CN’s 1ST-QUARTER RESULTS SLIP

CNÆS 1ST-QUARTER RESULTS SLIP    Canadian National reported that its first-quarter net income was Can $230 million ($146 million), down 16.4 percent from Can $275 million in the year-earlier period, which included gains from the sale of CN's 50-percent interest in the Detroit River Tunnel Co.
   Excluding the year-earlier gains, the net income for the first quarter of 2001 was about $202 million.
   Revenue for the most recent quarter was Can $1.51 billion ($961 million), up 8 percent, while operating income rose 5 percent to Can $406 million ($286 million). The Montreal-based railroad's operating ratio increased by 0.6 of a point to 73.1 percent.
   Operating expenses rose 9 percent, to Can $1.10 billion ($702 million), largely due to CN's integration of Wisconsin Central.
   Paul M. Tellier, CN's president and chief executive officer, said the company's improved results 'reflects more than the inclusion of WC revenues — CN's automotive, forest products and petroleum and chemical units all registered solid revenue gains.'
   Tellier called the first-quarter results were 'solid,' despite 'very tough conditions for our bulk commodity businesses.'
   Four of CN's seven business units saw double-digit gains in revenue: forest products up 33 percent to Can $325 million ($207 million); metals and minerals, up 26 percent to Can $122 million ($78 million); automotive, up 19 percent to Can $151 million ($96 million); and petroleum and chemicals, up 18 percent to Can $273 million ($174 million). Grain and fertilizers was off 16 percent to Can $269 million ($171 million); coal slipped 9 percent to Can $77 million ($49 million); and intermodal was off 1 percent to Can $235 million ($150 million).
   Carloadings rose 5 percent to 999,000 and freight revenue per carload increased 3 percent.