Canadian National Railway Lowers Earnings Guidance - Quick Facts

(RTTNews) - Canadian National Railway Co (CNR.TO, CNI) announced, due to weaker than expected Revenue ton-miles (RTMs) in the first quarter and a longer than anticipated construction period needed for significant infrastructure capacity projects in 2018, the company now aims to deliver 2018 adjusted EPS in the range of C$5.10 to C$5.25 compared to its initial financial outlook of C$5.25 to C$5.40.

First-quarter earnings per share decreased by 13 percent on an adjusted basis to C$1.00. On a constant currency basis, earnings per share for the first quarter of 2018 would have been higher by C$0.03 per share.

Revenues for the first quarter were C$3.19 billion, a decrease of C$12 million, when compared to the same period in 2017. The company said the decrease in revenues was mainly attributable to reduced RTMs resulting from challenging operating conditions, including harsh winter weather and low network resiliency, as well as the negative translation impact of a stronger Canadian dollar, partly offset by higher applicable fuel surcharge rates and freight rate increases. Revenue ton-miles (RTMs) declined by four percent and carloadings increased by three percent.