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Yahoo
7 days ago
- Business
- Yahoo
Trade disputes hit CN volumes and prompt railway to cut outlook
Canadian National lowered its outlook for the year — and pulled its longer-term guidance Tuesday — in response to ongoing trade- and tariff-related economic uncertainty. CN (NYSE: CNI) delivered the news while releasing its second-quarter financial results, which included higher operating income despite lower revenue and flat volume. 'A few months ago, trade deals seemed imminent. And instead there is an increasing uncertainty around the tariff and trade environment, particularly in Canada,' CEO Tracy Robinson told investors and analysts on the company's earnings call. The current and threatened U.S. tariffs on Canada include a 35% tariff on various Canadian goods set to take effect on Aug. 1, alongside existing tariffs of 25% on certain imports and 50% on steel and aluminum. The trade disputes, along with softening economic conditions, have had a negative impact on CN's forest products, metals, international intermodal, and automotive traffic. Overall for the quarter, volume was down 1% based on revenue ton-miles and flat when measured by carloads and containers. Strong bulk volumes — including grain and potash — and domestic intermodal growth were unable to offset declines in international intermodal and merchandise volume, said Janet Drysdale, interim chief commercial officer. Although grain and fertilizer revenue was up 12%, revenue declined in intermodal, automotive, and every merchandise segment. As volume softened, CN took steps to reduce costs, including furloughing train crews and storing locomotives. 'This team has proactively and progressively adjusted the operating plan resources throughout the quarter, maintaining good tensions between costs and network fluidity and performance,' Robinson said. As a result, operating income increased 5%, to $1.2 billion, as revenue declined 1%, to $3.13 billion. Earnings per share rose 7%, to $1.37. The railway's operating ratio improved 2.3 points, to 61.7%. CN trimmed its $2.5 billion capital budget by $36.7 million. CN now expects to deliver earnings per share growth of between 5% and 9%, down from previous guidance of 10% to 15% growth. And the railway withdrew its 2024-2026 outlook, which was drawn up prior to trade disputes that have weighed on the railway's merchandise and intermodal volumes. Further complicating CN's financial outlook: Unfavorable exchange rates that have a negative impact on earnings per share. Nonetheless, CN still expects several growth projects in Western Canada to come online as expected over the next couple of years. Derek Taylor, CN's chief field operations officer, said CN ratched down costs as merchandise volume declined. At the end of the quarter, 560 train and engine crew members were on furlough, 200 locomotives were parked, and 4,000 additional freight cars were stored. The railway continued to run well, with car-miles per day, through dwell, and local service all improving over last year's second quarter. Subscribe to FreightWaves' Rail e-newsletter and get the latest insights on rail freight right in your aims to grow carload traffic with rail service upgrades Report: Goldman Sachs advising BNSF on potential merger Analysis: UP-NS rail merger spotlights individual legacies in a legacy business Union Pacific, Norfolk Southern in merger talks: WSJ The post Trade disputes hit CN volumes and prompt railway to cut outlook appeared first on FreightWaves.
