MONTREAL, QUEBEC, CANADA — CN reported adjusted net income for the third quarter ended Sept. 30 increased 11% to C$1.102 billion, as the company put infrastructure improvements into service.
“Our dedicated engineering team delivered, putting more than 80 percent of our infrastructure expansion projects fully in service at a time when the network was under heavy traffic," said JJ Ruest, president and chief executive officer of CN. “Our 2018 resource investments are substantially advanced, giving our railroaders the tools they need to provide industry-leading service to all of our customers now and for the long haul.
“We continue to see strong opportunities ahead, across multiple existing rail commodities and new supply chain services. The balance of our expansion projects remains on track for completion before winter and our one team is energized to execute our proven operating model as we meet the growing economic needs of our customers.”
The railroad reported that operating income increased by 8% to C$1.492 billion while revenues increased 14% to C$3.688 billion.
Revenue was up in several areas including grain and fertilizer, which increased 15% to $76 million.
CN attributed its revenue increase to “higher applicable fuel surcharge rates, freight rate increases, the positive translation impact of a weaker Canadian dollar, as well as higher volumes.”
The company said it still aims to have adjusted diluted earnings per share (EPS) in the range of C$5.30 to C$5.45 in 2018 compared to last year’s EPS of C$4.99. It now assumes revenue ton-miles growth will be 5%.
For the 2017-18 crop year, CN is assuming grain crops in Canada and the U.S. were above their respective three-year averages. It also assumes that the 2018-19 crops will be in line with their respective three-year averages.