CN (CNI) reported its financial and operating results for the second quarter ended June 30. All numbers are in Canadian dollars.

“The CN team delivered record second-quarter results, and we remain optimistic on CN's volume prospects in the second half of the year while maintaining our vigilance on costs,” said JJ Ruest, president and chief executive officer of CN. “Our focus on delivering profitable growth and advanced technologies to modernize our scheduled railroading model is expected to continue driving long-term value creation for our shareholders.”

Net income was $1.36 billion versus $1.31 billion last year.

CN said:

  • It attained record second-quarter diluted EPS, as well as record quarterly revenues, operating income and adjusted diluted EPS. 
  • Revenues increased by nine percent to $3,959 million.
  • Diluted EPS increased by six percent to $1.88 and adjusted diluted EPS increased by 15 per cent to $1.73. 
  • Operating ratio of 57.5 per cent, an improvement of 0.7 points.
  • Operating income increased by 11 per cent to $1,682 million.

CN intends to deliver 2019 adjusted diluted EPS growth in the low double-digit range this year versus last year's adjusted diluted EPS of C$5.50 and continues to assume mid single-digit volume growth in 2019 in terms of revenue ton miles (RTMs).

Revenues for the second quarter were $3.96 billion, an increase of $328 million or nine percent, when compared with the same period in 2018. 

Operating expenses for the second quarter increased by eight per cent to $2,277 million, mainly driven by the inclusion of TransX, the negative translation impact of a weaker Canadian dollar, and higher costs resulting from increased volumes of traffic.