Canadian National Railway costs up, profit down

Canadian National Railway re-leased third quarter financial results last week, reporting net in-come of $958 million on revenue of $3.22 billion.

Net income was down from last year’s $972 million.

CN president Luc Jobin said demand for CN services is growing, especially in key business segments such as frack sand, intermodal, coal and Canadian grain.

Third quarter operating expenses rose 10 percent to $1.76 billion.

Jobin said CN is on track to exceed 2016 profit numbers despite rising costs.

“We are reaffirming our 2017 adjusted diluted earnings per share (EPS) outlook of $4.95 to $5.10, compared to last year’s adjusted diluted EPS of $4.59,” he said.

To meet growing demand for rail services, CN said it would spend an additional $100 million this year on infrastructure and equipment, boosting total annual spending on that sector to $2.7 billion.

CN also plans to boost its workforce in Western Canada.

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