Canadian National Posts Strong Full-Year 2000 Results.Business Editors MONTREAL--(BUSINESS WIRE)--Jan. 23, 2001 CN (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. )(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :CNR See riser card. CNR - Communication and Network Riser .) Fourth-Quarter 2000 Net Income Rises 11 Per Cent CENT, money. A copper coin of the United States of the value of ten mills; ten of them are equal to a dime, and one hundred, to one dollar. Each cent is required to contain one hundred and sixty-eight grains. Act of January 18th, 1837, 4 Sharsw. cont. of Story',s L. U. S. 2524. to $237 Million; Operating Ratio Operating Ratio A ratio that shows the efficiency of management by comparing operating expense to net sales: for the Quarter Improves by 2.4 Points to 68.3 Per Cent 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 today reported fourth-quarter 2000 net income of $237 million, an 11 per cent increase over year-earlier net income of $213 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: "The quarter capped a strong year for CN. We met or exceeded our key objectives for 2000 - four per cent revenue growth, a 69.6 per cent operating ratio and $386 million in free cash flow, excluding the effects of the Company's 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. program. In addition, we continued the flawless integration of CN and Illinois Illinois, river, United States Illinois, river, 273 mi (439 km) long, formed by the confluence of the Des Plaines and Kankakee rivers, NE Ill., and flowing SW to the Mississippi at Grafton, Ill. It is an important commercial and recreational waterway. Central." 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 quarter ended Dec. 31, 2000, were $1.20, a 17 per cent improvement over diluted earnings per share of $1.03 for the comparable period of 1999. 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 the final quarter of 2000 rose eight per cent to $441 million, while CN's operating ratio improved by 2.4 points in the quarter to 68.3 per cent. Revenue for fourth-quarter 2000 was relatively flat at $1,393 million; carloads were also essentially flat at 949 thousand. 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. declined three per cent to $952 million, with broad-based broad-based Of or relating to an index or average that provides a good representation of the overall market. The S&P 500 and NYSE Composite are generally regarded as broad-based stock indexes, while the popular Dow Jones Industrial Average is biased cost controls offsetting a significant increase in fuel prices. Tellier said: "CN turned in a satisfactory performance during the final quarter of 2000 in the face of a progressively slowing North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. economy. We more than compensated compensated /com·pen·sat·ed/ (kom´pen-sa?tid) counterbalanced; offset. for the softer revenue performance with strong cost controls and improvements in asset utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be . As a result, the Company generated solid increases in operating and net income." Three business units recorded revenue growth in the fourth quarter of 2000: intermodal in·ter·mod·al adj. Relating to transportation by more than one means of conveyance, as by truck and rail: intermodal transport. (19 per cent); petroleum and chemicals (six per cent); and forest products (five per cent). Automotive revenue was flat. Three business units experienced lower revenues: coal (19 per cent); metals and minerals (seven per cent); and grain and fertilizers (three per cent). Tellier said: "CN's expense performance during the quarter continued to benefit from the railroad's 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 plan. The discipline of the plan helped CN to recover quickly from adverse winter weather conditions during the quarter and helped us reduce overall operating expenses by three per cent despite a 32 per cent increase in fuel expense. All-in-all, expenses declined in the majority of expense categories." Net income for the year 2000 was $879 million, excluding a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. , $58 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. gain (28 cents 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) related to the exchange of CN's minority equity investments for common shares in 360networks Inc. Including this item, net income for the year was $937 million. For 1999, net income was $746 million, excluding a $5 million after-tax cumulative effect of changes in accounting policy (three cents per diluted share). Including this item, net income was $751 million. Diluted earnings per share for 2000 were $4.39, excluding the one-time gain. Including it, diluted earnings per share were $4.67. For 1999, diluted earnings per share were $3.71, excluding the accounting policy changes. Including them, diluted earnings per share were $3.74. Operating income for 2000 rose 12 per cent to $1,648 million. CN's operating ratio for the year was 69.6 per cent, an improvement of 2.4 points. Revenue for 2000 increased four per cent to $5,428 million, with carloads also rising four per cent to 3,796 thousand. Five business units recorded increased revenues: automotive (16 per cent); intermodal (13 per cent); grain and fertilizers (seven per cent); petroleum and chemicals (two per cent); and forest products (one per cent). Revenues declined for coal (18 per cent) and metals and minerals (two per cent). Operating expenses for 2000 were essentially flat at $3,780 million despite a 45 per cent rise in fuel expense and seven per cent increase in depreciation and amortization expense. These increases were partially offset by reductions in all other expense categories. 