CN fourth-quarter net income was C$635 million, or 76 Canadian cents per diluted share, up from C$610 million, or 71 Canadian cents per diluted share, in the fourth quarter of 2012.The company’s fourth-quarter operating ratio rose by 1.2 points to 64.8%, CN said.
CN touted record fourth-quarter revenue up C$2.74 billion, up 8% from the fourth quarter of 2012. Revenue increased for petroleum and chemicals (up 22%) and intermodal (11%), among others, while coal revenue fell 9%.
For the full year, net income of C$2.6 billion, or C$3.09 per diluted share, fell short of 2012’s total net income of C$2.7 billion, though that income translated into earnings per diluted share of C$3.06 in 2012. CN’s operating ratio for the full year 2013 was 63.4%, compared with 62.9% in 2012.
CN President and CEO Claude Mongeau said, “CN’s agenda of Operational and Service Excellence delivered record volumes and revenues in 2013. Key operating and service metrics remained solid, and we continued to drive incremental improvement in our broad safety record. CN reduced its accident rate per million train-miles by 9% in 2013, the latest sign of long-term gains in safety. In the past 10 years, CN’s main line track accidents have declined by more than 50% despite increased freight volumes.
“CN sees good opportunities in 2014 in a number of markets, including intermodal, oil- and gas-related commodities, Canadian and U.S. grain, and commodities related to the recovery in the U.S. housing market. With continued supply chain collaboration and solid execution, the CN team is focused on safely and efficiently growing the company’s business at low incremental cost and at a pace faster than the overall economy."