CN Reports Q4 2010 Income

MONTREAL — CN reported its financial and operating results for the fourth quarter and year ended Dec. 31, 2010.

Fourth-quarter and full-year 2010 highlights

— Net income for the final quarter of 2010 was C$503 million, or C$1.08 per diluted share, versus fourth-quarter 2009 net income of C$582 million or C$1.23 per diluted share.

— Q4-2010 net income increased by 19 per cent over comparable adjusted 2009 net income of C$424 million, with Q4-2010 diluted earnings per share (EPS) up 20 per cent over adjusted diluted EPS of C$0.90 for the final quarter of 2009.

— Operating income for the fourth quarter of 2010 increased 19 per cent to C$774 million.

— Fourth-quarter revenues increased 12 per cent to C$2,117 million on strong volume growth.

— Fourth-quarter operating ratio improved to 63.4 per cent from 65.3 per cent for the 2009 final quarter, based on solid operating efficiencies.

— Full-year 2010 free cash flow increased to C$1,122 million from C$790 million for 2009.