CN Reports Second-Quarter 2002 Financial Results.Business Editors MONTREAL--(BUSINESS WIRE)--July 22, 2002 Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. National (NYSE NYSE See: New York Stock Exchange :CNI (1) (Certified NetWare Instructor) See Novell certification. (2) (Coalition for Networked Information, Washington, DC, www.cni.org) A partnership of the Association of Research Libraries, CAUSE and EDUCOM, founded in 1990. )(TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :CNR See riser card. CNR - Communication and Network Riser ) -- Second-quarter 2002 net income and diluted earnings per share of $280 million and $1.39, respectively, compared with adjusted net income and diluted EPS (1) of $240 million and $1.21 for second-quarter 2001 -- Revenues of $1,551 million, up 11 per cent on the strength of WC acquisition and increased petroleum and chemicals, automotive and intermodal traffic -- Strong six-month free cash flow of $356 million Canadian National today reported second-quarter 2002 net income of $280 million, an increase of 17 per cent over adjusted net income (1) of $240 million for the same quarter of 2001. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the second quarter of 2002 were $1.39, up 15 per cent from adjusted diluted earnings per share (1) of $1.21 for the year-earlier period. Reported net income for the second quarter of 2001 was $217 million, or $1.10 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for second-quarter 2002 increased 10 per cent to $490 million from $444 million - excluding the effect of a special charge to operations to recognize the costs of a workforce adjustment program - for the same quarter of 2001. Including the special charge, operating income for second-quarter 2001 was $346 million. Revenues for the most recent quarter rose 11 per cent to $1,551 million, while operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. were $1,061 million. Excluding the special charge, second-quarter 2001 operating expenses were $948 million; including it, operating expenses were $1,046 million. CN President and Chief Executive Officer Paul Paul, 1901–64, king of the Hellenes (1947–64), brother and successor of George II. He married (1938) Princess Frederika of Brunswick. During Paul's reign Greece followed a pro-Western policy, and the Cyprus question was temporarily resolved. M. Tellier said: "We are pleased with these results, which were achieved in a difficult environment for our grain and coal units. The Wisconsin Wisconsin, state, United States Wisconsin (wĭskŏn`sən, –sĭn), upper midwestern state of the United States. It is bounded by Lake Superior and the Upper Peninsula of Michigan, from which it is divided by the Menominee Central acquisition, and the strong performance of our petroleum and chemicals, automotive and intermodal in·ter·mod·al adj. Relating to transportation by more than one means of conveyance, as by truck and rail: intermodal transport. units, drove a 17 per cent increase in net income, and 15 per cent rise in earnings per share for the second quarter. Free cash flow for the first half of 2002 was also strong, rising to $356 million from $208 million for the comparable period of 2001. In sum, the strength of our service-sensitive merchandise MERCHANDISE. By this term is understood all those things which merchants sell either wholesale or retail, as dry goods, hardware, groceries, drugs, &c. It is usually applied to personal chattels only, and to those which are not required for food or immediate support, but such as remain business and intermodal unit more than offset tough conditions for CN's grain and coal segments. "CN's petroleum and chemicals unit benefited from the inclusion of WC revenues, market share gains and strong sulfur sulfur or sulphur (sŭl`fər), nonmetallic chemical element; symbol S; at. no. 16; at. wt. 32.06; m.p. 112.8°C; (rhombic), 119.0°C; (monoclinic), about 120°C; (amorphous); b.p. 444.674°C;; sp. gr. at 20°C;, 2. shipments to the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and to offshore markets. Continuing high motor vehicle production, particularly in the U.S., boosted our automotive revenue sharply. And the improvement in intermodal revenues reflected stronger Canadian retail sales, higher volumes on expedited trains in the Canadian domestic segment, and increased overseas traffic in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite the loss of some overseas moves. Grain revenues were significantly affected again by the poor 2001/2002 Canadian crop, while coal revenues declined as a result of reduced demand from power utilities and weak Canadian coal exports to offshore markets. "CN's strength is its service-sensitive merchandise business - petroleum and chemicals, forest products, metals and minerals, and automotive - which is growing faster than the rail industry average as a result of our disciplined, scheduled railroad railroad or railway, form of transportation most commonly consisting of steel rails, called tracks, on which freight cars, passenger cars, and other rolling stock are drawn by one locomotive or more. service. This service edge positions CN for further market share gains in its merchandise segments, with continued economic recovery expected for the balance of the year. However, CN remains cautious about business prospects for the second half of 2002, as there are signs of uncertainty in the overall level of consumer and business confidence." Five of CN's seven business units experienced revenue gains in the second quarter of 2002: petroleum and chemicals (28 per cent); forest products (24 per cent); metals and minerals (18 per cent); automotive (14 per cent); and intermodal (seven per cent). Revenues declined for coal (eight per cent), and grain and fertilizers (seven per cent). Total carloadings for second-quarter 2002 rose 12 per cent to 1,059 thousand. CN's operating ratio Operating Ratio A ratio that shows the efficiency of management by comparing operating expense to net sales: for the most recent three-month period was 68.4 per cent, compared with 68.1 per cent, excluding the special charge, for the year-earlier quarter. The increase in operating expenses for second-quarter 2002 was largely attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the consolidation of WC operating expenses, higher expenses for labor and fringe benefits fringe benefits, n.pl the benefits, other than wages or salary, provided by an employer for employees (e.g., health insurance, vacation time, disability income). , equipment rents, and casualty and other, partially offset by lower fuel costs. First-half 2002 results Net income for the first half of 2002 was $510 million, compared