Latest news with #CNRail
Ottawa Citizen
02-05-2025
- Business
- Ottawa Citizen
CN Rail holds firm on financial outlook amid tariff uncertainty
Article content Canada's largest railway says there is a higher risk of recession in both Canada and the United States due to the trade war initiated by U.S. President Donald Trump, but it hasn't impacted its outlook yet. Article content Article content 'There's no question that uncertainty has increased over the last few months and we're seeing a heightened risk of recession in both Canada and the U.S.,' Canadian National Railway Co. chief executive Tracy Robinson said during a first-quarter earnings call with analysts. 'The resiliency we saw is again proof that our operating model is the right one for this railroad.' Article content Article content The Montreal-based railway reported revenues of $4.4 billion in the first quarter, which is up four per cent from the $4.25 billion recorded a year ago, and net income of $1.16 billion, an increase from $1.1 billion in the same timeframe. Article content Article content Strong grain and fertilizer shipping, along with coal and petrochemicals, primarily drove revenue growth for CN Rail. Currently, its volumes are not being impacted by the uncertainty created by tariffs and other trade-related issues, but Robinson said this may not be the case in the near future. Article content Nevertheless, the railway is still expecting to deliver earnings per share growth of 10 per cent to 15 per cent, while rival Canadian Pacific Kansas City Ltd. lowered its outlook on Wednesday. Article content Robinson said CN Rail is optimistic that the U.S. will be able to reach new trade agreements with Canada, China other countries and is projecting year-over-year volume growth. Article content 'CN is well positioned to enable global trade regardless of potential changes in trade patterns,' she said. Article content Article content Remi Lalonde, CN Rail's chief commercial officer, said many customers are taking a wait-and-see approach with regards to tariffs, and there are some sectors of the railway's business being impacted since some companies are pausing shipments to avoid tariffs, reducing production or building inventory. Article content Article content 'The tariffs are starting to bite and we're seeing that in the intermodal business,' he said. 'We're taking a bit more of a cautious approach to some of the other segments, the metals and mining, the autos in particular.' Article content CN Rail also reached an agreement with its Canadian train operators and conductors through arbitration during the first quarter. Article content Robinson said the agreement is for three years with annual wage increases of three per cent, which she said was in line with the company's expectations. She said progress has also been made in reaching agreements with workers within the company's U.S. operations.
Yahoo
30-04-2025
- Business
- Yahoo
CN Rail vs. CP Rail: Where I'd Put $10,000 in Canadian Railway Stocks
Written by Joey Frenette at The Motley Fool Canada The Canadian railway stocks have been lagging behind the TSX Index and S&P 500 in recent years. Undoubtedly, as Trump's tariff war intensifies and fewer shipments circulate across the continent, the top rail players could stand to be weighed down further. Indeed, wide-sweeping tariffs and their impact may already be partially baked into today's share price. And while only time will tell just how bad the first round of tariffs will hurt, I think there's a pretty strong case for value hunters to start nibbling into a position in a top rail play today, as investors throw in the towel amid tariffs and their potential to cause a bit of a trade drought of sorts. At the end of the day, the top Canadian rail stocks are stellar firms with some of the widest moats around. And while they may be a tad too economically sensitive for most amid a tariff war, those with an investment horizon of at least 10 years ought to be viewing the latest correction in the top transports as more of a buying opportunity. Though I'm not against putting $10,000 in a single name at one time, I do think building a position through the year could be the most prudent move, given it's not at all certain how hard tariffs will hit earnings. With that in mind, I'd start with a $2,000 position and add to it on any further dips, perhaps those that follow underwhelming quarterly showings. But which rail stock is the better bet as they roll into a tariff summer? CN Rail (TSX:CNR) stock seems to have a lot of tariff risk priced in, with shares off close to 26% from their all-time highs. Indeed, this is one of the worst bear markets for CN in a long time. And while another 'lost year' could be in the cards for the stock that's fallen off the tracks, I am a fan of the fast-growing dividend. At the time of this writing, shares yield just shy of 2.7%. That's the most swollen I've seen the yield outside of crisis-level conditions. With a solid dividend-growth history and sudden upside if a trade deal were to be inked sooner rather than later, I'd be inclined to be a net buyer of the dip steadily accumulating through the year. Indeed, catching a bottom in a name that's steadily declining will not be easy. That's why