MONTREAL – Crude-by-rail and container traffic drove Canadian National Railway Co. to its highest ever quarterly revenue and adjusted earnings per share, shoring up confidence in its EPS forecast of low double-digit growth for 2019.
The country’s largest railroad operator saw revenues rise nine per cent year over year to a record $3.96 billion last quarter.
About 45 per cent of the windfall came from containers, and petroleum and chemicals – CN Rail’s two biggest lines of business – which rose 15 per cent and 26 per cent, respectively, to hit $1.77 billion.
TransX, a Winnipeg-based trucking and transport company that CN acquired in March, was responsible for roughly one-tenth of the company’s $992 million in container revenue, chief executive Jean-Jacques Ruest said on a conference call after markets closed Tuesday.
The railway ramped up crude traffic each month in the quarter, hitting 200,000 barrels a day in June versus 150,000 barrels a day in April.
“We’re optimistic that the Alberta government will enable that momentum to continue for the balance of the year,” said chief financial officer Ghislain Houle.
Alberta Premier Jason Kenney has extended the 3.71-million barrel-a-day June production limit into July, and his United Conservative government hope
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