CN’s Robinson: ‘Our Team of Railroaders Delivered to Plan’

“Looking forward, we are confident for 2024," said CN President and CEO Tracy Robinson. (CN photo)

“Our team of railroaders delivered to plan in the first quarter and our scheduled operating model continued to enhance our service to customers,” CN President and CEO Tracy Robinson said during the Class I’s first-quarter 2024 financial and operating announcement on April 23. “Looking forward, we are confident for 2024. We are seeing the expected improvements in the economy, and our CN-specific growth opportunities are materializing. We remain committed to delivering on our growth agenda and powering the economy.”

Among CN’s first-quarter 2024 results:

• Revenues of C$4.249 billion, down C$64 million or 1% from first-quarter 2023’s C$4.313 billion.
• Revenue ton miles (RTMs) remained flat at 59.749 million.
• Operating income of C$1.546 billion, a decrease of C$116 million, or 7%.
• Operating ratio, defined as operating expenses as a percentage of revenues, of 63.6%, an increase of 2.1 points.
• Diluted earnings per share (EPS) of C$1.72, a decrease of 5%.

Reaffirming 2024 and Long-Term Financial Outlook

“CN reaffirms its 2024 outlook and expects to deliver adjusted diluted EPS growth of approximately 10% and expects to invest approximately C$3.5 billion in its capital program, net of amounts reimbursed by customers,” the Class I reported. CN also expects return on invested capital (ROIC) to be within the targeted range of 15%-17%.

CN says it reiterates its longer-term financial perspective and continues to target compounded annual diluted EPS growth in the range of 10%-15% over the 2024-2026 period “driven by growing volumes more than the economy, pricing above rail inflation and incrementally improving efficiency, all of which assumes a supportive economy.”

For more details, visit the CN Investors webpage.