UPDATE: Canadian National Railway (CNI) Posts Q1 EPS of C$1.22; Sees More Capital Spending
(Updated - April 22, 2013 3:44 PM EDT)
Canadian National Railway Co (NYSE: CNI) reported Q1 EPS of $1.22, in-line with the analyst estimate of $1.22. Revenue for the quarter came in at $2.47 billion versus the consensus estimate of $2.49 billion.
Profit compares with C$775 million, or C$1.75 per share, reported in the same period last year.
Operating ratio fell 2.2 points to 68.4 percent. The ratio measures costs as a percentage of revenue, meaning a lower number is better.
"CN faced a number of operational challenges in the first quarter, including extreme cold and heavy snow in Western Canada, which hampered operations, congested the network and constrained volume growth," commented CEO Claude Mongeau. "To improve network resilience, particularly given our expectation of continued strong volume growth, CN is undertaking several capacity enhancement projects in its Edmonton-Winnipeg corridor. These and other productivity initiatives will increase CN's planned 2013 capital spending to C$2 billion, an increase of C$100 million over our original 2013 plan."
The five per cent rise in first-quarter revenues was mainly attributable to freight rate increases and higher freight volumes, due in part to growth in the North American and Asian economies, partly offset by operational challenges that constrained volumes.
CN is maintaining the 2013 financial outlook it issued on Jan. 22, 2013, except for its revised plan to invest approximately C$2 billion in capital programs in 2013, compared with the previous plan to invest C$1.9 billion. Approximately C$1.1 billion of the total expenditure will be targeted on track infrastructure to maintain a safe and fluid railway network. In addition, the Company will invest in projects to support a number of productivity and growth initiatives.
For earnings history and earnings-related data on Canadian National Railway Co (CNI) click here.
Canadian National Railway Co (NYSE: CNI) reported Q1 EPS of $1.22, in-line with the analyst estimate of $1.22. Revenue for the quarter came in at $2.47 billion versus the consensus estimate of $2.49 billion.
Profit compares with C$775 million, or C$1.75 per share, reported in the same period last year.
Operating ratio fell 2.2 points to 68.4 percent. The ratio measures costs as a percentage of revenue, meaning a lower number is better.
"CN faced a number of operational challenges in the first quarter, including extreme cold and heavy snow in Western Canada, which hampered operations, congested the network and constrained volume growth," commented CEO Claude Mongeau. "To improve network resilience, particularly given our expectation of continued strong volume growth, CN is undertaking several capacity enhancement projects in its Edmonton-Winnipeg corridor. These and other productivity initiatives will increase CN's planned 2013 capital spending to C$2 billion, an increase of C$100 million over our original 2013 plan."
The five per cent rise in first-quarter revenues was mainly attributable to freight rate increases and higher freight volumes, due in part to growth in the North American and Asian economies, partly offset by operational challenges that constrained volumes.
CN is maintaining the 2013 financial outlook it issued on Jan. 22, 2013, except for its revised plan to invest approximately C$2 billion in capital programs in 2013, compared with the previous plan to invest C$1.9 billion. Approximately C$1.1 billion of the total expenditure will be targeted on track infrastructure to maintain a safe and fluid railway network. In addition, the Company will invest in projects to support a number of productivity and growth initiatives.
For earnings history and earnings-related data on Canadian National Railway Co (CNI) click here.