SASKATOON – Thanks in large part to increased revenue from hauling grain, CN Rail’s bottom line improved by $227 million in the first three quarters of 1994.
Net income for the nine months ending Sept. 30 was $186 million, compared with a net loss of $41 million in the same period a year earlier.
The company’s rail-based revenue during the nine-month period improved by $238 million, with grain leading the way, according to a company press release.
Grain revenues were up by $99 million, followed by automotive and intermodal business up $66 million, coal and sulfur up $39 million and lumber up $32 million.
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CN president Paul Tellier attributed the improved performance to a strengthening North American economy, which resulted in increased volumes of most bulk commodities. Volumes increased by 8.5 percent while the cost of moving a gross tonne of cargo one kilometre declined by seven percent.
The company says that by the end of 1994, it will have reduced its workforce by 7,800 employees, representing about 70 percent of the target of 11,000 jobs to be cut by the end of 1995.
The amount of money that must be spent to generate $1 in revenue has been reduced to 89.5 cents from 96.3 cents.