with adjusted net income (1) of $442 million for the comparable period of 2001. Diluted earnings per share for the first six months of 2002 were $2.54 per share, up from adjusted diluted earnings per share (1) of $2.24 for the year-earlier period. Reported net income for the first six months of 2001 was $492 million, or $2.49 per diluted share. Operating income for the first half of 2002 was $896 million, compared with $829 million - excluding the effect of the special charge - for the same period of 2001. Including the special charge, operating income for first-half 2001 was $731 million. First-half 2002 revenues increased 10 per cent to $3,060 million, while operating expenses were $2,164 million. Excluding the special charge, operating expenses for the first six months of 2001 were $1,961 million; including it, operating expenses were $2,059 million. Five of CN's business units reported increased revenues for the first six months of 2002: forest products (28 per cent); petroleum and chemicals (23 per cent); metals and minerals (21 per cent); automotive (17 per cent); intermodal (three per cent). Revenues declined for grain and fertilizers (12 per cent) and coal (nine per cent). Total carloadings for the first half of 2002 increased eight per cent to 2,058 thousand. (1) Adjusted net income and diluted earnings per share for the second quarter and first half of 2001 exclude a $62-million after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. charge (31 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. ) to operations for a workforce adjustment program; a $71-million after-tax charge (35 cents per share) to write down CN's net investment in 360networks Inc.; and a $110 million deferred income tax recovery (55 cents per share) resulting from the enactment of lower corporate tax rates in Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of . In addition, CN's first-half 2001 results exclude a gain from the sale of CN's 50 per cent interest in the Detroit River Detroit River River, southeastern Michigan, U.S. Forming part of the boundary between Michigan and Ontario, Can., it connects Lake St. Clair with Lake Erie. It flows south for 32 mi (51 km) past Detroit and Windsor, Ont., where a bridge and tunnel connect the two cities. Tunnel tunnel, underground passage usually made without removing the overlying rock or soil. Although tunnels are approximately horizontal, they must be built with sufficient gradient for proper drainage. Company, equal to $73 million after-tax, or 36 cents per diluted share. Note 10 to the accompanying ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. financial statements provides a reconciliation of adjusted net income to the Company's net income reported in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with United States generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (U.S. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ). The financial results in this press release are reported in Canadian dollars Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents and were determined on the basis of U.S. GAAP. This news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . CN cautions that, by their nature, forward-looking statements involve risk and uncertainties and that its results could differ materially from those expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. in such statements. Reference should be made to CN's most recent Form 40-F filed with the United States Securities and Exchange Commission, and the Annual Information Form filed with the Canadian securities regulators, for a summary of major risk factors. Canadian National Railway Company Canadian National Railway Company (NYSE: CNI, TSX: CNR) is a Canadian rail transportation company that operates the Canadian National Railway. It was created in December, 1918 as a Crown corporation of the Government of Canada to nationalize several bankrupt rail systems spans Canada and mid-America, from the Atlantic and Pacific oceans to the Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east , serving the ports of Vancouver Vancouver, city, Canada Vancouver, city (1991 pop. 471,844), SW British Columbia, Canada, on Burrard Inlet of the Strait of Georgia, opposite Vancouver Island and just N of the Wash. border. , Prince Rupert Prince Rupert, city (1991 pop. 16,620), W British Columbia, Canada, on Kaien Island, in Chatham Sound near the mouth of the Skeena River, S of the Alaska border. , B.C., Montreal Montreal (mŏn'trēôl`), Fr. Montréal (môNrāäl`), city (1991 pop. 1,017,666), S Que., Canada, on Montreal island, surrounded by St. Lawrence River and Rivière des Prairies. , Halifax Halifax, city, Canada Halifax, city (1991 pop. 114,455), provincial capital, S central N.S., Canada, on the Atlantic Ocean. It is the largest city in the Maritime Provinces and is one of Canada's principal ice-free Atlantic ports. , New Orleans New Orleans (ôr`lēənz –lənz, ôrlēnz`), city (2006 pop. 187,525), coextensive with Orleans parish, SE La., between the Mississippi River and Lake Pontchartrain, 107 mi (172 km) by water from the river mouth; founded , and Mobile, Ala ALA aminolevulinic acid. Ala alanine. ala (a´lah) pl. a´lae [L.] a winglike process. ., and the key cities of Toronto Toronto (tərŏn`tō), city (1998 est pop. 2,400,000), provincial capital, S Ont., Canada, on Lake Ontario. Toronto is the largest city in Canada and since the 1970s has been one of the fastest-changing cities in North America, experiencing , Buffalo, Chicago Chicago, city, United States Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. , Detroit Detroit, city, United States Detroit (dĭtroit`), city (1990 pop. 1,027,974), seat of Wayne co., SE Mich., on the Detroit River and between lakes St. Clair and Erie; inc. as a city 1815. , Duluth Duluth (dəl  th`), city (1990 pop. 85,493), seat of St. Louis co., NE Minn., at the west end of Lake Superior, at the head of lake navigation and opposite Superior, Wis.; inc. 1870. , Minn./Superior, Wis adv. 1. Certainly; really; indeed.v. t. 1. To think; to suppose; to imagine; - used chiefly in the first person sing. present tense, I wis. See the Note under Ywis. ., Green Bay, Wis., Minneapolis/St. Paul, Memphis, St. Louis Louis, titular duke of Burgundy Louis, 1682–1712, titular duke of Burgundy; grandson of King Louis XIV of France. He became heir to the throne on the death (1711) of his father, Louis the Great Dauphin. , and Jackson Jackson. 1 City (1990 pop. 37,446), seat of Jackson co., S Mich., on the Grand River; inc. 1857. It is an industrial and commercial center in a farm region. , Miss., with connections to all points in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. .
