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April 25 (Reuters) - Canadian National Railway Co CNR.TO
lowered its full-year earnings forecast due to
weaker-than-expected freight demand in certain markets and
strengthening of the Canadian dollar.
Canada's biggest railroad said on Monday it now expected
2016 adjusted earnings per share to match last year's C$4.44.
The company in January forecast mid- to single-digits EPS
growth.
Reduced freight volumes due to a slump in oil prices, a
string of bankruptcies in the coal industry, increased
competition from trucks have been weighing on railroad operators
in Canada and the United States.
Companies have been slashing costs to weather the impact of
lower freight volumes.
Montreal-based Canadian National said its total operating
expenses fell about 14 percent to C$1.75 billion ($1.38
billion)in the first quarter ended March 31.
The company's net income rose to C$792 million, or C$1 per
share, in the quarter, from C$704 million, or 86 Canadian cents
per share, a year earlier.
Canadian National reported an adjusted profit of C$1 per
share, handily beating the average analyst estimate of 93
Canadian cents, according to Thomson Reuters I/B/E/S.
Revenue fell 4.3 percent to C$2.96 billion, mainly pulled
down by lower coal shipments due to weaker North American and
global demand.
The company's shares closed at C$83.45 on the Toronto Stock
Exchange on Monday.
($1 = 1.27 Canadian dollars)