CANADIAN NATIONAL REPORTS 3% INCREASE IN INCOME
Canadian National said its first-quarter net income rose 3.1 percent to Can $202 million ($130.5 million), excluding a Can $73-million after-tax gain from the sale of CN's 50-percent interest in the Detroit River Tunnel Co.
Excluding the gain, net income was Can $275 million ($177.6 million), compared with Can $254 million in the year-earlier period, which excluded a Can $58-million after-tax gain relating to an investment.
Operating income for the first quarter of 2001 was flat at Can $385 million ($248.7 million), while CN's operating ratio rose 0.3 of a point to 72.5 percent. Revenue rose 2 percent to Can $1.40 billion ($902.9 million), while expenses also rose 2 percent to Can $1.01 billion ($654.2 million).
Paul M. Tellier, CN president and chief executive officer, noted the success of the railroad's intermodal performance. 'Traffic and revenue rose significantly in this intensely truck-competitive line of business. Market share gains from new service offerings continued to drive the domestic segment while our international intermodal business benefitted from market share gains and continued strength in the container trade. Rates also improved,' he said.
Intermodal revenue rose 13 percent to Can $237 million; petroleum and chemical revenue rose 5 percent to Can $231 million; metals and minerals, 2 percent to Can $97 million; and fertilizers, 2 percent to Can $321 million.
Automotive fell 14 percent to Can $127 million, Tellier said, due to weaker auto sales, temporary plant shutdowns and one-time gains in the year-earlier period. Coal revenue was flat at Can $85 million while forest products declined 2 percent to Can $245 million, due to weaker commodity prices for lumber, fewer housing starts and weaker demand for paper, he said.