CANADIAN NATIONAL RAILWAY COMPANY
CONSOLIDATED STATEMENT OF INCOME (U.S. GAAP)
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----------------------------------------------------------------------
(In millions, except per share data)
Three months ended Six months ended
June 30 June 30
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2002 2001 2002 2001
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(Unaudited)
Revenues $ 1,551 $ 1,392 $ 3,060 $ 2,790
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Operating expenses excluding
special charge 1,061 948 2,164 1,961
Special charge (Note 3) - 98 - 98
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Total operating expenses 1,061 1,046 2,164 2,059
Operating income 490 346 896 731
Interest expense (91) (78) (187) (158)
Other income (loss) (Note 4) 23 (90) 61 22
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Income before income taxes 422 178 770 595
Income tax (expense)
recovery (Note 5) (142) 39 (260) (103)
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Net income (Note 10) $ 280 $ 217 $ 510 $ 492
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Earnings per share (Note 10)
Basic $ 1.44 $ 1.13 $ 2.64 $ 2.57
Diluted $ 1.39 $ 1.10 $ 2.54 $ 2.49
Weighted-average number of
shares
Basic 193.9 192.0 193.5 191.7
Diluted 203.3 200.9 203.1 200.4
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See accompanying notes to consolidated financial statements.
CANADIAN NATIONAL RAILWAY COMPANY
CONSOLIDATED STATEMENT OF OPERATING INCOME (U.S. GAAP)
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(In millions)
Three months ended Six months ended
June 30 June 30
------------------------ -----------------------
Variance Variance
2002 2001 Fav 2002 2001 Fav
(Unfav) (Unfav)
----------------------------------------------------------------------
(Unaudited)
Revenues
Petroleum and
chemicals $ 271 $ 212 28% $ 544 $ 443 23%
Metals and
minerals 138 117 18% 260 214 21%
Forest products 334 269 24% 659 514 28%
Coal 81 88 (8%) 158 173 (9%)
Grain and
fertilizers 255 275 (7%) 524 596 (12%)
Intermodal 261 244 7% 496 481 3%
Automotive 159 139 14% 310 266 17%
Other items 52 48 8% 109 103 6%
------------------------------- -------------
1,551 1,392 11% 3,060 2,790 10%
Operating expenses
Labor and fringe
benefits 430 370 (16%) 891 748 (19%)
Purchased
services 143 132 (8%) 280 265 (6%)
Depreciation and
amortization 144 131 (10%) 285 263 (8%)
Fuel 114 121 6% 226 264 14%
Equipment rents 92 75 (23%) 179 151 (19%)
Material 57 51 (12%) 118 114 (4%)
Operating taxes 42 37 (14%) 83 81 (2%)
Casualty and
other 39 31 (26%) 102 75 (36%)
Special charge
(Note 3) - 98 100% - 98 100%
------------------------------- --------------
1,061 1,046 (1%) 2,164 2,059 (5%)
------------------------------- --------------
Operating
income $ 490 $ 346 42% $ 896 $ 731 23%
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Operating ratio
(excluding
special charge) 68.4% 68.1% (0.3) 70.7% 70.3% (0.4)
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See accompanying notes to consolidated financial statements.
CANADIAN NATIONAL RAILWAY COMPANY
CONSOLIDATED BALANCE SHEET (U.S. GAAP)
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(In millions)
June 30 December 31 June 30
2002 2001 2001
----------------------------------------------------------------------
(Unaudited) (Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 93 $ 53 $ 30
Accounts receivable (Note 6) 675 645 662
Material and supplies 163 133 136
Deferred income taxes (Note 5) 125 153 140
Other 185 180 142
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1,241 1,164 1,110
Properties 18,732 19,145 15,880
Other assets and deferred
charges (Note 2) 866 914 382
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Total assets $ 20,839 $ 21,223 $ 17,372
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Liabilities and shareholders'
equity
Current liabilities:
Accounts payable and accrued
charges $ 1,355 $ 1,374 $ 1,272
Current portion of long-term
debt (Note 6) 832 163 281
Other 83 132 82
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2,270 1,669 1,635
Deferred income taxes (Note 5) 4,560 4,591 3,404
Other liabilities and deferred
credits 1,217 1,345 1,159
Long-term debt (Note 6) 4,500 5,764 3,873
Convertible preferred
securities (Note 7) 347 366 348
Shareholders' equity:
Common shares (Note 7) 4,499 4,442 4,402
Accumulated other
comprehensive income 31 58 36
Retained earnings 3,415 2,988 2,515
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7,945 7,488 6,953
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Total liabilities and
shareholders' equity $ 20,839 $ 21,223 $ 17,372
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See accompanying notes to consolidated financial statements.
CANADIAN NATIONAL RAILWAY COMPANY
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (U.S. GAAP)
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(In millions)
Three months ended Six months ended
June 30 June 30
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2002 2001 2002 2001
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(Unaudited)
Common shares (1)
Balance, beginning of period $ 4,473 $ 4,385 $ 4,442 $ 4,349
Stock options exercised and
conversion of convertible
preferred securities (Note 7) 26 17 57 53
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Balance, end of period $ 4,499 $ 4,402 $ 4,499 $ 4,402
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Accumulated other
comprehensive income
Balance, beginning of period $ 92 $ 97 $ 58 $ 151
Other comprehensive income (loss):
Unrealized foreign exchange
gain (loss) on translation
of U.S. dollar denominated
long-term debt designated as
a hedge of the net investment
in U.S. subsidiaries 219 123 208 (29)
Unrealized foreign exchange
gain (loss) on translation
of the net investment in
foreign operations (315) (196) (303) 51
Unrealized holding gain
(loss) on investment in
360networks Inc. - 22 - (129)
Unrealized holding gain
(loss) on fuel derivative
instruments (Note 8) 4 2 55 (5)
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Other comprehensive loss
before income taxes (92) (49) (40) (112)
Income tax recovery
(expense) on other
comprehensive loss (Note 5) 31 (12) 13 (3)
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Other comprehensive loss (61) (61) (27) (115)
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Balance, end of period $ 31 $ 36 $ 31 $ 36
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Retained earnings
Balance, beginning of period $ 3,176 $ 2,335 $ 2,988 $ 2,098
Net income 280 217 510 492
Dividends (41) (37) (83) (75)
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Balance, end of period $ 3,415 $ 2,515 $ 3,415 $ 2,515
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See accompanying notes to consolidated financial statements.
