MONTREAL — CN Rail has boosted its financial outlook for the year as it reported gains in revenue and adjusted profits in the third quarter on higher volumes and rates, while net income was down.
The Montreal-based railway says net income for the quarter ending Sept. 30 was $1.46 billion, down from $1.69 billion for the same quarter last year.
Adjusted profits for the last quarter were unchanged at $1.46 billion, while last year's adjusted profits were $1.08 billion after several exclusions including an $886 million payout related to its failed takeover of a U.S. railway.
Revenue of $4.51 billion for the quarter was up from $3.59 billion last year as the company brought in higher fuel surcharge revenue, raised freight rates, and saw higher volumes of coal exports and U.S. grain shipments.
The railway says it now expects to deliver free cash flow of about $4.2 billion in 2022, up from a range of between $3.7 billion and $4 billion it gave in an April guidance.
It also now expects to deliver adjusted, diluted earnings per share growth of about 25 per cent, up from the 15 to 20 per cent it guided in April.
This report by The Canadian Press was first published Oct. 25, 2022.
Companies in this story: (TSX:CNR)
The Canadian Press