I'd aim to take timing out of the game with a dollar-cost averaging (DCA) approach. CP Rail (TSX:CP) or CPKC is the growthier of the two rail stocks, but it's one that I believe also carries more risks as Trump's tariff war heats up for the summer season. Indeed, management seems to be playing the long game, but many investors may not be willing to ride out the rough patch, especially given its heightened tariff risk. With lots of cross-border freight and a heftier valuation, I think CP stock could be subject to more downside going into year's end. Indeed, higher rewards (and growth) potential often accompany more risk. Now down 19.4%, shares of CP are just below $100 per share. And while there's a robust support level up ahead at the $95–98 level, I wouldn't be so quick to pounce on shares. Not at 24.9 times trailing P/E. That's too rich a multiple for a mere 0.8%-yielder. For now, I find CNR stock to be a better bet, given its lower multiple and much higher yield. The post CN Rail vs. CP Rail: Where I'd Put $10,000 in Canadian Railway Stocks appeared first on The Motley Fool Canada. Before you buy stock in Canadian National Railway, consider this: The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Canadian National Railway wasn't one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years. Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the 'eBay of Latin America' at the time of our recommendation, you'd have $21,345.77!* Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 24 percentage points since 2013*. See the Top Stocks * Returns as of 4/21/25 More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Joey Frenette has positions in Canadian National Railway. The Motley Fool recommends Canadian National Railway and Canadian Pacific Kansas City. The Motley Fool has a disclosure policy. 2025 Sign in to access your portfolio
CBC
08-04-2025
- Business
- CBC
N.W.T. asks regulator to intervene in CN Rail's decision to scrap rail line
CN Rail decided last year not to fix 30-km stretch of rail line between Hay River and Enterprise The N.W.T. government has asked federal regulators to intervene in CN Rail's decision to not fix its damaged rail line between Hay River and Enterprise, arguing the company has a legal obligation to keep the line functional. "The [government of the Northwest Territories] will not stand by as CN Rail shirks its responsibility," reads a written statement from N.W.T. Infrastructure Minister Vince McKay, in a news release on Monday. The government says it applied to the Canadian Transportation Agency for adjudication, saying the rail company "has failed to fulfil its obligations under the Canada Transportation Act." "As a common carrier, CN Rail has a legal duty to maintain this rail line and ensure the continued flow of goods to the N.W.T.'s most vulnerable communities," McKay's statement reads. CN said last year that it had decided not to rebuild a critical 30 kilometres of railway between Enterprise and Hay River that was damaged in 2023's wildfires. It said at the time that the decision followed "thoughtful engagement with local stakeholders and customers," but did not provide any details about who was consulted. The company also said that the repair costs were too high for the customer volume in the region. Territorial officials, however, argued that the rail line was part of a rail and barge corridor that supplies essential goods to rural communities up the Mackenzie Valley, and Inuit communities of the High Arctic. On Monday, the territory again blasted CN Rail for "shirk[ing] its responsibilities." "To be clear, this issue goes beyond just a damaged rail line — it is about protecting the livelihood of N.W.T. residents," the news release states. "CN's decision to abandon this critical infrastructure is a failure of corporate responsibility and contradicts the very principles of reconciliation and respect that the company has publicly committed to through its Indigenous Relations Policy." The damaged rail line is already having a "profound and detrimental effect" on many of the territory's remote communities, it says, by putting further strain on supply chains and transportation costs. The multi-billion-dollar company can afford to fix the line, the territory says, but has instead chosen to "neglect its responsibilities." The railway company stated last year that, under Canadian Transportation Agency rules, rail companies must follow a three-year process to shut down a section of track. After a year on the list, CN can attempt to sell it. Former infrastructure minister Caroline Wawzonek said earlier that the territory wouldn't fund the repair, as the $15 million needed to fix the 30-kilometre stretch "isn't an appropriate use of public tax dollars." She also said then that the territory was looking at its legal options to address the issue. McKay says the Canadian Transportation Agency has accepted its application for adjudication, and that he will not comment further while the adjudication process is underway. The agency is an independent regulator and quasi-judicial tribunal that focuses on the national transportation system, including issues related to air, marine and rail transport. Adjudication can lead to a legally binding decision.