(1) The Company issued 0.6 million and 1.4 million shares for the
three and six months ended June 30, 2002, respectively, as a
result of stock options exercised and the conversion of
convertible preferred securities. At June 30, 2002, the Company
had 194.1 million common shares outstanding.
CANADIAN NATIONAL RAILWAY COMPANY
CONSOLIDATED STATEMENT OF CASH FLOWS (U.S. GAAP)
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(In millions)
Three months ended Six months ended
June 30 June 30
------------------ -----------------
2002 2001 2002 2001
----------------------------------------------------------------------
(Unaudited)
Operating activities
Net income $ 280 $ 217 $ 510 $ 492
Non-cash items in income:
Depreciation and
amortization 146 132 288 266
Deferred income taxes
(Note 5) 85 (70) 156 17
Gain on sale of investment
(Note 4) - - - (101)
Write-down of investment
(Note 4) - 99 - 99
Special charge (Note 3) - 98 - 98
Changes in:
Accounts receivable 15 51 (41) 51
Material and supplies (10) (1) (33) (26)
Accounts payable and accrued
charges 31 56 20 (107)
Other net current assets and
liabilities (12) (6) (12) (3)
Payments for workforce
reductions (47) (40) (94) (89)
Other (13) (49) (37) (105)
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Cash provided from operating
activities 475 487 757 592
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Investing activities
Net additions to properties (242) (269) (362) (398)
Other, net (28) (12) 44 89
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Cash used by investing
activities (270) (281) (318) (309)
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Dividends paid (41) (37) (83) (75)
Financing activities
Issuance of long-term debt 1,035 236 1,890 504
Reduction of long-term debt (1,182) (430) (2,260) (742)
Issuance of common shares 25 15 54 45
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Cash used by financing
activities (122) (179) (316) (193)
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Net increase (decrease) in
cash and cash equivalents 42 (10) 40 15
Cash and cash equivalents,
beginning of period 51 40 53 15
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Cash and cash equivalents,
end of period $ 93 $ 30 $ 93 $ 30
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----------------------------------------------------------------------
See accompanying notes to consolidated financial statements.
CANADIAN NATIONAL RAILWAY COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (U.S. GAAP)
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Note 1 - Basis of presentation In management's opinion, the accompanying unaudited interim consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge , prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP), contain all adjustments (consisting of normal recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. accruals Accruals Accounts on a balance sheet that represent liabilities and non-cash-based assets used in accrual-based accounting. These accounts include, among many others, accounts payable, accounts receivable, goodwill, future tax liability and future interest expense. ) necessary to present fairly Canadian National Railway Canadian National Railway, rail system in Canada and the United States, extending from coast to coast in Canada with many branch lines in each province and in the United States. Company's (the Company) financial position as at June June: see month. 30, 2002, December December: see month. 31 and June 30, 2001, its results of operations, changes in shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. and cash flows for the three and six months ended June 30, 2002 and 2001. These consolidated financial statements and notes have been prepared using accounting policies consistent with those used in preparing the Company's 2001 Annual Consolidated Financial Statements. While management believes that the disclosures presented are adequate to make the information not misleading, these consolidated financial statements and notes should be read in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with the Company's Annual Consolidated Financial Statements. Note 2 - Acquisition of Wisconsin Central Transportation Corporation Wisconsin Central Transportation Corporation (WC) was consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: effective October October: see month. 9, 2001, the date the Company acquired control of WC. Accordingly, the Company's results of operations for the three and six months ended June 30, 2001 exclude the results of operations of WC. For comparative purposes only, if the Company had acquired WC on January January: see month. 1, 2001, based on the historical amounts reported by WC, revenues, net income, basic and diluted earnings per share would have been $1,533 million, $236 million, $1.23 per basic share and $1.19 per diluted share, respectively, for the three months ended June 30, 2001 and $3,069 million, $518 million, $2.70 per basic share and $2.61 per diluted share, respectively, for the six months ended June 30, 2001. These pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma figures do not reflect synergies, and accordingly, do not account for any potential increases in operating income, any estimated cost savings or facilities consolidation. In the first quarter of 2002, the Company sold its investment in Tranz Rail Tranz Rail, formally Tranz Rail Holdings Limited, was the the main rail operator in New Zealand from 1995 until it was purchased by Toll Holdings in 2003. Formation Holdings Limited (Tranz Rail), for net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of $68 million. The Company had acquired Tranz Rail, a company which operates a 2,400- route mile freight The price or compensation paid for the transportation of goods by a carrier. Freight is also applied to the goods transported by such carriers. The liability of a carrier for freight damaged, lost, or destroyed during shipment is determined by contract, statute, or and passenger rail business in New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. , through its acquisition of WC, and had accounted for it as "available for sale" in accordance with the Financial Accounting Standards Board's (FASB FASB See: Financial Accounting Standards Board FASB See Financial Accounting Standards Board (FASB). ) Emerging Issues Task Force (EITF EITF Emerging Issues Task Force EITF Edinburgh International Television Festival EITF Europe International Taekwon-Do Federation ) 87-11, "Allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as of Purchase Price to Assets to be Sold." The difference between the carrying amount of the investment and the proceeds from sale was not significant. Note 3 - Special charge In the second quarter of 