Rail

Canadian National Posts 6% Profit Gain on Strong Freight Demand

Canadian National Railway increased third-quarter profit 6% as elevated shipments of grain, energy and automotive cargo bolstered freight revenue. Elevated fuel costs and a technology write-down compressed margins. The Montreal-based carrier maintained its full-year earnings guidance, indicating results track toward the upper end of forecasts. Adjusted diluted earnings rose 18% to $1.55 per share, surpassing analyst expectations of $1.50. Freight revenue climbed 15%, with grain and fertilizer revenue up 19% to $661 million, petroleum and chemicals revenue increasing 17% to $716 million, and automotive revenue jumping 31% to $203 million. Grain traffic expanded 12% while automotive traffic surged 20%. Fuel expenses jumped to $474 million from $299 million, partially offset by a 2% fuel efficiency improvement. CN took an $84 million technology impairment and recorded $10 million in merger-related advisory costs.