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 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. 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). ). CN's senior executive officers will speak to financial analysts tomorrow, Jan. 24, 2001, about the Company's fourth-quarter and full-year 2000 results. A live Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the broadcast of CN's New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of analysts' presentation will be available at CN's web site, www.cn.ca, starting at 10.30 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy . Please access the web site prior to the presentation to install any necessary software. Following the broadcast, an Internet replay will also be available at CN's site. A copy of the slide presentation to analysts will be on CN's web site Jan. 24 at 10.30 a.m. EST. To retrieve To call up data that has been stored in a computer system. When a user queries a database, the data are retrieved into the computer first and then transmitted to the screen. (language) Retrieve it, click on "Investors" and then on "Analyst Presentation". 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 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 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. , 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. , 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)
---------------------------------------------------------------------
---------------------------------------------------------------------
(In millions except per share data)
Three months ended Year ended
December 31 December 31
------------------ -------------------
2000 1999 2000 1999
---------------------------------------------------------------------
(Unaudited)
Revenues $1,393 $1,387 $5,428 $5,236
Operating expenses 952 980 3,780 3,769
---------------------------------------------------------------------
Operating income 441 407 1,648 1,467
Interest expense (78) (74) (311) (314)
Other income (Note 4) 11 8 136 55
---------------------------------------------------------------------
Income before income
taxes and cumulative
effect of changes
in accounting policy 374 341 1,473 1,208
Income tax expense (137) (128) (536) (462)
---------------------------------------------------------------------
Income before
cumulative effect
of changes in
accounting policy 237 213 937 746
Cumulative effect
of changes in
accounting policy - - - 5
---------------------------------------------------------------------
Net income $237 $213 $937 $751
---------------------------------------------------------------------
---------------------------------------------------------------------
Earnings
per share (Note 6)
Basic earnings
per share before
cumulative effect
of changes in
accounting policy $1.24 $1.05 $4.81 $3.78
Basic earnings
per share $1.24 $1.05 $4.81 $3.81
Diluted earnings
per share before
cumulative effect
of changes in
accounting policy $1.20 $1.03 $4.67 $3.71
Diluted earnings
per share $1.20 $1.03 $4.67 $3.74
Weighted average
number of shares
Basic 191.2 202.2 195.0 197.3
Diluted 199.1 210.1 202.8 202.5
---------------------------------------------------------------------
---------------------------------------------------------------------
Certain of the 1999 comparative figures have been reclassified in
order to be consistent with the 2000 presentation.
CANADIAN NATIONAL RAILWAY COMPANY
CONSOLIDATED STATEMENT OF OPERATING INCOME (U.S. GAAP)
---------------------------------------------------------------------
---------------------------------------------------------------------
(In millions)
Three months ended Year ended
December 31 December 31
----------------------- -------------------------
Variance Variance
Fav Fav
2000 1999 (Unfav) 2000 1999 (Unfav)
---------------------------------------------------------------------
(Unaudited)
Revenues
Petroleum and
chemicals $235 $222 6% $894 $878 2%
Metals and
minerals 91 98 (7%) 392 398 (2%)
Forest
products 254 243 5% 1,008 995 1%
Coal 77 95 (19%) 328 402 (18%)
Grain and
fertilizers 305 316 (3%) 1,136 1,066 7%
Intermodal 247 208 19% 919 810 13%
Automotive 140 140 - 559 483 16%
Other items 44 65 (32%) 192 204 (6%)
---------------------------- --------------
1,393 1,387 - 5,428 5,236 4%
Operating
expenses
Labor and
fringe
benefits 374 366 (2%) 1,482 1,509 2%
Purchased
services 137 164 16% 551 569 3%
Depreciation
and
amortization 133 118 (13%) 525 490 (7%)
Equipment rents 71 80 11% 285 328 13%
Fuel 128 97 (32%) 446 308 (45%)
Material 46 55 16% 195 204 4%
Operating taxes 31 39 21% 158 172 8%
Casualty and
other 32 61 48% 138 189 27%
---------------------------- --------------
952 980 3% 3,780 3,769 -
---------------------------- --------------
Operating
income $441 $407 8% $1,648 $1,467 12%
---------------------------------------------------------------------
---------------------------------------------------------------------
Operating
ratio 68.3% 70.7% 2.4 69.6% 72.0% 2.4
---------------------------------------------------------------------
---------------------------------------------------------------------
Certain of the 1999 comparative figures have been reclassified in
order to be consistent with the 2000 presentation.
