Canadian National Raises Outlook Amid Strong Volume Growth
Canadian National Railway (CNI) raised its full-year earnings guidance due to better-than-expected second-quarter performance, driven by strong volume growth and improved operating metrics. The railway reported a 9% increase in operating income to $1.26 billion and an 11% rise in revenue to $3.37 billion for the quarter. CEO Tracy Robinson highlighted solid execution of strategy and positive momentum across several key sectors including petroleum, chemicals, grain, domestic intermodal, and automotive. Despite high fuel prices negatively impacting its operating ratio by 2.1 points, CN achieved a 5% increase in volume measured by revenue-ton miles. The company also noted improved productivity metrics such as locomotive efficiency (+6%) and crew productivity (+13%). Capacity expansion projects in Western Canada are contributing to better fluidity and handling of record grain shipments. CN's outlook is neutral for metals, minerals, and coal traffic but negative for forest products, fertilizer, and international intermodal. The company confirmed that wildfires in northern Ontario and British Columbia have not disrupted operations.
Tickers: $CNI
Topics: operating performance railway revenue growth volume increase