Canadian National Railway reported a 6% increase in third-quarter profit Friday as stronger grain, energy and automotive freight activity lifted revenue, while higher fuel costs and a technology write-down weighed on reported margins.
The Montreal-based railway (NYSE: CNI) maintained its full-year earnings outlook, saying growth was tracking toward the upper end of its forecast range.
CN earned C$1.209 billion ($866 million), or $1.43 per diluted share, in the three months ended Sept. 30, compared with $816 million, or $1.31 a share, a year earlier. Revenue increased 15% to $3.42 billion from $2.98 billion.
Adjusted diluted earnings rose 18% to approximately $1.55 a share, excluding a software impairment and rail-merger-related advisory expenses. That exceeded analysts’ expectations of about $1.50 a share, according to FactSet figures reported by Dow Jones. Revenue also topped the approximately $3.34 billion forecast.
Freight revenue increased 15% to approximately $3.28 billion. Grain and fertilizer revenue rose 19% to $661 million, petroleum and chemicals revenue increased 17% to $716 million, and automotive revenue jumped 31% to $203 million.
Revenue ton-miles increased 4%. Grain...