CN reports strong quarter

Canadian National (CN) and Kansas City Southern (KCS) has announced that they have entered into a definitive merger agreement.

CN announced double-digit percentage revenue growth in its Q2 figures released today. Its top line grew C$*487m to C$3,329m, representing a 17.1% jump year-over-year. Net income also received a corresponding boost, up 20.2% to C$1,031m for the quarter.

Luc Jobin, President and CEO, said: “Once again, CN delivered solid quarterly performance with strong volume growth across most commodity groups, building on the momentum started in the fourth quarter of 2016. The North American economic outlook continues to be positive, and we remain committed to delivering on our 2017 financial outlook. However, volume comparisons in the second half of the year will be more challenging, and the strengthening of the Canadian dollar will constitute a headwind.”

CN saw carload volume growth in Petroleum and Chemicals (+6%), Metals and Minerals (+32%), Grains and Fertilizers (+16%), Intermodal (+16%) and Automotive (+9%). Forest products (-2%) and coal (-3%) saw declines, but total carloads were up 14% year-over-year.

The results announced this quarter meant that CN turned over C$6,535m in revenue in the first half of 2017, 12.6% higher than in 2016. Net income was up 16.0% in the period.

Source: Canadian National