CN (NYSE: CNI) reported operating income of $1.21 billion for the second quarter ended June 30, up 5% from the previous quarter, while adjusted operating income was unchanged.
Revenues of $3.14 billion were off 1%, as revenue ton miles (RTMs) fell 1% in the quarter, the company said after the close of markets..
Diluted earnings per share improved 7% to $1.37, or 2% on an adjusted basis.
Operating ratio, or operating expenses as a percentage of revenues, was 61.7%, an improvement of 2.3 points. Operating ratio improved 0.5 points on an adjusted basis.
“Our team’s ability to be nimble and our focus on tight cost control allowed us to adjust our operations and deliver strong results despite a challenging external environment,” said President and Chief Executive Tracy Robinson, in a release. “We are working closely with customers, including those impacted by trade issues, to provide them with the services they need to win in their markets. We remain focused on powering the North American economy and delivering for shareholders.”
The Montreal-based company said persistent trade and tariff volatility led it to cut its full-year earnings forecast from January’s 10-15% to the mid to high single-digit range.
The company said it will still invest approximately $2.5 billion in its capital program.
CN is withdrawing its 2024-2026 financial outlook “due to the continued high level of macroeconomic uncertainty and volatility related to evolving trade and tariff policies.”
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