The Canadian National Railway has posted a 12.2 per cent year-on-year first quarter profit increase to C$623 million (US$564.5 million), drawn on revenues of C$2.69 billion, up nine per cent, according to Shipping Gazette.
Revenues mostly rose on the back of a weaker Canadian dollar on US dollar denominated billings and rate increases as well as higher volumes due to strong energy markets, CN said in a press release.
The severe winter drove up first-quarter operating expenses 11 per cent to C$1.9 billion, especially in the form of higher purchased services and material costs.
"It was the harshest winter I have been involved with and I have been at CN for 20 years," said CEO Claude Mongeau. "The winter took its toll on network capacity, but recovery is well underway, with key metrics returning to pre-winter levels."
The Montreal company also held to its forecast for 2014, saying it still expected to deliver double-digit earnings per share growth over the C$3.06 a share it earned last year.
Petroleum and chemicals revenue soared 23 per cent to C$568 million, intermodal revenue climbed 12 per cent to C$621 million, metals and minerals revenue jumped seven per cent to C$308 million, coal revenue rose seven per cent to C$182 million, and grain and fertiliser revenue increased six per cent to C$431 million. Forest products revenue was flat at C$339 million and automotive revenue declined four per cent to $129 million.
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