CANADIAN NATIONAL RAILWAY COMPANY
CONSOLIDATED BALANCE SHEET (U.S. GAAP)
---------------------------------------------------------------------
---------------------------------------------------------------------
(In millions)
December 31 December 31
2000 1999
---------------------------------------------------------------------
Assets
Current assets:
Cash and cash
equivalents $15 $305
Accounts receivable
(Note 2) 726 800
Material and supplies 110 115
Deferred income taxes 114 146
Other 143 149
---------------------------------------------------------------------
1,108 1,515
Properties 15,638 14,620
Other assets and deferred
charges (Note 4) 568 295
---------------------------------------------------------------------
Total assets $17,314 $16,430
---------------------------------------------------------------------
---------------------------------------------------------------------
Liabilities and
shareholders' equity
Current liabilities:
Accounts payable
and accrued charges $1,389 $1,373
Current portion of
long-term debt 434 271
Other 82 120
---------------------------------------------------------------------
1,905 1,764
Deferred income taxes 3,375 2,975
Other liabilities and
deferred credits 1,205 1,287
Long-term debt 3,886 3,948
Convertible preferred
securities 345 334
Shareholders' equity:
Common shares (Note 2) 4,349 4,597
Accumulated other
comprehensive income
(loss) (Note 5) 151 (6)
Retained earnings 2,098 1,531
---------------------------------------------------------------------
6,598 6,122
---------------------------------------------------------------------
Total liabilities and
shareholders' equity $17,314 $16,430
---------------------------------------------------------------------
---------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (U.S. GAAP)
---------------------------------------------------------------------
---------------------------------------------------------------------
(In millions)
Accumulated
Issued and other Total
Outstanding Common comprehensive Retained shareholders'
common shares shares income (loss) earnings equity
---------------------------------------------------------------------
Balance,
December
31, 1999 202.4 $4,597 $(6) $1,531 $6,122
Net income - - - 937 937
Stock
options
exercised 1.2 47 - - 47
Share
repurchase
program
(Note 2) (13.0) (295) - (234) (529)
Other
comprehensive
income
(Note 5) - - 157 - 157
Dividends - - - (136) (136)
---------------------------------------------------------------------
Balance,
December 31,
2000 190.6 $4,349 $151 $2,098 $6,598
---------------------------------------------------------------------
---------------------------------------------------------------------
Certain of the 1999 comparative figures have been reclassified in
order to be consistent with the 2000 presentation.
CANADIAN NATIONAL RAILWAY COMPANY
CONSOLIDATED STATEMENT OF CASH FLOWS (U.S. GAAP)
---------------------------------------------------------------------
---------------------------------------------------------------------
(In millions)
Year ended
December 31
---------------------
2000 1999
---------------------------------------------------------------------
Operating activities
Net income $937 $751
Non-cash items in income:
Cumulative effect of changes
in accounting policy - (5)
Depreciation and amortization 533 496
Deferred income taxes 312 417
Gain on exchange of investments (Note 4) (84) -
Other - (2)
Changes in:
Accounts receivable (Note 2) 80 (157)
Material and supplies 6 38
Accounts payable and accrued charges 32 63
Other net current assets and liabilities (36) (27)
Payments for workforce reduction (189) (219)
Other (85) (77)
---------------------------------------------------------------------
Cash provided from operating activities 1,506 1,278
---------------------------------------------------------------------
Investing activities
Net additions to properties (958) (936)
Net (costs) proceeds from disposal
of properties (13) 36
Other (10) 2
---------------------------------------------------------------------
Cash used by investing activities (981) (898)
---------------------------------------------------------------------
Dividends paid to shareholders (136) (118)
Financing activities
Issuance of long-term debt 860 456
Issuance of convertible
preferred securities - 339
Reduction of long-term debt (1,038) (1,508)
Issuance of common shares 28 440
Repurchase of common shares (Note 2) (529) -
---------------------------------------------------------------------
Cash used by financing activities (679) (273)
---------------------------------------------------------------------
Net decrease in cash (290) (11)
Cash and cash equivalents,
beginning of year 305 316
---------------------------------------------------------------------
Cash and cash equivalents, end of year $15 $305
---------------------------------------------------------------------
---------------------------------------------------------------------
Certain of the 1999 comparative figures have been reclassified in
order to be consistent with the 2000 presentation.
