Adjusted diluted 2Q-2012 earnings per share, excluding a net income tax expense of six Canadian cents per share, rose 19% to C$1.50. The tax expense resulted from enactment of higher provincial income tax rates, partly offset by an income tax recovery from the recapitalization of a foreign investment.
Second-quarter revenue rose 13% to C$2,543 million, on an 8% increase in revenue ton-miles and an 8% and a 4% increase in carloadings. Operating income increased 13% to C$985 million.
The operating ratio was 61.3%, unchanged from a year earlier.
Net income for first-half 2012 was C$1.4 billion, or C$3.18 per diluted share, compared with net income of C$1.2 billion, or C$2.63 per diluted share, for the comparable period of 2011. Adjusted net income for the first six months of 2012 was C$1.18 billion, with adjusted EPS increasing 24% to C$2.67.
CN said performance so far this year and assumption of continued positive economic conditions have prompted an upward revision of the company's 2012 outlook. CN now expects up to 15% growth in EPS for the year.