Railroads these days are enjoying good “fracking” business—no pun intended—and Wall Street has taken notice.
Canadian National earned net income of C$631 million in this year’s second quarter, or C$1.44 per diluted share, up from C$538 million, or C$1.18 per diluted share, in the second quarter of 2011.
CN late Monday, April 23, posted strong first quarter results, prompting the railroad to revise its outlook for the year upward.
Canadian National has announced a new rail interchange service with CSX Transportation (CSX) over the Chicago gateway. Prior to this agreement, CN and CSX exchanged containers in Chicago only by truck.
CN said Tuesday it would sell two rail segments in the Greater Toronto Area to Metrolinx for C$310.5 million.
CN Thursday said it plans to acquire 65 new high-horsepower locomotives, augmenting that purchase with one of 96 second-hand high-horsepower locomotives that will be upgraded, or 161 locomotives in all.
Canadian National said Friday it plans to invest C$1.75 billion in 2012 to maintain and upgrade its railway network, support growth and productivity initiatives, and continue to provide customers with a high level of service.
Wi-Tronix, LLC said Tuesday it has secured a contract with Canadian National wherein CN will install Wi-Tronix systems on its locomotive fleet, including new locomotive purchases and retrofitting of its existing fleet with Wi-PU’s.
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.
Writing a new chapter in an extraordinary success story.
Paul Tellier took Canadian National public with stunning success, Hunter Harrison’s Precision Railroading model took CN to performance levels that led many investment analysts to crown CN as the world’s finest freight railroad, and now Claude Mongeau, in command since Jan. 1, is taking steps to ensure that CN stays that way.