Canada’s largest railway company posted record profits in the fourth quarter of 2016, thanks in part to higher volumes of Canadian grain and U.S. soybeans.
Canadian National Railway reported fourth quarter net income of $1.02 billion, or $1.32 per share, in the three-month period ending Dec. 31, 2016, which is up from $941 million, or $1.18 per share, a year earlier.
The company’s strong fourth quarter results pushed CN’s full-year net income up to $3.64 billion on revenues of $12.04 billion.
Increased handlings of refined petroleum products, automobiles and petroleum coke also boosted the company’s results.
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“Despite facing difficult winter conditions in December, CN delivered very strong fourth-quarter results and throughout 2016 demonstrated once again its ability to perform well in a mixed economic environment,” chief executive officer Luc Jobin said in a Jan. 25 news release.
“Overall, the economy remains challenging, but we remain optimistic and expect to see moderate volume growth in 2017.”
Demand for rail service from Canadian grain shippers was strong in the fourth quarter.
Total fourth quarter volumes in the company’s grain and fertilizer segment were listed at 177,000 car loads, up nine percent from the same period in 2015.
Fourth quarter revenue from the sector was listed at $647 million, up 14 percent from 2015.
Freight revenue per car load was $3.655, up five percent.
CN’s total revenues in 2016 were down five percent, affected by lower earnings in coal, metals, minerals, petroleum and chemicals.
