1 1 T T I 1 81 i n Pgiam A Brief History Of The Railroad Industry Railroads were first built in the US in the 19th century, rapidly and everywhere: by 1916, there was a peak of 254,037 miles of rail, and 1,200 railroad carriers, which collectively employed 1.7 million workers in the US. However by the 1920s - 1930s, automobiles became popular as road construction was subsidized, and in the 1950s - 1960s the rise of jet airlines both competed with (and won against) passenger rail in the US, leaving just frei ...

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- Tracy Robinson, President and Chief Executive Officer, CN MONTREAL, July 31, 2024 (GLOBE NEWSWIRE) -- CN (TSX: CNR) (NYSE: CNI) today published its 2024-2025 Grain Plan, which builds on the Company's successful operational improvements and strategic capital investments from the previous grain season. CN is focused on developing and preparing our people for the upcoming grain season. A major priority for this year, is ongoing employee engagement, recruiting and training as we continue to manage a challengi ...

MONTREAL, July 31, 2024 (GLOBE NEWSWIRE) -- CN (TSX: CNR) (NYSE: CNI) today published its 2024-2025 Grain Plan, which builds on the Company's successful operational improvements and strategic capital investments from the previous grain season. "We are confident that we have the right approach and resources in place to move this year's Canadian grain crop efficiently. We continue to lean into our scheduled railroading model and making sure that our ongoing capital investments position us for success again th ...

Revenues for the second quarter of 2024 were $3.16 billion (C$4.33 billion), which lagged the Zacks Consensus Estimate of $3.23 billion. However, this reflects an increase of 4.75% year over year, driven by higher volumes. The operating income for the second quarter of 2024 decreased by 3% when compared to the same period in 2023. The operating ratio, defined as operating expenses as a percentage of revenues, was 64% in the second quarter of 2024 compared with 60.6% in the second quarter of 2023. Liquidity ...

Core Viewpoint - Canadian National Railway Company (CNI) continues to demonstrate resilience and strategic growth despite facing significant headwinds, including labor uncertainties and operational disruptions, which have led to a revision of its full-year EPS growth guidance [23][33]. Financial Performance - In Q2 2024, CNI reported a 7% increase in revenues, driven by stronger pricing, higher volumes, and favorable exchange rates, although this was partially offset by lower fuel surcharges due to decreased oil prices [32][34]. - The company achieved record volumes through the Vancouver corridor, with local service commitment reaching 94%, up from 91% in the previous year [7][34]. - Adjusted diluted EPS for Q2 was $1.84, reflecting a 5% increase compared to the previous year, despite higher costs impacting the operating ratio, which rose by 160 basis points to 62.2% [17][34]. Operational Insights - CNI's operational efficiency remains solid, particularly in the East and South regions, although challenges in the Western region due to maintenance work impacted overall performance [6][8]. - The company is negotiating with labor unions to mitigate potential work stoppages, which have already affected international intermodal volumes as customers rerouted vessels away from Canadian ports [9][10]. Strategic Initiatives - CNI is focusing on growth initiatives, including expanding its petroleum and fuels business and enhancing its international portfolio [6][34]. - The company is leveraging opportunities in energy, agriculture, and international intermodal sectors, with intermodal revenues up 6% and a 19% increase in international traffic through Western gateways [26][29]. Future Outlook - The full-year EPS growth guidance has been revised to mid- to high single-digit growth, down from previous expectations of double-digit growth [11][34]. - Despite current challenges, CNI aims for a 10% to 15% compound annual growth rate from 2024 to 2026, indicating confidence in its long-term financial outlook [17][34].

