CN Rail reports lower first quarter profit as winter weather bites into bottom line
Net income for Q1 down by 16 per cent from last year, company says
Canadian National Railway Co. is cutting its 2018 financial outlook as it reports lower first-quarter income and revenue due to severe winter weather and lower network "resiliency."
The company says it now expects to post 2018 adjusted diluted earnings per share of $5.10 to $5.25, down from its previous target of $5.25 to $5.40. Last year's number was $4.99.
CN Rail reported first-quarter net income fell by 16 per cent from the same period last year to $741 million and earnings per share slipped by 14 per cent to $1.00.
Revenue for the first quarter was $3.194 billion, down $12 million, as carloadings increased by three per cent and the operating ratio, a measure of efficiency where a lower number is better, rose six points to 67.8 per cent.
The results were in line with analyst expectations as reported by Thomson Reuters.
Last week, rival Canadian Pacific Railway Ltd. also blamed winter weather in part for lower earnings of $348 million in the first three months of the year, down from $431 million a year ago, despite a four per cent increase in revenue to $1.66 billion.