Canada National (CN) has reported its financial and operating results for the third quarter in 2020, reporting a revenue drop of 11% to C$*3.4bn; while operating income dropped to C$1.4bn in 2020 from C$1.6bn in Q3 2019. The decrease in revenues was mainly due to lower volumes across most commodity groups caused by the ongoing effects of the COVID-19 pandemic and lower applicable fuel surcharge rates, partly offset by freight rate increases as well as increased shipments of Canadian grain.
Revenues for the individuals sub-divisions are as following;
The company said there is solid operating momentum in Q3, suggesting a pivoting to recovery as they are bringing back resources in a methodical way while continuing to push on efficiencies. It will also continue to focus on permanent cost take-out initiatives. CN also stated there is a volume recovery in certain market underway with significant shift in business mix in Q3 2020. It expects a V-shaped recovery supported by ports business, lumber and automotive divisions. There has also been profitable growth in key markets such as in grain where it has seen 7 consecutive months of record export Canadian grain movement with potential for record crop; lumber/panels performed well due to improvement in home renovation activities and increased residential construction; there has been steady demand for thermal and metallurgical coal in Canadian coal; propane export volumes via Prince Rupert remain strong; international intermodal is also expected to make a V-shaped recovery at the ports and had a strong fall peak season; and finally, the domestic intermodal recorded growth in grocery and the temperature-controlled supply chain.
Source: CN
*C$ = $0.75/€0.63