Core Points - CN has committed $1.5 million through a three-year partnership with Hockey Helps the Homeless (HHTH) to raise awareness and financial support for homelessness in Canada starting from the 2024-2025 hockey season [1][6] - CN will also serve as the Presenting Sponsor of HHTH Montreal's 19th annual hockey tournament on March 28, 2025, aimed at raising funds to combat homelessness in the city [2][4] - HHTH has provided over 2.7 million meals and 1.8 million nights in beds across Canada in 2023-2024, with CN's support expected to expand its reach and deepen existing market support [3][4] Company and Industry Insights - Hockey Helps the Homeless Canada has granted over $28 million since its inception in 1996, with 100% of net proceeds staying local to the tournament city [4] - The organization partners with over 60 local homeless support agencies across Canada, engaging community participants, NHL players, and Olympians in its initiatives [4][6] - CN operates a nearly 20,000-mile rail network, transporting over 300 million tons of goods annually, contributing to sustainable trade and community prosperity since 1919 [8]

Financial Data and Key Metrics Changes - The company reported a 7% year-over-year increase in revenues, driven by stronger pricing, higher volume, and favorable foreign exchange, despite a lower fuel surcharge [45][80] - Adjusted operating ratio (OR) increased by 160 basis points to 62.2%, primarily due to higher costs compared to Q1, although volumes were strong until late May [79][153] - Q2 diluted EPS was down 1% year-over-year but up 5% on an adjusted basis after removing the impact of asset losses [26] Business Line Data and Key Metrics Changes - Intermodal revenues grew by 6% with a 13% increase in overall revenue ton miles (RTMs), reflecting a 19% increase in international traffic but a 1% decrease in domestic traffic [46] - Grain and fertilizer revenues and RTMs each rose by 7%, driven by a 24% increase in Canadian grain shipments, partially offset by lower export potash and US corn shipments [21] - Metals & Minerals revenues increased by 6% on a 12% rise in RTMs, reflecting a 36% increase in frac sand shipments, while steel product shipments softened due to market conditions [22] Market Data and Key Metrics Changes - The Western region experienced significant growth, particularly in intermodal and bulk, with Q2 marking the highest average daily gross ton miles (GTMs) through the Vancouver corridor in the company's history [14] - The company noted a mixed outlook for the US crop, with good overall conditions but soft export demand [49] - The automotive sector saw a 9% revenue increase and a 12% rise in RTMs, mainly due to long-haul imports through Vancouver [149] Company Strategy and Development Direction - The company is focused on CN-specific growth initiatives, including enhancing service reliability for international intermodal and leveraging strategic benefits from the Rupert option in train plan design [20][136] - The company aims to balance resources by offering permanent transfers from the Eastern to Western regions to meet demand [41] - The management is optimistic about the future, particularly regarding new business initiatives and customer service improvements [5][136] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the labor situation in Canada but expressed confidence in resolving these issues soon [5][10] - The company expects to see a return to normal operating levels and improved profitability in the second half of the year, assuming no further labor disruptions [112][155] - The management remains committed to addressing structural issues related to duty and rest period rules that have impacted labor productivity [63][101] Other Important Information - The company generated approximately $1.5 billion in free cash flow year-to-date, about $200 million lower than the previous year due to lower net cash from operating activities and higher capital expenditures [80] - The company has repurchased close to 10 million shares for nearly $1.7 billion as of the end of June under its current share repurchase program [154] Q&A Session Summary Question: What is the impact of the labor situation on the company's operations? - Management indicated that the labor situation has led to a reduction in international volumes as customers rerouted shipments to US ports, resulting in unproductive labor costs [138][110] Question: How does the company plan to manage capacity in the Vancouver corridor? - The company is focused on improving productivity and ensuring that capacity is not oversold, while also utilizing alternative corridors like Rupert for growth [117][118] Question: What are the expectations for earnings growth in 2025 and 2026? - Management expressed confidence in achieving the targeted CAGR of 10% to 15% over three years, contingent on economic recovery and successful execution of growth initiatives [103][102]

For the quarter ended June 2024, Canadian National (CNI) reported revenue of $3.16 billion, up 4.8% over the same period last year. EPS came in at $1.35, compared to $1.31 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $3.23 billion, representing a surprise of -2.04%. The company delivered an EPS surprise of -4.26%, with the consensus EPS estimate being $1.41. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Stre ...

Canadian National (CNI) came out with quarterly earnings of $1.35 per share, missing the Zacks Consensus Estimate of $1.41 per share. This compares to earnings of $1.31 per share a year ago. These figures are adjusted for non-recurring items. Over the last four quarters, the company has surpassed consensus EPS estimates two times. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on ...