2001, the Company recorded a charge of $98 million, $62 million after tax, for the reduction of 690 positions by the end of 2002. The charge included severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when and other payments to be made to affected employees. Note 4 - Other income (loss) In June 2001, the Company recorded a charge of $99 million, $71 million after tax, to write down its net investment in 360networks Inc. In the first quarter of 2001, the Company recorded a gain of $101 million, $73 million after tax, from the sale of its 50 percent interest in the Detroit River Tunnel Company (DRT DRT Dead right there Medtalk A macabre adjective referring to a Pt who has been clinical kaputt long enough to minimize the likelihood of resuscitation ). The DRT is a 1.6- mile rail-only tunnel crossing the Canada-U.S. border between Detroit and Windsor, Ontario Windsor is the southernmost city in Canada and lies at the western end of the heavily populated Quebec City-Windsor Corridor. Windsor is located directly south of Detroit and is separated from that city by the Detroit River. The city has views of the Detroit skyline. . Note 5 - Income taxes In June 2001, the Company recorded a reduction of $78 million to its net deferred income tax liability resulting from the enactment of lower corporate tax rates in Canada. As a result, for the three and six months ended June 30, 2001, a deferred income tax recovery of $110 million was recorded in the Consolidated statement of income and a deferred income tax expense of $32 million was recorded in Other comprehensive income. Note 6 - Financing activities Revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facilities The Company has U.S.$1,000 million revolving credit facilities that expire expire /ex·pire/ (ek-spi´er) 1. to exhale. 2. to die. ex·pire v. 1. To breathe one's last breath; die. 2. To exhale. in March 2003. The credit facility agreements contain customary financial covenants with which the Company has been in full compliance since the inception INCEPTION. The commencement; the beginning. In making a will, for example, the writing is its inception. 3 Co. 31 b; Plowd. 343. Vide Consummation; Progression. of the agreements. At June 30, 2002, the Company had entirely repaid its borrowings of U.S.$172 million (Cdn$273 million) outstanding at December 31, 2001. At June 30, 2002, letters of credit under the revolving credit facilities amounted to $292 million. Commercial paper The Company has a commercial paper program, which is backed by a portion of its revolving credit facilities, enabling it to issue commercial paper up to a maximum aggregate principal amount of $600 million, or the U.S. dollar equivalent. The revolving credit facilities will mature within the next twelve months and while the Company's intent is to renew the existing revolving credit facilities, the refinancing Refinancing An extension and/or increase in amount of existing debt. has not been renegotiated and, as such, the outstanding balance of U.S.$209 million (Cdn$317 million) of commercial paper has been included in the current portion of long-term debt Current Portion Of Long-Term Debt A portion of the balance sheet that represents the total amount of long-term debt that must be paid within the next year. The balance sheet has a liability section, which is broken down into long-term and current debt. at June 30, 2002. Accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. The Company has a revolving agreement, expiring ex·pire v. ex·pired, ex·pir·ing, ex·pires v.intr. 1. To come to an end; terminate: My membership in the club has expired. 2. in June 2003, to sell eligible freight trade receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed up to a maximum of $350 million of receivables outstanding at any point in time. At June 30, 2002, pursuant to the agreement, $168 million and U.S.$113 million (Cdn$171 million) had been sold on a limited recourse Limited recourse A term describing a type of loan in which the lender has limited or no claim against the parent company if the collateral is insufficient to repay the debt. See:Nonrecourse. basis reflecting no change in the level of accounts receivable sold since December 31, 2001. Note 7 - Termination The point where a line, channel or circuit ends. See SCSI termination and hybrid. of conversion rights of 5.25% Convertible preferred securities ("Securities") On May 6, 2002, the Company announced that it had met the conditions required to terminate Terminate (terminat.exe) was a shareware modem terminal and host program for MS-DOS and compatible operating systems developed from the early to the late 1990s by the Dane Bo Bendtsen. The last release (5. the Securities holders' right to convert their Securities into common shares of the Company, and set the conversion termination date termination date, n See expiration date. as July July: see month. 3, 2002. The conditions were met when the Company's common share price exceeded 120% of the conversion price of U.S.$38.48 per share (as adjusted, following the Company's two-for-one common stock split in September September: see month. 1999) for a specified spec·i·fy tr.v. spec·i·fied, spec·i·fy·ing, spec·i·fies 1. To state explicitly or in detail: specified the amount needed. 2. To include in a specification. 3. period, and all accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. on the Securities had been paid. As of June 30, 2002, approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. U.S.$1 million principal amount of the Securities were surrendered for conversion into common shares. On July 3, 2002, the closing price of the Company's common shares exceeded the conversion price of U.S.$38.48 per share. As a result, Securities that had not been previously surrendered for conversion were converted, resulting in the issuance of approximately 6 million common shares of the Company. Note 8 - Derivative instruments Derivative instruments Contracts such as options and futures whose price is derived from the price of an underlying financial asset. At June 30, 2002, a portion of the Company's fuel requirement is being hedged hedge n. 1. A row of closely planted shrubs or low-growing trees forming a fence or boundary. 2. A line of people or objects forming a barrier: a hedge of spectators along the sidewalk. using derivative instruments that are carried at market value on the balance sheet. These fuel hedges are accounted for as cash flow hedges A cash flow hedge is a hedge of the exposure to the variability of cash flow that
Note 9 - Commitments At June 30, 2002, the Company had commitments to acquire railroad ties, rail, freight cars and locomotives This is a list of locomotives (classes, or individual locomotives) that currently have articles in Wikipedia.
