Canadian National Railway Company (TSE:CNR) announced strong quarterly results Wednesday reporting that net income rose 27% last quarter as compared to last year, while increasing its earnings outlook and capital program for the year.
CN said Tuesday that alongside a "robust demand environment" along with its strong performance in the last quarter, the company is aiming to earn C$5.30 to C$5.45 per adjusted diluted share this year, up from its previous guidance of C$5.10 to C$5.25.
Revenues for the second quarter of 2018 were $3.6bln, an increase of $302mln or 9% year-over-year.
"Our entire team pulled together quickly to turn around our operational performance following a challenging winter, delivering a best-in-class operating ratio of 58.2% in the quarter," said J.J. Ruest, president and chief executive officer of CN.
"Record capital investments in new equipment and expanded infrastructure are on schedule, as we advance important projects that will give us the capacity and resiliency to serve the market at the industry-leading standard we and our customers expect."
The company announced it has increased its capital program by C$100mln to C$3.5bln to buy more new rail cars this year. Operating expenses increased by 10%.
Analysts had expected a net income of C$1.02bln and earnings per share of C$1.39. Adjusted net income increased by 11% to C$1.12bln.
Quarterly earnings ending June 30 came in at C$1.31bln, up from C$1.03bln from the same quarter last year. Adjusted diluted earnings per share were C$1.51, up from C$1.34 from last year.
Shares of CN Rail were down -0.5% at C$112.00 on Tuesday.