The Canadian Press – Jul 20, 2021 / 9:12 PM | History: 340573
A man walks into the central station next to the CN headquarters in Montreal.
The Canadian National Railway Company nearly doubled its profits and revenues in its second quarter as the company began to recover from the COVID-19 pandemic.
The Montreal-based railroad earned $ 1.03 billion or $ 1.46 per share, up from $ 545 million or $ 0.77 per share in the first quarter of 2021. Excluding non-recurring items, adjusted earnings were $ 1.06 billion or $ 1.49 per share, compared to $ 988 million or $ 1.28 per share in the first quarter.
Revenue for the quarter ended June 30 was $ 3.60 billion, compared to $ 3.21 billion in the previous quarter.
The company also declared a dividend for its third quarter, of 61.5 cents per share, payable in September.
In 2020, CN was forced to build longer, heavier trains due to sharply declining rail volumes and customer demand during the COVID-19 pandemic. The company said on Tuesday that as the economy rebounded, it was able to revert to its standard operating plan and improve train speeds.
In late June, CN lost a critical bridge on its route to Vancouver due to a wildfire in the Lytton area of British Columbia. The railroad was able to restore service last week after a two-week outage, but COO Rob Reilly said Tuesday it will be a few more weeks before CN fully recovers from the traffic backlog. that resulted.
“It’s a rail segment that averages about 25 trains a day,” Reilly told analysts on a conference call. “We opened it, but I would also say it’s a very active situation in BC with the fires. So there are stops and starts there. “
The financial results come as the railroad awaits a decision from the US Surface Transportation Board on its voting trust application for Kansas City Southern, while its $ 33.6 billion takeover bid is analyzed by the regulator.
CN could be forced to pay the US railroad a penalty of US $ 1 billion if the voting trust is not approved. This is in addition to the US $ 700 million he agreed to pay KCS after he waived a purchase agreement by Calgary-based Canadian Pacific Railway Ltd.