Despite winter storms and track blockages, CN Rail has reported a 31 percent increase in profits for the first quarter of 1997 thanks to strong revenue from grain, auto and intermodal business.
The railway reported April 23 a profit of $128 million, compared to $98 million in the first quarter of 1996.
Total revenue was up six percent to $1.03 billion and expenses were up three percent to $879 million.
The railway carried a total of 606,000 carloads of products, up six percent from the same time last year.
Of that, grain accounted for 56,000 cars, down 2,000. But its revenue per carload of grain increased 11 percent to $2,750.
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That helped push total revenue from grain to $154 million, up seven percent from the same point last year.
The company also posted improved revenue for industrial products, coal, sulfur and fertilizers, intermodal and automotive. Revenue from forest products dropped.
CP Rail profit drops
Saskatoon newsroom
Canadian Pacific Railway has posted a first quarter profit of $62 million, a decrease of 32 percent from the same time last year.
In its April 24 report, the company blamed the poor financial performance on harsh winter weather.
Freight revenue from grain shipments was down 13 percent to $176 million. Three percent less grain was hauled during the period than in 1996.
Freight revenue in general was $885.8 million, down three percent because of weather related backlogs
Operating, maintenance and rental expenses were up, reflecting the leasing of more than 140 locomotives to reduce a backlog of cars and improve service.
The company expects to recover from the backlog by the third quarter of this year, citing expectations of strong movement in grain, coal, sulfur and fertilizers, so long as spring flooding does not cause too many problems.
It also expects costs to fall as its new fleet of high-power locomotives start onto the rails later this year.
Cargill income drops
MINNEAPOLIS, Minn. (Reuter) – Cargill Inc. said last week its income for the third quarter ended in February was $172 million (U.S.), while net income for the first nine months of fiscal 1997 was $658 million.
Both quarterly and year-to-date earnings are below last year’s record results but remain ahead of initial projections for the year, said Cargill, the world’s largest grain merchant.
The company reported net income of $747 million in the first nine months of fiscal 1996. Third quarter 1996 figures were not available.