Note 10 - Net income and earnings per share In addition to the consolidation of the WC results of operations for the three and six months ended June 30, 2002 as explained in Note 2, the comparability of the results of operations for the three and six months ended June 30, 2002 and 2001 is also impacted by the following items:
Three months ended Six months ended
June 30 June 30
---------------------- ------------------------
2002 2001 2001 2002 2001 2001
pro pro
forma(1) forma(1)
----------------------------------------------------------------------
(In millions) (Unaudited)
Income before income
taxes, excluding
undernoted items $ 422 $ 375 $ 403 $ 770 $ 691 $ 729
Income tax expense (142) (135) (144) (260) (249) (261)
----------------------------------------------------------------------
Adjusted net
income 280 240 259 510 442 468
Undernoted
items, net of tax:
Special charge
for workforce
reductions - (62) (62) - (62) (62)
Write-down of net
investment in
360networks Inc. - (71) (71) - (71) (71)
Deferred income tax
recovery - 110 110 - 110 110
Gain on sale of
Detroit River
Tunnel Company - - - - 73 73
----------------------------------------------------------------------
- (23) (23) - 50 50
Net income $ 280 $ 217 $ 236 $ 510 $ 492 $ 518
----------------------------------------------------------------------
----------------------------------------------------------------------
The following table provides a reconciliation between basic and
diluted earnings per share:
Three months ended Six months ended
June 30 June 30
--------------------- ------------------------
2002 2001 2001 2002 2001 2001
pro pro
forma(1) forma(1)
----------------------------------------------------------------------
(In millions, (Unaudited)
except per share data)
Net income $ 280 $ 217 $ 236 $ 510 $ 492 $ 518
Income impact
on assumed
conversion of
preferred
securities 3 3 3 6 6 6
----------------------------------------------------------------------
$ 283 $ 220 $ 239 $ 516 $ 498 $ 524
Weighted-average
shares
outstanding 193.9 192.0 192.0 193.5 191.7 191.7
Effect of dilutive
securities and
stock options 9.4 8.9 8.9 9.6 8.7 8.7
----------------------------------------------------------------------
Weighted-average
diluted shares
outstanding 203.3 200.9 200.9 203.1 200.4 200.4
Basic earnings
per share $ 1.44 $ 1.13 $ 1.23 $ 2.64 $ 2.57 $ 2.70
Diluted
earnings per
share $ 1.39 $ 1.10 $ 1.19 $ 2.54 $ 2.49 $ 2.61
----------------------------------------------------------------------
----------------------------------------------------------------------
(1) The pro forma figures reflect the Company's results of operations
as if the Company had acquired WC on January 1, 2001.
Note 11 - Stock-based compensation expense Compensation expense for certain performance-based stock-option awards under the Company's various stock option plans is determined by the options' intrinsic value Intrinsic Value 1. The value of a company or an asset based on an underlying perception of the value. 2. For call options, this is the difference between the underlying stock's price and the strike price. in accordance with Accounting Principles Board The Accounting Principles Board (APB) is the former authoritative body of the American Institute of Certified Public Accountants (AICPA). It was created by the American Institute of Certified Public Accountants in 1959 and issued pronouncements on accounting principles until 1973, Opinion (APB APB See Accounting Principles Board (APB). ) 25, "Accounting for Stock Issued to Employees," and related interpretations. Had compensation expense been determined based upon fair values at the date of grant for awards under all plans, consistent with the methods of Statement of Financial Accounting Standards (SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System ) No.123, "Accounting for Stock-Based Compensation," the Company's net income and earnings per share for the three and six months ended June 30, 2002 and 2001 would have been as follows:
Three months ended Six months ended
June 30 June 30
------------------ ----------------
2002 2001 2002 2001
----------------------------------------------------------------------
Net income (in millions) $ 273 $ 212 $ 497 $ 482
Basic earnings per share $ 1.41 $ 1.10 $ 2.57 $ 2.51
Diluted earnings per share $ 1.36 $ 1.07 $ 2.48 $ 2.44
----------------------------------------------------------------------
----------------------------------------------------------------------
These amounts include compensation cost as calculated using the
Black-Scholes option-pricing model with the following assumptions:
Three and six months ended
June 30
----------------------------------------------------------------------
2002 2001
----------------------------------------------------------------------
Expected option life (years) 7.0 7.0
Risk-free interest rate 5.79% 5.36%
Expected stock price volatility 30% 30%
Average dividend per share $ 0.86 $ 0.78
----------------------------------------------------------------------
----------------------------------------------------------------------
Three months ended Six months ended
June 30 June 30
------------------ -----------------
2002 2001 2002 2001
----------------------------------------------------------------------
Weighted average fair value
of options granted $ 30.61 $ 24.54 $ 30.98 $ 18.76
----------------------------------------------------------------------
----------------------------------------------------------------------
CANADIAN NATIONAL RAILWAY COMPANY
SELECTED RAILROAD STATISTICS (U.S. GAAP)
----------------------------------------------------------------------
----------------------------------------------------------------------
Three months ended Six months ended
June 30 June 30
------------------ -----------------
2002 2001(1) 2002 2001(1)
----------------------------------------------------------------------
(Unaudited)
Rail operations
Freight revenues ($ millions) 1,499 1,344 2,951 2,687
Gross ton miles (millions) 78,835 73,077 153,990 147,455
Revenue ton miles (RTM)
(millions) 40,332 38,104 79,621 77,358
Route miles (includes Canada
and the U.S.) 17,837 15,479 17,837 15,479
Operating expenses
per RTM (cents) (2) 2.63 2.49 2.72 2.53
Freight revenue
per RTM (cents) 3.72 3.53 3.71 3.47
Carloads (thousands) 1,059 947 2,058 1,899
Freight revenue
per carload ($) 1,415 1,419 1,434 1,415
Diesel fuel consumed (Liters
in millions) 350 328 713 682
Average fuel price ($/Liter) 0.32 0.36 0.31 0.37
Revenue ton miles per liter
of fuel consumed 115 116 112 113
Gross ton miles per liter of
fuel consumed 225 223 216 216
Diesel fuel consumed (U.S.