The Star
23-07-2025
- Business
- The Star
CN Rail chops forecast as trade war hits commodities
The company said there's too much 'uncertainty and volatility' in trade policy to stick with a longer-term forecast. — Bloomberg OTTAWA: Canadian National Railway Co (CN Rail) lowered its earnings guidance for 2025 and removed its outlook entirely for next year as the trade war rattles key sectors the company operates in. The Montreal-based company, which operates a network in Canada and the United States, now expects earnings per share to rise in the 'mid to high single-digit range' this year, a sharp cut from earlier guidance that called for 10% to 15% growth. The company said there's too much 'uncertainty and volatility' in trade policy to stick with a longer-term forecast. 'A few months ago, the trade deals seemed imminent,' chief executive officer Tracy Robinson said during a call with analysts. And instead, there is an increasing uncertainty around the tariff and trade environment – particularly in Canada – and some concerns over the weakening macroeconomic environment.' The shares dipped in after-hours trading in New York. The company will work with customers in sectors affected by tariffs to help them get access to other markets, she said. Canadian National earned C$1.87 per share on an adjusted basis in the three months ending June 30, about one Canadian cent below what was expected by analysts in a Bloomberg survey. Revenue slipped by 1% to C$4.3 bil (US$3.1 bil) as tariffs and economic upheaval weighed on revenues for shipping cars, metals and lumber. Grain and fertiliser shipments were a bright spot, rising 13% over last year. Automotive revenue, an industry that's central to US President Donald Trump's trade strategy, fell 5% from a year earlier to C$241 mil in the quarter. Both finished vehicles and auto parts were below last year's levels, with auto manufacturers shifting products from the United States to Mexico, according to the company. Chief financial officer Ghislain Houle said a stronger Canadian dollar was a factor in the decision to lower earnings expectations. 'Every penny of appreciation of the Canadian dollar to the US dollar represents a headwind' of 5 Canadian cents of earnings per share annually, he said. Canadian National acted early in the quarter to furlough some employees to save costs, said Patrick Whitehead, the chief network operating officer. The company had hundreds of trainee and engine employees on furlough by the end of the quarter. — Bloomberg
Yahoo
22-07-2025
- Business
- Yahoo
CN to Report Second-Quarter 2025 Financial and Operating Results Today
MONTREAL, July 22, 2025 (GLOBE NEWSWIRE) -- CN (TSX: CNR) (NYSE: CNI) will issue its second-quarter 2025 financial and operating results after the market close. CN's senior officers will review the results and the railway's outlook in a conference call starting at 4:30 p.m. Eastern Time today. Tracy Robinson, CN President and Chief Executive Officer, will lead the call. Parties wishing to participate via telephone may dial 1-800-715-9871 (Canada/U.S.), or 1-647-932-3411 (International), using 7456934 as the passcode. Participants are advised to dial in 10 minutes prior to the call. CN will webcast the presentation live and furnish slides supporting the officers' remarks via the Investors section of its website at A webcast replay will be available after the call ends. About CNCN powers the economy by safely transporting more than 300 million tons of natural resources, manufactured products, and finished goods throughout North America every year for its customers. With its nearly 20,000-mile rail network and related transportation services, CN connects Canada's Eastern and Western coasts with the U.S. Midwest and the U.S. Gulf Coast, contributing to sustainable trade and the prosperity of the communities in which it operates since Michnowski Stacy Alderson Senior Manager Assistant Vice-President Media Relations Investor Relations (438) 596-4329 (514) 399-0052 media@ in to access your portfolio
Hamilton Spectator
22-07-2025
- Business
- Hamilton Spectator
CN to Report Second-Quarter 2025 Financial and Operating Results Today
MONTREAL, July 22, 2025 (GLOBE NEWSWIRE) — CN (TSX: CNR) (NYSE: CNI) will issue its second-quarter 2025 financial and operating results after the market close. CN's senior officers will review the results and the railway's outlook in a conference call starting at 4:30 p.m. Eastern Time today. Tracy Robinson, CN President and Chief Executive Officer, will lead the call. Parties wishing to participate via telephone may dial 1-800-715-9871 (Canada/U.S.), or 1-647-932-3411 (International), using 7456934 as the passcode. Participants are advised to dial in 10 minutes prior to the call. CN will webcast the presentation live and furnish slides supporting the officers' remarks via the Investors section of its website at . A webcast replay will be available after the call ends. About CN CN powers the economy by safely transporting more than 300 million tons of natural resources, manufactured products, and finished goods throughout North America every year for its customers. With its nearly 20,000-mile rail network and related transportation services, CN connects Canada's Eastern and Western coasts with the U.S. Midwest and the U.S. Gulf Coast, contributing to sustainable trade and the prosperity of the communities in which it operates since 1919. Contacts:
Toronto Star
22-07-2025
- Business
- Toronto Star
CN to Report Second-Quarter 2025 Financial and Operating Results Today
MONTREAL, July 22, 2025 (GLOBE NEWSWIRE) — CN (TSX: CNR) (NYSE: CNI) will issue its second-quarter 2025 financial and operating results after the market close. CN's senior officers will review the results and the railway's outlook in a conference call starting at 4:30 p.m. Eastern Time today. Tracy Robinson, CN President and Chief Executive Officer, will lead the call.
