Despite a drop in grain traffic, CN Rail has reported a $1.2 billion improvement in net income in 1996.
Net income for the year was $142 million, a major improvement from the previous year’s loss of $1.1 billion.
Last year’s results included one-time charges of $1.5 billion to cover the cost of debt reduction programs.
The $142 million in net income translates into an earning of $1.67 per share, compared with a loss of $13.49 per share in 1995.
In a press release, CN president and chief executive officer Paul Tellier called 1996 the best year in the history of the company.
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Revenues were up 1.5 percent to $4.16 billion, while operating expenses declined by more than $100 million to $3.55 billion, leaving gross operating income of $610 million.
After deducting special charges, mainly reductions in the labor force, net operating income for the year was $229 million. Earnings from continuing operations after deducting interest charges and income taxes totaled $124 million.
As for grain, traffic was down five percent in 1996 as CN shipped 229,000 carloads, compared with 250,000 in 1995. Revenue was $2,489 per car, or $570 million, down five percent from the previous year.
The company declined to say how many tonnes of prairie grain it hauled in 1996, citing commercial confidentiality.
Tellier said 1997 will be a pivotal year for CN, with the railway focusing efforts on improving customer service to fuel continued growth in revenues.
A railway spokesperson declined to give more details for the coming year, saying publicly traded companies such as CN are are not allowed to make public financial projections.