gallons in millions) 92 87 188 180
Average fuel price ($/U.S.
gallon) 1.20 1.30 1.18 1.36
Revenue ton miles per U.S.
gallon of fuel consumed 438 438 424 430
Gross ton miles per U.S.
gallon of fuel consumed 857 840 819 819
Locomotive bad order
ratio (%) (3) 6.8 7.0 6.9 7.5
Freight car bad order
ratio (%) 6.0 5.4 6.1 5.9
----------------------------------------------------------------------
Productivity
Operating ratio (%) (2) 68.4 68.1 70.7 70.3
Freight revenue per route
mile ($thousands) 84 87 165 174
Revenue ton miles per route
mile (thousands) 2,261 2,462 4,464 4,998
Freight revenue per average
number of employees
($thousands) 64 60 129 122
Revenue ton miles per
average number of employees
(thousands) 1,720 1,694 3,478 3,509
----------------------------------------------------------------------
Employees
Number at end of period 23,708 22,817 23,708 22,817
Average number during period 23,454 22,499 22,895 22,047
Labor and fringe benefits
expense per RTM (cents) 1.07 0.97 1.12 0.97
Injury frequency rate per
200,000 person hours 2.6 4.0 3.0 4.3
Accident rate per million
train miles 2.1 2.0 2.1 1.8
----------------------------------------------------------------------
Financial
Debt to total capitalization
ratio (% at end of period) 41.7 39.3 41.7 39.3
Return on assets (% at end
of period) 1.6 1.5 3.0 3.4
----------------------------------------------------------------------
----------------------------------------------------------------------
(1) 2001 data exclude WC which was acquired and consolidated effective
October 9, 2001.
(2) 2001 figures exclude special charge.
(3) In 2002, the Company expanded its measure of bad order locomotives
to include all those not available for service,including on-line
failures. The 2001 figures have been restated accordingly.
CANADIAN NATIONAL RAILWAY COMPANY
SUPPLEMENTARY INFORMATION (U.S. GAAP)
----------------------------------------------------------------------
----------------------------------------------------------------------
Three months ended Six months ended
June 30 June 30
------------------------ ------------------------
Variance Variance
2002 2001(1) Fav 2002 2001(1) Fav
(Unfav) (Unfav)
----------------------------------------------------------------------
(Unaudited)
Revenue ton miles
(millions)
Petroleum and
chemicals 7,357 5,745 28% 14,684 12,118 21%
Metals and
minerals 3,158 2,736 15% 6,438 5,094 26%
Forest
products 8,570 7,521 14% 16,692 14,506 15%
Coal 3,609 4,058 (11%) 6,914 7,994 (14%)
Grain and
fertilizers 9,282 10,492 (12%) 19,113 22,951 (17%)
Intermodal 7,442 6,773 10% 14,071 13,205 7%
Automotive 914 779 17% 1,709 1,490 15%
---------------------------------- ----------------
40,332 38,104 6% 79,621 77,358 3%
Freight revenue
/ RTM (cents)
Total freight
revenue per RTM 3.72 3.53 5% 3.71 3.47 7%
Business units:
Petroleum and
chemicals 3.68 3.69 - 3.70 3.66 1%
Metals and
minerals 4.37 4.28 2% 4.04 4.20 (4%)
Forest
products 3.90 3.58 9% 3.95 3.54 12%
Coal 2.24 2.17 3% 2.29 2.16 6%
Grain and
fertilizers 2.75 2.62 5% 2.74 2.60 5%
Intermodal 3.51 3.60 (3%) 3.52 3.64 (3%)
Automotive 17.40 17.84 (2%) 18.14 17.85 2%
---------------------------------- ---------------
Carloads
(thousands)
Petroleum and
chemicals 146 123 19% 291 257 13%
Metals and
minerals 104 67 55% 190 126 51%
Forest
products 151 124 22% 301 243 24%
Coal 127 128 (1%) 247 266 (7%)
Grain and
fertilizers 135 144 (6%) 277 298 (7%)
Intermodal 312 282 11% 585 555 5%
Automotive 84 79 6% 167 154 8%
---------------------------------- ---------------
1,059 947 12% 2,058 1,899 8%
Freight revenue /
carload (dollars)
Total freight
revenue per
carload 1,415 1,419 - 1,434 1,415 1%
Business
units:
Petroleum and
chemicals 1,856 1,724 8% 1,869 1,724 8%
Metals and
minerals 1,327 1,746 (24%) 1,368 1,698 (19%)
Forest
products 2,212 2,169 2% 2,189 2,115 3%
Coal 638 688 (7%) 640 650 (2%)
Grain and
fertilizers 1,889 1,910 (1%) 1,892 2,000 (5%)
Intermodal 837 865 (3%) 848 867 (2%)
Automotive 1,893 1,759 8% 1,856 1,727 7%
----------------------------------------------------------------------
----------------------------------------------------------------------
(1) 2001 data exclude WC which was acquired and consolidated effective
October 9, 2001.
