Canadian National Railway (CN) has reported that net income in the 2017 first quarter, which ended on March 31, 2017, was C$884 million, or C$1.16 per diluted share, compared with the 2016 first quarter net income.
"I am very proud of the solid response from our team of railroaders in accommodating the strong demand during the quarter,” stated Luc Jobin, CN president and CEO. “We delivered record first-quarter volumes, including a 14 per cent increase in Western Canadian grain tonnage moved over our network, despite a return to more demanding winter conditions versus last year.”
Revenues for the first quarter of 2017 were up by 8 percent to C$3,206 million, and carloadings increased by 9 percent in the quarter.
Operating expenses were up by 9 percent to C$1,903 million, and operating income increased 7 percent to C$1,303 million. The first quarter operating ratio was 59.4 percent, a 0.5-point improvement over the 2016 first quarter's performance.
"Our ongoing investments in people, equipment and infrastructure continue to position us well to leverage CN's industry-leading operational performance and superior customer service," added Jobin. "With a strong start in Q1 and an increased volume outlook for the rest of the year, I am pleased to announce an upward revision to our 2017 financial outlook.”
CN is raising its financial outlook, expecting its 2017 adjusted diluted EPS to be approximately C$4.95 to C$5.10. CN has increased its 2017 capital program by C$100 million to C$2.6 billion, with C$1.6 billion targeted toward track infrastructure. Additional capital investment will go toward the purchase of 22 high-horsepower locomotives and other projects.