CN and CP report revenues up in 2019, but NS slightly down
Canadian National (CN) and Canadian Pacific (CP), both Canadian Class 1 freight railways, reported increases in revenue in their 2019 full year results, while United States Class 1 Norfolk Southern (NS) reported a 1 per cent decline compared with 2018, which it said was due to a 5 per cent drop in volumes.
Canadian National
CN’s 2019 revenues rose by 4 per cent to £8.54 billion, which it attributes predominately to freight rate increases, the inclusion of the TransX road haulage business in the intermodal commodity group, the positive impact of a weak Canadian dollar, and higher petroleum crude, natural gas and refined petroleum products in the first three quarters.
These gains were partly offset by lower volumes of a broad range of forest products, reduced US thermal coal exports via the US Gulf Coast and a fall in frac sand volumes.
JJ Ruest, CN’s president and CEO, said: “We remain focused on executing our strategy of long-term sustainable growth at low incremental cost.”
Canadian Pacific
CP meanwhile reported a 7 per cent increase in revenue to achieve a record £4.46 billion in 2019. It also recorded an operating ratio of 59.9 per cent, while its diluted earnings per share increased by 29 per cent, which was another record.
Keith Creel, CP president and CEO, said: “CP’s strong operational performance and commitment to controlling costs enabled the railway to be successful despite headwinds to our bulk franchise,” says.
He added that by leveraging unique growth opportunities and applying its precision railroading operating model, CP “led the industry in volume growth for the second year in a row and delivered on its guidance”.
Norfolk Southern
By contrast, NS reported operating revenue of £8.56 billion, which was 1 per cent down, as overall volumes fell by 5 per cent, reflecting a decline in all major commodity categories.
Elsewhere, the railway reduced its operating ratio to 64.7 per cent, (a record for a full year), which helped to manage the headwinds of the fall in volumes.
Income from railway operations was £3.03 billion, which was a 1 per cent increase year-on-year and an all-time record.
James A Squires, Norfolk Southern Chairman, President and CEO, said: “With efficiency-related cost savings gaining steam in the third quarter and increasing in the fourth quarter, we achieved a record full-year operating ratio while also producing all-time best delivery performance for customers.”
For more information visit www.cn.ca www.cpr.ca www.nscorp.com
3rd February 2020
