CN Rail profits plummet as consumer demand falls and B.C. port strike takes its toll

A CN Rail train moves cargo containers at the Centerm Container Terminal at port in Vancouver, on Friday, July 14, 2023. British Columbia port workers are back on the job after a tentative agreement was reached between the employers association and the workers union, ending a 13-day-old strike. THE CANADIAN PRESS/Darryl Dyck

Canadian National Railway Co. is reporting a nearly one-quarter drop in profits for the three months ended Sept. 30.

Canada's largest railway says falling consumer demand and fallout from the B.C. port workers' strike dented its cargo volumes and revenue last quarter, alongside lower fuel surcharges.

The Montreal-based company says net income in its third quarter fell 24 per cent to $1.11 billion from $1.46 billion in the same period a year earlier.

CN says revenues decreased 12 per cent to $3.99 billion from $4.51 billion the year before.

On an adjusted basis, diluted earnings were down 21 per cent at $1.69 per share from $2.13 per share last year, slightly below analyst expectations of $1.72 per share, according to financial data firm Refinitiv.

CN says it continues to expect flat to slightly negative adjusted earnings this year, adding that it forecasts growth of between 10 per cent and 15 per cent between 2024 and 2026.

This report by The Canadian Press was first published Oct. 24, 2023.

Companies in this story: (TSX:CNR)