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CN Surges: Railway Lifts Full-Year Outlook on Strong Q2
26 Jul
Summary
- Canadian National Railway raised its full-year earnings forecast.
- Second-quarter revenue and profits exceeded expectations.
- Capacity expansion projects in Western Canada are proving effective.
Canadian National Railway (CN) has announced an improved financial outlook for the remainder of the year, driven by robust second-quarter results. The railway now anticipates earnings growth in the mid to high single-digit range, supported by low single-digit volume expansion.
In the second quarter, CN's operating income climbed 9% to US$1.26 billion, with revenue growing 11% to $3.37 billion. This performance led to an 11% increase in adjusted earnings per share, reaching $1.48. The railway noted that high fuel prices negatively impacted its operating ratio.
CN highlighted the positive contributions of its capacity expansion projects in Western Canada. These investments have enhanced network fluidity and velocity, enabling the handling of record grain and potash shipments, as well as increased volumes of refined petroleum products and other commodities. Wildfires in northern Ontario and British Columbia have not impacted CN's operations.
