The Canadian National Railway (CN) has posted a first quarter 60.3 per cent decline in profit to C$555 million (US$540.47 million) year on year, drawn on revenues of C$2.46 billion, up five per cent, according to the Shipping Gazette.
Lower profits were attributed to the bonanza first quarter of 2012, when a C$252 million after-tax gain was realised from the sale of rail line in the Toronto area to a public transit agency.
Revenue increases were attributed to a rise in freight rates as well as higher freight volumes, due in part to growth in the North American and Asian economies, and yet partly offset by operational challenges that constrained volumes.
Revenue ton-miles rose three per cent and car loadings grew two per cent. Operating income declined two per cent to C$780 million.
Said CN president and CEO Claude Mongeau: "CN faced a number of operational challenges in the first quarter, including extreme cold and heavy snow in Western Canada, which hampered operations, congested the network and constrained volume growth. We've turned the corner since then, improving train velocity and reducing freight car dwell times in yards across the network to restore the service level expected by our customers."