MONTREAL — CN reported its financial and operating results for the second quarter and first half ended June 30.
Second-quarter 2010 highlights:
— Net income and diluted earnings per share (EPS) increased by 38 percent from the year-earlier quarter to C$534 million and C$1.13
— Diluted EPS of C$1.13 increased by 49 per cent over adjusted diluted EPS of C$0.76 for the second quarter of 2009.
— Revenues rose 18 per cent to C$2,093 million, while carloadings increased 27 per cent and revenue ton-miles rose 15 per cent.
— Operating income increased 39 percent to C$813 million.
— Operating ratio improved by 6.1 points to 61.2 per cent.
— Six-month free cash flow totalled C$958 million, up from C$463 million generated during the comparable period of 2009.
Claude Mongeau, president and chief executive officer, said: “I am very pleased with our strong second-quarter 2010 earnings and free cash flow performance. We worked closely with our customers to help them grow their businesses and thereby increase our volumes, generating 27 per cent more carloads and 18 per cent more revenues in the quarter.
“CN’s outstanding results were anchored on careful planning – having the right resources in place at the right time – improved customer service, and our team’s strong execution of the CN Precision Railroading model. This performance allowed just a seven per cent increase in operating expenses and helped us to improve our operating ratio by more than six points to 61.2 per cent.”
Net income for the first-half of 2010 was C$1,045 million, or C$2.21 per diluted share, up from C$811 million, or C$1.72 per diluted share, for the comparable period of 2009.