SASKATOON – Severe winter weather took its toll on CN’s financial results during the first quarter of 1996.
The railway has reported a four percent drop in grain hauling revenue during the three-month period that ended March 31.
The company took in $143 million carrying grain and grain products in the quarter, compared with $149 million during the same period last year.
That contributed to a 20 percent decline in operating income during CN’s first full quarter of operations since it was privatized.
Grain ranked fifth in terms of revenue for the railway. Industrial products led the way at $206 million, followed by forest products at $196 million.
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CN reported after-tax income from continuing operations at $82 million, down from $103 million last year.
Special charges
However, excluding special charges and one-time gains, first quarter income from operations was $98 million, which is 27 percent higher than the $77 million for the same period in 1995.
That bottom line translated into an earning from continuing operations of 97 cents per share, compared with $1.29 during the first quarter a year ago.
CN president and chief executive officer Paul Tellier said in a press release that despite the reduced earnings, he was satisfied with company performance.
“I am pleased with these results considering that we operated through most of the first quarter during one of the harshest winters in history.”
He noted the company was able to reduce its operating expenses by $32 million or three percent, despite the unfavorable climatic conditions. The cost of labor and fringe benefits declined by seven percent, while material costs were three percent lower.