CBC
08-04-2025
- Business
- CBC
N.W.T. asks regulator to intervene in CN Rail's decision to scrap rail line
The N.W.T. government has asked federal regulators to intervene in CN Rail's decision to not fix its damaged rail line between Hay River and Enterprise, arguing the company has a legal obligation to keep the line functional. "The [government of the Northwest Territories] will not stand by as CN Rail shirks its responsibility," reads a written statement from N.W.T. Infrastructure Minister Vince McKay, in a news release on Monday. The government says it applied to the Canadian Transportation Agency for adjudication, saying the rail company "has failed to fulfil its obligations under the Canada Transportation Act." "As a common carrier, CN Rail has a legal duty to maintain this rail line and ensure the continued flow of goods to the N.W.T.'s most vulnerable communities," McKay's statement reads. CN said last year that it had decided not to rebuild a critical 30 kilometres of railway between Enterprise and Hay River that was damaged in 2023's wildfires. It said at the time that the decision followed "thoughtful engagement with local stakeholders and customers," but did not provide any details about who was consulted. The company also said that the repair costs were too high for the customer volume in the region. Territorial officials, however, argued that the rail line was part of a rail and barge corridor that supplies essential goods to rural communities up the Mackenzie Valley, and Inuit communities of the High Arctic. On Monday, the territory again blasted CN Rail for "shirk[ing] its responsibilities." "To be clear, this issue goes beyond just a damaged rail line — it is about protecting the livelihood of N.W.T. residents," the news release states. "CN's decision to abandon this critical infrastructure is a failure of corporate responsibility and contradicts the very principles of reconciliation and respect that the company has publicly committed to through its Indigenous Relations Policy." The damaged rail line is already having a "profound and detrimental effect" on many of the territory's remote communities, it says, by putting further strain on supply chains and transportation costs. The multi-billion-dollar company can afford to fix the line, the territory says, but has instead chosen to "neglect its responsibilities." The railway company stated last year that, under Canadian Transportation Agency rules, rail companies must follow a three-year process to shut down a section of track. After a year on the list, CN can attempt to sell it. Former infrastructure minister Caroline Wawzonek said earlier that the territory wouldn't fund the repair, as the $15 million needed to fix the 30-kilometre stretch "isn't an appropriate use of public tax dollars." She also said then that the territory was looking at its legal options to address the issue. McKay says the Canadian Transportation Agency has accepted its application for adjudication, and that he will not comment further while the adjudication process is underway. The agency is an independent regulator and quasi-judicial tribunal that focuses on the national transportation system, including issues related to air, marine and rail transport. Adjudication can lead to a legally binding decision. In an email to CBC News on Monday, a CN Rail spokesperson said the company last May "communicated our formal decision to initiate the discontinuance process of our line from Enterprise to Hay River with all levels of government, key stakeholders, and our customers."
CBC
19-03-2025
- Business
- CBC
New waterfront entertainment district in Surrey, B.C., could be gateway to city, supporters say
The City of Surrey is undertaking a feasibility study on a new waterfront entertainment district near the entrance to the city by the Pattullo Bridge. Currently, a small area near the bridge linking Surrey and New Westminster, B.C., has two city parks, a trailer park, and industrial areas — with landowners that include the Vancouver Fraser Port Authority and CN Rail. A city staff report asked for a consultant to look at the feasibility of a waterfront entertainment district there, including restaurants, shops, park and plaza areas "to create a memorable gateway into Surrey." It passed council last Monday. Proponents of the plan say the waterfront district would be fitting for the rapidly growing city, B.C.'s second-largest by population, which is set to outpace Vancouver in population over the next decade. "Surrey will soon be the biggest city in British Columbia ... and we don't have any really iconic place for people to go and to, you know, spend their leisure time, and this will be that," said Coun. Linda Annis. Annis said the feasibility study would look to speak to all the stakeholders involved, including residents of the RV park and the federal and provincial governments, but called the proposal "great news for the City of Surrey." A city spokesperson says the comprehensive feasibility study would look to properly define the geographic area of the waterfront district, and is expected to be complete next year. "Surrey has some great parks and public spaces," the spokesperson wrote. "A waterfront district could complement these existing amenities with a landmark type waterfront destination that could blend with active industry such as Granville Island or North Vancouver Shipyards, creating a more memorable gateway into Surrey from across the Fraser River." Plan could face opposition The plan could face opposition, with the port authority indicating in the staff report that it would prefer land adjacent to the port to be designated for industrial use only. In addition, hundreds of people live at the trailer park within the study area, which is close to the Scott Road SkyTrain station and between Brownsville Bar and Tannery parks. The city spokesperson said that the trailer park site was currently zoned for tourist accommodation, and any changes would require rezoning on the part of the landowner. It said the public would have an opportunity to weigh in on any rezoning of the site at council, and residents there may have rights under the provincial Manufactured Home Park Tenancy Act when it comes to tenant compensation. Andy Yan, director of Simon Fraser University's City Program, said that Surrey was a city that could afford to have several more public spaces, and the proposal spoke to the "urban ambitions" of the city's residents and council. However, he cautioned that there were already issues in the area regarding flooding and said it was important for the city to engage with residents before proceeding. "With the latest provincial guidelines, there are some sizeable, I think, challenges towards ... developing infrastructure, developing a road network that is, I think, really meant to move the amount of people that would not be possible now," he said.
