CN (CNI, CNR.TO) Monday reported a decline in profit for the first-quarter hurt mainly by higher expenses.
"CN faced a number of operational challenges in the first quarter, including extreme cold and heavy snow in Western Canada, which hampered operations, congested the network and constrained volume growth, " said Claude Mongeau, President, CEO.
Net income for the quarter declined to C$555 million or C$1.30 per share from C$775 million or C$1.75 per share in the same period last year.
Adjusted earnings for the quarter was C$519 million or C$1.22 per share. On average, 26 analysts polled by Thomson Reuters expected the company to earn C$1.21 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues totaled C$2.47 billion, up from C$2.35 billion last year. Analysts expected revenues of C$2.49 billion.
Operating expenses increased to C$1.69 billion from C$1.55 billion last year. Operating ratio was 68.4 percent, compared to 66.2 percent last year.
The company's Board of Directors have also approved a second-quarter dividend CC$0.43 per share, payable June 28, to shareholders on record June 7.
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