CANADIAN NATIONAL RAILWAY COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (U.S. GAAP)
---------------------------------------------------------------------
---------------------------------------------------------------------
Note 1 - Basis of presentation
In the opinion of management, the accompanying unaudited interim
consolidated financial statements, prepared in accordance with U.S.
generally accepted accounting principles (U.S. GAAP), contain all
adjustments (consisting of normal recurring accruals) necessary to
present fairly the Company's financial position as at December 31,
2000 and 1999, its results of operations for the three and twelve
months ended December 31, 2000 and 1999 and cash flows for the years
ended December 31, 2000 and 1999. The Company has consolidated
Illinois Central Corporation (IC) effective January 1, 1999.
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 with the
Company's Annual Consolidated Financial Statements.
Note 2 - Financing activities
On January 25, 2000, the Board of Directors of the Company
approved a share repurchase program which allowed for the repurchase
of up to 13 million common shares of the Company's common stock
pursuant to a normal course issuer bid, at prevailing market prices.
During 2000, $529 million was used to repurchase 13 million common
shares at an average price of $40.70 per share.
The Company, in 1998, entered into a five-year revolving agreement
to sell eligible freight trade receivables up to a maximum of $250
million. At December 31, 2000, pursuant to the agreement, $147 million
and U.S.$40 million (Cdn$61 million) had been sold on a limited
recourse basis compared to $147 million and U.S.$40 million (Cdn$58
million) at December 31, 1999.
Note 3 - Illinois Central Railroad Company consolidated financial
information
The Company has fully and unconditionally guaranteed certain
publicly issued debt of Illinois Central Railroad Company (ICRR).
Consequently, the Company has not presented separate financial
statements and other disclosures, other than those presented below,
because management has determined that such information is not
material to the holders of ICRR debt.
Summary financial information for ICRR, on its historical cost
basis, is presented below.
Illinois Central Railroad Company
Condensed Consolidated Statement of Income
(In millions of U.S.$)
Three months ended Year ended
December 31 December 31
--------------------------------------------
2000 1999 2000 1999
---------------------------------------------------------------------
(Unaudited)
Revenues $167 $180 $685 $662
Operating expenses 168 122 561 519
---------------------------------------------------------------------
Operating income (loss) (1) 58 124 143
Interest expense (16) (17) (64) (48)
Other income (loss) 2 (1) 37 4
---------------------------------------------------------------------
Income (loss) before
income taxes (15) 40 97 99
Income tax (expense)
recovery 10 (15) (35) (37)
---------------------------------------------------------------------
Net income (loss) $(5) $25 $62 $62
---------------------------------------------------------------------
---------------------------------------------------------------------
The 2000 and 1999 operating expenses include revised estimates
related to legal, casualty and other expenses that forms part of the
purchase accounting adjustments on consolidation.
Illinois Central Railroad Company
Condensed Consolidated Balance Sheet
(In millions of U.S.$)
December 31 December 31
2000 1999
---------------------------------------------------------------------
Assets
Current assets $98 $220
Non-current assets 1,890 1,735
---------------------------------------------------------------------
Total assets $1,988 $1,955
---------------------------------------------------------------------
---------------------------------------------------------------------
Liabilities and
shareholders' equity
Current liabilities $333 $282
Payable to affiliate 578 578
Long-term debt 409 512
Deferred income taxes 329 337
Other liabilities and reserves 202 171
Shareholders' equity 137 75
---------------------------------------------------------------------
Total liabilities and
shareholders' equity $1,988 $1,955
---------------------------------------------------------------------
---------------------------------------------------------------------
CANADIAN NATIONAL RAILWAY COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (U.S. GAAP)
---------------------------------------------------------------------
---------------------------------------------------------------------
Note 4 - Investment in 360networks Inc.
In March 2000, the Company exchanged its minority equity
investments in certain joint venture companies for 11.4 million shares
of 360networks Inc. and recorded a pre-tax gain of $84 million ($58
million, after tax).
Following the 360networks Inc. initial public offering in the
second quarter of 2000, the Company accounts for its investment in
accordance with Statement of Financial Accounting Standards (SFAS) No.
115, "Accounting for Certain Investments in Debt and Equity
Securities." The shares held have been classified as
"available-for-sale securities" whereby the investment is carried at
market value on the balance sheet as part of Other assets and deferred
charges. The change in the value of the investment has been recorded
in Other comprehensive income as an unrealized holding loss of $121
million ($88 million, after tax) for the current quarter and as an
unrealized holding gain of $129 million ($94 million, after tax) for
the current year. At the time of sale, the unrealized holding gain or
loss, net of taxes, would be reversed and reported in income. At
December 31, 2000, the market value of the Company's investment was
$216 million.
