MONTREAL, QUEBEC, CANADA — While reaffirming its 2024 growth outlook, Canadian National Railway (CN) revenue in the first quarter ended March 31 was C$4.25 billion ($3.11 billion), down C$64 million, or 1%, from C$4.31 billion a year ago.
Net income totaled C$1.1 billion, equal to C$1.72 per share on the common stock, down from C$1.22 billion, or C$1.82 per share, in the same period a year ago. Operating income was C$1.55 billion, down 7% from C$116 million a year ago. The below-average Canadian grain crop played a role in the numbers in the April 23 earnings report for CN, which serves Canada and the US Midwest and South.
Revenue from grain and fertilizers in the first quarter was C$860 million, a tick below C$861 million year-on-year. Carloads were 171,000, down 4% from 178,000 during the same period in 2023.
For the 2023-24 marketing year, the grain crop in Canada was below its three-year average, even when excluding the significantly lower 2021-22 crop year, CN noted, and the US grain crop was above its three-year average.
“Our team of railroaders delivered to plan in the first quarter and our scheduled operating model continued to enhance our service to customers,” said Tracy Robinson, president and chief executive officer, CN. “Looking forward, we are confident for 2024. We are seeing the expected improvements in the economy, and our CN-specific growth opportunities are materializing. We remain committed to delivering on our growth agenda and powering the economy.”
CN said it continues to assume that the 2024-25 grain crop in Canada will be in line with its three-year average, excluding the significantly lower 2021-22 crop year, and the US grain crop also will be in line with its three-year average.
CN reaffirmed its 2024 outlook and expects to deliver adjusted diluted EPS growth of approximately 10% and expects to invest approximately C$3.5 billion in its capital program, net of amounts reimbursed by customers. The company expects its return on invested capital to be within the targeted range of 15% to 17%. CN also continues to assume slightly positive North American industrial production in 2024.
Based in Montreal, Quebec, Canada, CN annually transports more than 300 million tonnes of natural resources, manufactured products and finished goods throughout North America. CN’s network connects Canada’s Eastern and Western coasts with the US South through an 18,800-mile rail network.
