Brenda O'Farrell
Investing.com – Shares of Canadian National Railway were up more than 2% in morning trading Wednesday –despite the fact the country’s largest train service reported fourth-quarter earnings yesterday that showed a significant drop in net income.
Net income for the quarter was $873 million, which represents a 24% drop from the same quarter the previous year. Earnings per share were also down, at $1.22, compared with $1.53 in last year’s fourth quarter.
The main contributor to revenue shortfalls was the eight-day strike that brought all CN trains to a halt in November. The work stoppage stalled the transportation of three crucial commodities in the country – grain, potash and crude oil.
In presenting its fiscal performance, CN showed adjusted earnings for the three-month period of $896 million on revenues of $3.58 billion, a decrease of 6% compared with the same quarter the year before.
CN shares have gained about 6% since the beginning of 2020, and just over 11% in the last year, outperforming the market.