Canadian National 4Q net declines
Written by William C. Vantuono, Editor-in-ChiefCanadian National Tuesday reported its fourth-quarter net income of C$503 million, or C$1.08 per share, compared with C$582 million, or C$1.23 per share, in the fourth quarter of 2009. The results fell one Canadian cent shy of Wall Street analyst estimates of $1.09 per share.
Revenue rose 13% to C$2.12 billion, with gains in all commodity groups, including grain.
CN cited rising fuel costs, up 24%, as a factor affecting income. But it also predicted double-digit earnings growth in 2011 as the North American economic picture improves. CN also increased its dividend by 20%, to 32.5 Canadian cents per quarterly dividend, and announced a stock buyback plan totaling up to 16.5 million shares.
“We believe the North American economy will continue to recover in 2011, but at a slower pace than in 2010 and that global economic conditions will continue to improve,” said CN chief executive Claude Mongeau.
