CN BOOSTS 3RD-QUARTER EARNINGS 11%

CN BOOSTS 3RD-QUARTER EARNINGS 11%    Canadian National said its third-quarter net income rose 11 percent to Can $240 million ($152.7 million).
   Including a non-recurring deferred income tax recovery of Can $12 million ($7.6 million), and the railroad's net income was Can $252 million ($160.3 million).
   Operating income for the quarter rose 6 percent to Can $430 million ($273.6 million), while the railroad's operating revenue improved 1.9 percent points to 67.5 percent. Third-quarter revenue was flat at Can $1.33 billion ($843.1 million). Carloadings fell 4 percent to 915,000 while freight revenue per carload rose 5 percent.
   “In a challenging economic environment, we delivered double-digit gains in earnings and earnings per share,” said Paul M. Tellier, president and chief executive officer. “We stayed focused, reining in expenses as revenues softened toward the end of the quarter as a result of slowing activity and decreased consumer demand.”
   Four of CN's seven business units posted revenue gains in the third quarter: metal and minerals, up 16 percent; forest products, up 3 percent; intermodal, 1 percent; and coal, 1 percent.
   For the first nine months of 2001, net income was Can $682 million ($434.0 million), up 6.2 percent. The 2001 results excludes a Can $122-million deferred income tax recovery resulting from lower Canadian corporate tax rates. Including the non-recurring items, nine-month net income was Can $744 million ($473.4 million).
   Operating income for the nine months was Can $1.26 billion ($801.1 million), while the company's operating ratio improved 0.7 points to 69.4 percent.
   Revenue was Can $4.12 billion ($1.82 billion), up 1 percent. Carloadings fell 1 percent to 2.81 million, while freight revenue per carload improve 4 percent.