Canadian National Railway (CN) has reported that net income in the 2017 second quarter, which ended on June 30, 2017, was C$1,031 million, or C$1.36 per diluted share, compared with the 2016 second quarter net income.
"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,” stated Luc Jobin, CN president and CEO. "Our team of railroaders remained focused on balancing operational and service excellence while efficiently adjusting to the growing demand.”
Revenues for the second quarter of 2017 were up by 17 percent to a quarterly record of C$3,329 million, and carloadings increased by 14 percent in the quarter.
Operating expenses were up by 18 percent to C$1,834 million, and operating income increased 16 percent to C$1,495 million. The first quarter operating ratio was 55.1 percent, a 0.6-point increase over the 2016 second quarter's performance.
"The North American economic outlook continues to be positive, and we remain committed to delivering on our 2017 financial outlook," added Jobin. “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 reaffirmed its 2017 financial outlook, expecting its 2017 adjusted diluted earnings per share (EPS) to be approximately C$4.95 to C$5.10, compared to last year's adjusted diluted EPS of C$4.59.