Canadian National Railway (CN) increased its full-year earnings outlook, forecasting mid to high single-digit growth against Q2 operating income of $1.26 billion.
The brief
CN's Q2 revenue grew 11% to $3.37 billion, and adjusted earnings per share rose 11% to $1.48. This improvement was driven by a 5% increase in revenue-ton miles, capacity investments in Western Canada, and improved productivity in locomotive (up 6%) and crew (up 13%). CN expects positive volume for petroleum, chemicals, grain, domestic intermodal, and automotive traffic for the rest of the year.
Takeaway
Shippers using CN should anticipate strong service levels on key corridors, particularly in Western Canada, due to ongoing capacity investments and operational efficiencies, while monitoring for potential shifts in international intermodal demand.
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https://www.freightwaves.com/news/cn-boosts-outlook-as-volume-growth-tops-expectations