CN Reports Q2 2011 Net Income

MONTREAL — CN reported its financial and operating results for the second quarter and first half ended June 30.

Second-quarter 2011 highlights

  • Net income increased from the year-earlier quarter to C$538 million, with diluted earnings per share (EPS) rising four per cent to C$1.18. The results included a net deferred income tax expense of C$40 million, or C$0.08 per diluted share, resulting from the enactment of state corporate income tax rate changes and other legislated state tax revisions.
  • Excluding the net deferred income tax expense, adjusted diluted EPS for the second quarter of 2011 rose to C$1.26 — an increase of 12 per cent over C$1.13 for the same quarter of 2010. (1)
  • Revenues for second-quarter 2011 rose eight per cent to C$2,260 million, while carloadings increased four per cent and revenue ton-miles increased five per cent.
  • Operating income increased eight per cent to C$874 million.
  • CN’s operating ratio was 61.3 per cent, essentially in line with the operating ratio of 61.2 per cent for second-quarter 2010.
  • Free cash flow for the first half of 2011 was C$823 million, compared with C$958 million for the same period of 2010.