[170212.EN.LAN] CN & CPR 2011 Profit Up

1)     Canadian National 2011 profit increases 17pc to US$2.45 billion

THE Canadian National Railway (CN) has announced a 17 per cent year-on-year profit increase in 2011 to C$2.46 billion (US$2.45 billion) drawn on an 8.7 per cent more revenue to C$9.03 billion.

The company also announced fourth quarter profits of C$592 million, representing an increase of 18 per cent.

The North American railway operator registered fourth quarter net income of C$503 million on revenue of C$2.38 billion, up 12 per cent against the fourth quarter of 2010.

Operating income for the fourth quarter of 2011 rose by eight per cent to C$839 million. Total operating expenses for the fourth quarter were up by 15 per cent to C$1,538 million.

For the whole of 2011, all commodity groups saw revenue increases: metals and minerals (17 per cent), intermodal (14 per cent), grain and fertilisers (seven per cent), petroleum and chemicals (seven per cent), forest products (seven per cent), automotive (six per cent), and coal (three per cent). Revenue ton-miles for the year rose by five per cent from 2010, while rail freight revenue per revenue ton-mile increased four per cent.

CN chief executive Claude Mongeau said the company achieved record revenues and carloadings. "Although the economic recovery may be affected by global uncertainty, CN believes the gradual improvement in the North American economy will continue in 2012. Despite significant headwinds from additional pension expense of about C$120 million in 2012, CN is aiming to achieve a growth of up to 10 per cent in diluted earnings per share."

The results included a 2011 after-tax gain on the disposal of a segment of the railway operator's Kingston subdivision, the Lakeshore East, of C$254 and an after-tax gain of C$38 million on the sale of the assets of IC RailMarine Terminal Company, a statement said.

2)     Canadian Pacific Railway profit declines 12pc to US$569 million in 2011

THE CANADIAN Pacific Railway (CPR) has posted a 12 per cent decline in profit to C$570 million (US$569 million) year on year in 2011, drawn on revenues of C$5.18 billion, which fell four per cent.

The Calgary-based railway gained in fourth carload volume by two per cent to total 676,000 of 2.6 million for full year which was down two per cent year on year. During the fourth quarter it increased profit to C$221 million from C$186 million in the same quarter of 2010, drawn on revenue of C$1.41 billion.

Intermodal car loads were the worst hit during the fiscal year at seven per cent and still down at six per cent for the final quarter of the year. Intermodal rates improved, which were higher year on year and increased by four per cent in fourth quarter to C$1,328 per carload.

Source : HKSG.