CN Rail’s second-quarter revenue falls 19%

Chamber of Shipping > Blog > News > Local > CN Rail’s second-quarter revenue falls 19%

CN Rail’s revenue fell by 19 per cent in the second quarter, due to the negative impact of covid-19 on industrial activity and consumer demand. Q2 revenues dropped by 59 per cent to $545-million, or 77 cents a share, from $1.36-billion or $1.88 in the same period a year ago. Revenue slumped to $3.2-billion, from $4-billion. CN’s operating ratio, a measure of cost versus sales, deteriorated to 75.5 per cent. Volumes of cargo fell by 16 per cent on average across all categories, with automotive shipments taking the biggest hit with a 72 per cent drop, and grain being the least affected with carloads declining by 3 per cent. CN has responded to the economic slump by laying off 20 per cent of its work force, making idle 700 locomotives and 20,000 rail cars, and closing freight yards and repair shops, and by opting to run longer and heavier trains to boost efficiency.

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