Note 5 - Comprehensive income
Three months ended Year ended
December 31 December 31
---------------------------------------------
2000 1999 2000 1999
---------------------------------------------------------------------
(In millions) (Unaudited)
Net income $237 $213 $937 $751
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 8 27 (91) 180
Unrealized foreign
exchange gain (loss)
on translation
of the net investment
in U.S. subsidiaries (1) 60 (36) 191 (202)
Unrealized holding gain
(loss) on investment in
360networks Inc.
(Note 4) (121) - 129 -
Minimum pension
liability adjustment - 2 - 2
---------------------------------------------------------------------
Other comprehensive
income (loss) before
income taxes (53) (7) 229 (20)
Income tax (expense)
recovery on other
comprehensive income
(loss) items 8 3 (72) 8
---------------------------------------------------------------------
Other comprehensive
income (loss) (45) (4) 157 (12)
---------------------------------------------------------------------
Comprehensive income $192 $209 $1,094 $739
---------------------------------------------------------------------
---------------------------------------------------------------------
(1) Includes the initial translation adjustment resulting from the
change of the functional currency of the U.S. operations not
previously considered self-sustaining.
Note 6 - Earnings per share
The following table provides a reconciliation between basic and
diluted earnings per share:
Three months ended Year ended
December 31 December 31
------------------ -------------------
2000 1999 2000 1999
---------------------------------------------------------------------
(In millions, except (Unaudited)
per share data)
Income before cumulative
effect of changes in
accounting policy $237 $213 $937 $746
Income impact on assumed
conversion of preferred
securities 2 3 11 6
---------------------------------------------
$239 $216 $948 $752
Weighted-average shares
outstanding 191.2 202.2 195.0 197.3
Effect of dilutive
securities and
stock options 7.9 7.9 7.8 5.2
---------------------------------------------
Weighted-average
diluted shares
outstanding 199.1 210.1 202.8 202.5
Basic earnings
per share before
cumulative effect
of changes in
accounting policy $1.24 $1.05 $4.81 $3.78
Diluted earnings
per share before
cumulative effect
of changes in
accounting policy $1.20 $1.03 $4.67 $3.71
---------------------------------------------------------------------
---------------------------------------------------------------------
Note 7 - Subsequent event - Share repurchase program
On January 23, 2001, the Board of Directors of the Company
approved a share repurchase program which allows for the repurchase of
up to 10 million common shares of the Company's common stock between
January 31, 2001 and January 30, 2002 pursuant to a normal course
issuer bid, at prevailing market prices.
CANADIAN NATIONAL RAILWAY COMPANY
SELECTED RAILROAD STATISTICS (U.S. GAAP)
---------------------------------------------------------------------
---------------------------------------------------------------------
Three months ended Year ended
December 31 December 31
------------------ -------------------
2000 1999 2000 1999
---------------------------------------------------------------------
(Unaudited)
Rail operations
Freight revenues
($ millions) 1,349 1,322 5,236 5,032
Gross ton miles
(millions) 72,668 72,137 288,150 274,488
Revenue ton miles
(RTM) (millions) 37,385 38,050 149,557 143,613
Route miles
(includes Canada
and the U.S.) 15,532 15,777 15,532 15,777
Operating expenses
per RTM (cents) 2.55 2.58 2.53 2.62
Freight revenue
per RTM (cents) 3.61 3.47 3.50 3.50
Carloads (thousands) 949 950 3,796 3,645
Freight revenue
per carload ($) 1,421 1,392 1,379 1,381
Diesel fuel consumed
(Liters in millions) 325 327 1,292 1,250
Average fuel price
($/Liter) 0.36 0.28 0.33 0.23
Revenue ton miles
per liter of
fuel consumed 115 116 116 115
Gross ton miles
per liter of
fuel consumed 224 221 223 220
Diesel fuel consumed
(U.S. gallons
in millions) 86 86 341 330
Average fuel price
