Canadian National Railway has posted a second quarter net profit before special items of US$486 million, up compared to $479 million for the corresponding prior year period.

Revenue rose one per cent to $2.03 billion. This comes despite floods in the west of the country which led to a slump in forest products and blockades of its Toronto-Montreal line in the east. However, strong auto, petroleum, chemicals, grain and fertiliser traffic helped boost coffers, a report by Canada's Gazette said.

CEO Hunter Harrison promises there will be a "solid comeback" in the second half, with a buoyant final quarter, due to favourable pricing and strong demand. This is expected to put CN back on the "great run" it has enjoyed since going public in 1995. Autos, petroleum, chemicals, fertilisers, grain and corn traffic will also continue strong, he said.

CN reported first half net profit (before special items) was $810 million compared to $841 million a year earlier. Revenue was up one per cent to $3.9 billion. Operating expense rose four per cent.