CANADIAN NATIONAL RAILWAY COMPANY
SUPPLEMENTARY INFORMATION
PRO FORMA CONSOLIDATED STATEMENT OF INCOME (U.S. GAAP)
----------------------------------------------------------------------
----------------------------------------------------------------------
(In millions, except per share data)
Three months ended Six months ended
June 30 June 30
------------------------ ------------------------
2002 2001 Variance 2002 2001 Variance
pro Fav pro Fav
forma(1) (Unfav) forma(1) (Unfav)
----------------------------------------------------------------------
(Unaudited)
Revenues
Petroleum and
chemicals $ 271 $ 234 16% $ 544 $ 488 11%
Metals and
minerals 138 144 (4%) 260 264 (2%)
Forest
products 334 329 2% 659 635 4%
Coal 81 96 (16%) 158 188 (16%)
Grain and
fertilizers 255 290 (12%) 524 626 (16%)
Intermodal 261 251 4% 496 495 -
Automotive 159 139 14% 310 266 17%
Other items 52 50 4% 109 107 2%
---------------------------------- ----------------
1,551 1,533 1% 3,060 3,069 -
Operating expenses
Labor and fringe
benefits 430 415 (4%) 891 840 (6%)
Purchased
services 143 141 (1%) 280 287 2%
Depreciation and
amortization 144 141 (2%) 285 283 (1%)
Fuel 114 132 14% 226 287 21%
Equipment rents 92 83 (11%) 179 166 (8%)
Material 57 58 2% 118 131 10%
Operating taxes 42 39 (8%) 83 85 2%
Casualty and
other 39 36 (8%) 102 86 (19%)
Special charge - 98 100% - 98 100%
---------------------------------- ----------------
1,061 1,143 7% 2,164 2,263 4%
Operating income 490 390 26% 896 806 11%
Interest
expense (91) (104) (187) (211)
Other income
(loss) 23 (80) 61 38
----------------------------------- ----------------
Income before
income taxes 422 206 770 633
Income tax
(expense)
recovery (142) 30 (260) (115)
----------------------------------- ----------------
Net income $ 280 $ 236 $ 510 $ 518
----------------------------------------------------------------------
----------------------------------------------------------------------
Operating ratio
(excluding
special charge) 68.4% 68.2% (0.2) 70.7% 70.5% (0.2)
----------------------------------------------------------------------
----------------------------------------------------------------------
Diluted earnings
per share $ 1.39 $ 1.19 $ 2.54 $ 2.61
Adjusted diluted
earnings
per share (2) $ 1.39 $ 1.30 $ 2.54 $ 2.36
Diluted
weighted-average
number of
shares 203.3 200.9 203.1 200.4
----------------------------------------------------------------------
----------------------------------------------------------------------
(1) The pro forma figures reflect the Company's results of operations
as if the Company had acquired WC on January 1, 2001.
(2) 2001 excludes the gain on sale of DRT, the special charge for
workforce reductions, the charge to write down the net investment
in 360networks Inc., and the deferred income tax recovery
resulting from the enactment of lower corporate tax rates in
Canada.
CANADIAN NATIONAL RAILWAY COMPANY
SUPPLEMENTARY PRO FORMA INFORMATION (U.S. GAAP)
----------------------------------------------------------------------
----------------------------------------------------------------------
Three months ended Six months ended
June 30 June 30
------------------------ ------------------------
2002 2001 Variance 2002 2001 Variance
pro Fav pro Fav
forma(1) (Unfav) forma(1) (Unfav)
----------------------------------------------------------------------
(Unaudited)
Revenue ton miles
(millions)
Petroleum and
chemicals 7,357 6,039 22% 14,684 12,738 15%
Metals and
minerals 3,158 3,527 (10%) 6,438 6,741 (4%)
Forest
products 8,570 8,384 2% 16,692 16,279 3%
Coal 3,609 4,381 (18%) 6,914 8,644 (20%)
Grain and
fertilizers 9,282 10,736 (14%) 19,113 23,444 (18%)
Intermodal 7,442 6,823 9% 14,071 13,305 6%
Automotive 914 781 17% 1,709 1,493 14%
---------------------------------- -----------------
40,332 40,671 (1%) 79,621 82,644 (4%)
Freight revenue
/ RTM (cents)
Total freight
revenue per RTM 3.72 3.65 2% 3.71 3.58 4%
Business
units:
Petroleum and
chemicals 3.68 3.87 (5%) 3.70 3.83 (3%)
Metals and
minerals 4.37 4.08 7% 4.04 3.92 3%
Forest
products 3.90 3.92 (1%) 3.95 3.90 1%
Coal 2.24 2.19 2% 2.29 2.17 6%
Grain and
fertilizers 2.75 2.70 2% 2.74 2.67 3%
Intermodal 3.51 3.68 (5%) 3.52 3.72 (5%)
Automotive 17.40 17.80 (2%) 18.14 17.82 2%
---------------------------------- -----------------
Carloads
(thousands)
Petroleum and
chemicals 146 131 11% 291 275 6%
Metals and
minerals 104 113 (8%) 190 208 (9%)
Forest products 151 155 (3%) 301 309 (3%)
Coal 127 137 (7%) 247 285 (13%)
Grain and
fertilizers 135 152 (11%) 277 312 (11%)
Intermodal 312 296 5% 585 583 -
Automotive 84 79 6% 167 154 8%
---------------------------------- ----------------
1,059 1,063 - 2,058 2,126 (3%)
Freight revenue /
carload (dollars)
Total freight
revenue
per carload 1,415 1,395 1% 1,434 1,393 3%
Business units:
Petroleum and
chemicals 1,856 1,786 4% 1,869 1,775 5%
Metals and
minerals 1,327 1,274 4% 1,368 1,269 8%
Forest
products 2,212 2,123 4% 2,189 2,055 7%
Coal 638 701 (9%) 640 660 (3%)
Grain and
fertilizers 1,889 1,908 (1%) 1,892 2,006 (6%)
Intermodal 837 848 (1%) 848 849 -
Automotive 1,893 1,759 8% 1,856 1,727 7%
----------------------------------------------------------------------
----------------------------------------------------------------------
(1) The pro forma data has been prepared assuming the Company had
acquired WC on January 1, 2001.
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