Canadian National Railway Company (TSE:CNR, Mkt cap 71.05B, P/E 20.39, Div/yield 0.38/1.62, EPS 4.54, Shares 763.99M) has reported record earnings for the last quarter of 2016.
Announcing its Q4 and year-end results on Tuesday, the rail operator said that net income for the quarter grew 8% to C$1,018m, while diluted earnings per share (EPS) increased 12% to C$1.32, compared with C$1.18 in the fourth quarter of 2015.
Revenues for the three-month period were up 2% to C$3,217m as the company moved higher volumes of Canadian grains and U.S. soybeans, refined petroleum products, finished vehicles and petroleum coke. Overall, carloadings increased 3% and revenue ton-miles grew 4%.
For the full fiscal year, CN recorded a 3% increase in net income to C$3,640m, with diluted EPS up 6% to C$4.67.
Carloadings and revenue ton-miles in 2016 both declined by 5% and there was a corresponding 5% decline in revenues to C$12,037m.
CN president and CEO Luc Jobin commented: "Despite facing difficult winter conditions in December, CN delivered very strong fourth-quarter results and throughout 2016 demonstrated once again its ability to perform well in a mixed economic environment.
"We saw weaker volumes during the year, but quickly adjusted as our dedicated team of railroaders maintained its focus on operational efficiency, while continuing to provide quality service to our customers and improve our safety performance."
In 2017, CN expects earnings per share to grow in the mid-single-digit range compared with adjusted diluted EPS of C$4.59 in 2016.
"Overall, the economy remains challenging, but we remain optimistic and expect to see moderate volume growth in 2017," Jobin said.
CN's board of directors has approved a 10% increase in its quarterly cash dividend, taking the annualized dividend to C$1.65 per common share. A quarterly dividend of C$0.4125 per share will be paid on March 31, 2017, to shareholders of record at the close of business on March 10, 2017.
Canadian National Railway Company is engaged in the rail and related transportation business. The Company's network of approximately 20,000 route miles of track spans Canada and mid-America, connecting approximately three coasts, including the Atlantic, the Pacific and the Gulf of Mexico. The Company's freight includes approximately seven commodity groups, such as petroleum and chemicals, metals and minerals, forest products, coal, grain and fertilizers, intermodal and automotive. The petroleum and chemicals commodity group comprises various commodities, including chemicals and plastics, refined petroleum products, natural gas liquids, crude oil and sulfur. The metals and minerals commodity group consists primarily of materials related to oil and gas development, steel, iron ore, non-ferrous base metals and ores, construction materials and machinery, and dimensional loads. The forest products commodity group includes various types of lumber, panels, paper, wood pulp and other fibers. More from Reuters »
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