CN Rail Q2 earnings drop by 60% as pandemic hits crude oil, auto shipments

CN Rail Q2 earnings drop by 60% as pandemic hits crude oil, auto shipments
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MONTREAL, Ont. — Canadian National Railway Co. says profits fell by 60 per cent last quarter as shipments declined nearly across the board due to fallout from the COVID-19 pandemic.

The country’s largest railroad operator says net income dropped to $545 million in the quarter ended June 30 compared with $1.36 billion a year earlier.

Revenue decreased by $750 million or 19 per cent year over year to $3.21 billion in the second quarter.

On an adjusted basis, diluted earnings per share fell 26 per cent to $1.28 from $1.73, matching analyst predictions, according to financial markets data firm Refinitiv.

CN says the pandemic “adversely impacted” earnings, with revenue from auto and petroleum and chemicals dropping 72 per cent and 25 per cent respectively.

Grain and fertilizer traffic held firm, however, helping to mitigate the damage from all other categories at the Montreal-based company.

This report by The Canadian Press was first published July 21, 2020.

Companies in this story: (TSX:CNR)

The Canadian Press

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