The company said the decline was due to “depressed North American and global economies driving lower volumes.”
CN said the results included a deferred income tax recovery of Can$28 million and costs of Can$2 million after-tax related to the acquisition of the principal rail lines of the Chicago-area short line the Elgin, Joliet and Eastern Railway.
The company noted that strengthening of the U.S. dollar affected the conversion of the company’s U.S.-dollar-denominated revenues and expenses, increasing second-quarter 2009 net income by Can$15 million.
“The second quarter of 2009 saw a continuation of significant weakness in most of our commodity groups as a result of the current recession in North America and difficult global economic conditions, with all groups but coal registering double-digit declines in carloadings,' said E. Hunter Harrison, president and chief executive officer. 'The biggest declines were in metals and minerals shipments, principally on account of a sharp reduction in short-haul iron ore movements in northern Minnesota, and in automotive and forest products traffic. Intermodal, grain and fertilizers, and petroleum and chemicals saw lesser declines. Coal was a bright spot, however, as a result of higher U.S. shipments resulting from our acquisition of the EJ&E.”
Harrison added: “We see some signs that several markets are stabilizing and we hope the economy will begin to recover in the second half of this year.”
