Tuesday, January 24, 2012

CN quarterly earnings beat Street

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Canadian National Tuesday reported net earnings of C$592 million, or C$1.32 per share, up 18% from C$503 million or C$1.08 per share in the same quarter a year ago. Adjusted earnings of C$1.30 handily surpassed Wall Street consensus estimates of C$1.24. Revenue rose 12% C$2.38 billion, a record, that also surpassed Street estimates of C$2.30 billion.

CN noted that its operating ratio for the quarter was 64.7%, up 1.3 points from the fourth quarter of 2010.

Said CN President and CEO Claude Mongeau,"Solid operational and service performance helped CN deliver exceptional financial results for the fourth quarter and 2011 as a whole.

Mongeau said CN believes “the gradual improvement in the North American economy will continue in 2012." CN hopes to increase its profit by 10% in 2012, despite the weight of a pension expense of about $120 million this year.