Prince George, B.C.- CN has released it’s second quarter financial report.

 

Net income declined to C$387 million, down from net income of C$459 million last year. The railway blames the dip on depressed North American and global economies.

Revenues were down 15% to C$1,781 million, carloads declined 22 % to 928,000, and revenue ton-miles declined 14 % with weakness in almost all market segments.

 

Operating expenses were down 14 % to C$1,198 million, reflecting a significant reduction in year-over-year fuel prices and extensive cost-containment measures in response to lower traffic.

 

E. Hunter Harrison, president and chief executive officer, says while the second quarter saw a continuation of significant weakness in most commodity groups, the biggest declines were in forest products traffic, as well as automotive, metals and minerals shipments.  Intermodal, grain and fertilizers, and petroleum and chemicals saw lesser declines. Coal was a bright spot, though , as a result of higher U.S. shipments resulting from CN’s acquisition of the EJ&E railroad .

 

“While the current economic environment continues to affect our business significantly and we remain focused on adjusting expenses accordingly, we see some signs that several markets are stabilizing and we hope the economy will begin to recover in the second half of this year. CN’s solid cost structure and operational expertise will position us well to meet the challenges and opportunities that lie ahead.”