 5:43 p.m.
Updated at 5:57 p.m.
The net profit of the Montreal carrier for the quarter ended September 30, however, was lower than a year ago, going from 1.69 billion to 1.46 billion.
Adjusted earnings for the most recent quarter were $1.46 billion, down from $1.08 billion a year ago — a figure that excludes several one-time items, including the receipt of $886 million in termination fees after the failure of its takeover of the American Kansas City Southern (KCS).
Revenue was $4.51 billion in the third quarter, down from $3.59 billion in the same period last year. Canadian National benefited notably from its fuel surcharge revenues, freight rate increases, and increases in coal export volumes and US grain shipments.
CN’s operating ratio, a key industry measure that expresses expenses as a percentage of revenue, was 57.2% in the most recent quarter, representing a 5.5 point improvement. percentage compared to 62.7% for the same period last year. On an adjusted basis, the improvement was 1.8 percentage points.
CN now expects its free cash flow to reach about $4.2 billion in 2022, up from its April forecast, which targeted the range between $3.7 billion and $4 billion.
The new outlook also calls for growth of approximately 25% in adjusted diluted earnings per share, compared to April forecasts for growth of between 15% and 20%.
“We remain focused on the disciplined execution of our integrated operating plan to maximize the effectiveness and efficiency of our remarkable tri-coastal network,” CN CEO Tracy Robinson said in a statement. .
“We are having a busy fourth quarter, with a strong start to the Canadian grain sector, and we have the necessary resources for the months ahead. »
The carrier’s board of directors has approved a quarterly dividend of 73.25 cents per share, which will be paid Dec. 29 to shareholders of record as of Dec. 8.