CN’s 4th quarter profit up after special items

CNÆs 4th quarter profit up after special items Canadian National Railway Co. Tuesday reported fourth quarter net income of C$833 million ($850 million), up 66.9 percent from C$499 million in the same period in 2006.
   The company’s quarterly profit included a deferred income tax recovery of C$284 million ($290 million), as well as after-tax gains of C$64 million ($66 million) from the sale-and-leaseback of the Central Station Complex (CSC) in Montreal and C$41 million ($42 million) from the sale of shares in English, Welsh and Scottish Railway. Excluding these items, CN’s adjusted net income in the fourth quarter was C$444 million ($454 million).
   CN’s operating income in the fourth quarter declined 2.6 percent to C$736 million ($752 million) while revenue slipped 3 percent to C$1.94 billion ($1.98 billion).
   For the full year, CN reported net income of C$2.16 billion ($2.20 billion), a 3.4 percent gain from C$2.09 billion in 2006. The railroad’s annual operating income dropped 5.1 percent to C$2.88 billion ($2.6 billion). Revenue was down 0.4 percent to C$7.90 billion ($8.06 billion).
   'CN faced strong headwinds in 2007 but we turned in a solid performance for both the quarter and the year,” said E. Hunter Harrison, CN’s president and chief executive officer. “The major challenges were weak housing markets in the U.S., the continuing strength of the Canadian dollar that affected our U.S. dollar-denominated revenues, a strike in the first quarter, and a number of weather-related issues, particularly in western Canada.”
   Harrison said 2008 will be challenging in some areas, but the year also offers the company opportunities for growth, in particular increased intermodal traffic at the new Prince Rupert container terminal.