($/U.S. gallon) 1.38 1.05 1.24 0.87
Revenue ton miles
per U.S. gallon
of fuel consumed 435 442 439 435
Gross ton miles
per U.S. gallon
of fuel consumed 845 839 845 832
Locomotive bad order
ratio (%) 6.0 6.4 6.0 6.8
Freight car bad order
ratio (%)* 4.9 5.4 5.1 5.4
---------------------------------------------------------------------
Productivity
Operating ratio (%) 68.3 70.7 69.6 72.0
Freight revenue
per route mile
($ thousands) 87 84 337 319
Revenue ton miles
per route mile
(thousands) 2,407 2,412 9,629 9,103
Freight revenue
per average number
of employees
($ thousands) 61 58 233 214
Revenue ton miles
per average number
of employees
(thousands) 1,678 1,679 6,660 6,113
---------------------------------------------------------------------
Employees
Number at end of
period 21,378 21,563 21,378 21,563
Average number
during period 22,276 22,656 22,457 23,493
Labor and fringe
benefits expense
per RTM (cents) 1.00 0.96 0.99 1.05
Injury frequency
rate per 200,000
person hours 4.8 7.5 5.5 7.3
Accident rate
per million
train miles 1.7 1.5 2.1 2.2
---------------------------------------------------------------------
Financial
Debt to total
capitalization
ratio (% at end
of period) 41.4 42.7 41.4 42.7
Return on assets
(% at end of period) ** 1.6 1.6 6.5 5.7
---------------------------------------------------------------------
---------------------------------------------------------------------
Certain of the 1999 comparative figures have been reclassified in
order to be consistent with the 2000 presentation. * 1999 figures
exclude Illinois Central Corporation. ** Income before cumulative
effect of changes in accounting policy.
CANADIAN NATIONAL RAILWAY COMPANY
SUPPLEMENTARY INFORMATION (U.S. GAAP)
---------------------------------------------------------------------
---------------------------------------------------------------------
Three months ended Year ended
December 31 December 31
------------------------------------------------------
Variance Variance
Fav Fav
2000 1999 (Unfav) 2000 1999 (Unfav)
---------------------------------------------------------------------
(Unaudited)
Revenue ton miles
(millions)
Petroleum and
chemicals 6,320 6,156 3% 24,858 24,194 3%
Metals and
minerals 2,043 2,258 (10%) 9,207 9,271 (1%)
Forest
products 6,970 6,885 1% 28,741 27,500 5%
Coal 3,575 4,422 (19%) 15,734 18,645 (16%)
Grain and
fertilizers 11,048 11,727 (6%) 42,396 38,681 10%
Intermodal 6,649 5,838 14% 25,456 22,589 13%
Automotive 780 764 2% 3,165 2,733 16%
---------------------------------------------------------------------
37,385 38,050 (2%) 149,557 143,613 4%
Freight revenue
/ RTM (cents)
Petroleum and
chemicals 3.72 3.61 3% 3.60 3.63 (1%)
Metals and
minerals 4.45 4.34 3% 4.26 4.29 (1%)
Forest
products 3.64 3.53 3% 3.51 3.62 (3%)
Coal 2.15 2.15 - 2.08 2.16 (4%)
Grain and
fertilizers 2.76 2.69 3% 2.68 2.76 (3%)
Intermodal 3.71 3.56 4% 3.61 3.59 1%
Automotive 17.95 18.32 (2%) 17.66 17.67 -
Total 3.61 3.47 4% 3.50 3.50 -
---------------------------------------------------------------------
Carloads
(thousands)
Petroleum and
chemicals 130 126 3% 512 494 4%
Metals and
minerals 56 67 (16%) 256 266 (4%)
Forest
products 119 117 2% 486 481 1%
Coal 128 147 (13%) 528 558 (5%)
Grain and
fertilizers 150 154 (3%) 567 542 5%
Intermodal 286 259 10% 1,121 994 13%
Automotive 80 80 - 326 310 5%
---------------------------------------------------------------------
949 950 - 3,796 3,645 4%
Freight revenue /
carload (dollars)
Petroleum and
chemicals 1,808 1,762 3% 1,746 1,777 (2%)
Metals and
minerals 1,625 1,463 11% 1,531 1,496 2%
Forest
products 2,134 2,077 3% 2,074 2,069 -
Coal 602 646 (7%) 621 720 (14%)
Grain and
fertilizers 2,033 2,052 (1%) 2,004 1,967 2%
Intermodal 864 803 8% 820 815 1%
Automotive 1,750 1,750 - 1,715 1,558 10%
Total 1,421 1,392 2% 1,379 1,381 -
---------------------------------------------------------------------
---------------------------------------------------------------------
Certain of the 1999 comparative figures have been reclassified in
order to be consistent with the 2000 presentation.
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