Canadian National Railway 3Q Profit Fell as Merger Fee Not Repeated

By Jeffrey T. Lewis

Canadian National Railway Co.'s profit fell in the third quarter after a merger termination fee the company received a year earlier wasn't repeated this year.

The Montreal-based railroad operator reported net income of C$1.46 billion, compared with C$1.69 billion in the same quarter a year earlier. Earnings per share reached C$2.13 from C$2.37 and adjusted earnings per share rose to C$2.13 from C$1.52.

Revenue increased to a record C$4.51 billion from C$3.59 billion in the year-earlier quarter. The jump in sales was due mainly to higher fuel surcharges, freight rate increases and the impact of a weaker Canadian dollar, the company said.

The sales and profit figures beat market expectations. The consensus, as compiled by FactSet, was for revenue of C$4.33 billion and profit of C$1.37 billion.

In the third quarter of 2021, Canadian National reported it received a merger termination fee of C$886 million from Kansas City Southern after the US-based rail company chose to join with Canadian Pacific Railway Ltd.

Write to Jeffrey T. Lewis at [e-mail]

(END) Dow Jones Newswires

10-25-22 1637ET