CN posts industry-low operating ratio of 60.7%

Canadian National reported an operating ratio of 60.7%, two points lower than a year ago, in a third quarter that saw net income rise by 21%to C$556 million while earnings per share of (C$1.19) increased 23% over reported third-quarter 2009 EPS, and by 27% over adjusted EPS.

Revenue grew by 15% to C$2,122 million in the third quarter; carloadings increased 18%; and revenue ton-miles rose 9%. Operating income increased by 21% to C$834 million.

Claude Mongeau, president and chief executive officer, said: “CN had very strong results, posting increased third-quarter net income driven by solid revenue growth, effective cost control, and improved productivity. Greater freight volumes in almost all markets reflected the continued recovery in North American and global economies.

“There are some encouraging signs,” said Mongeau. “During the first nine months of 2010, Canadian grain volumes approached a level not seen since the 1996/1997 Canadian bumper crop-year. Overseas intermodal traffic reached a record high for the nine-month 2010 period—up 25% from 2009. And Canadian coal traffic increased by a full 75% from the comparable nine-month period of 2009.”