Canadian National Reports Second-Quarter 1999 Net Income of $196 Million.MONTREAL--(BUSINESS WIRE)--July 20, 1999-- 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(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 .) (ME:CNR.) (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. ) Canadian National today reported second-quarter 1999 net income of $196 million and further improvement in its 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. and operating ratio Operating Ratio A ratio that shows the efficiency of management by comparing operating expense to net sales: . Net income for the comparable quarter of 1998 was $143 million. 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 ended June June: see month. 30, 1999, were $2.01, compared with $1.59 for the same period of 1998. Operating income for the most recent quarter was $331 million, compared with $273 million for the second quarter of 1998. CN recorded an operating ratio of 68.6 percent for the latest quarter, an improvement of 4.9 points over the performance of 73.5 percent for the second quarter of 1998. Revenue for the second quarter of 1999 rose two percent to $1,055 million from $1,030 million for the comparable period of 1998. 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. for the most recent quarter declined four percent to $724 million from $757 million for the second quarter of 1998. 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: "CN and its stakeholders Stakeholders All parties that have an interest, financial or otherwise, in a firm-stockholders, creditors, bondholders, employees, customers, management, the community, and the government. continue to benefit from our comprehensive service plan. The principal objective of the plan is to deliver a high level of customer service through consistent, scheduled rail operations. The plan also allows CN to control costs effectively and improve 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 . It was a significant factor in CN's ability to reduce expenses by four percent during the second quarter, and lower costs enabled CN to leverage its two percent revenue growth to generate better bottom-line bot·tom-line adj. 1. Concerned exclusively with costs and profits: bottom-line issues. 2. Ruthlessly realistic; pragmatic: a bottom-line political strategy. results." Automotive and forest products revenue rose strongly during the quarter and grain and grain products revenue increased after months of soft exports. Coal, 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. , and fertilizers revenue again reflected depressed Depressed A description of a market, security, or product that is experiencing weak demand and lowering prices. Notes: A depressed market, security, or product implies that prices and volume are low. There are many reasons for a depressed market, security, or product. overseas demand for metallurgical met·al·lur·gy n. 1. The science that deals with procedures used in extracting metals from their ores, purifying and alloying metals, and creating useful objects from metals. 2. coal. For the second quarter of 1999, CN's equity in the earnings of 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 Corporation (IC), less 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. interest costs associated with the acquisition of IC, increased CN's net income by $9 million, compared with $8 million for the second quarter ended June 30, 1998. CN took control of IC's operations and assets on July July: see month. 1, 1999, and commenced a step-by-step integration of CN and IC operations. Effective July 1, 1999, the financial statements of IC will be 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: with those of CN. Five business units recorded increased revenue for the second quarter of 1999: automotive (24 percent), forest products (six percent), grain and grain products (three percent), intermodal in·ter·mod·al adj. Relating to transportation by more than one means of conveyance, as by truck and rail: intermodal transport. (two percent) and industrial products (one percent). Coal, sulfur, and fertilizers revenue declined 10 percent. CN's improved expense performance for the second quarter reflected lower costs 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). , material, fuel, depreciation and amortization, operating taxes, and equipment rents. Carloads for the most recent quarter increased four percent to 644 thousand from 618 thousand for the second quarter of 1998. For the first six months of 1999, net income was $334 million, compared with first-half 1998 net income of $289 million, including the $42-million cumulative effect of change in accounting policy for pensions. Excluding the accounting policy change, net income for the first half of 1998 was $247 million. Diluted earnings per share for the first six months of 1999 were $3.43, compared with first-half 1998 diluted earnings per share of $3.28, including the accounting policy change. Excluding the change, diluted earnings per share for the first half of 1998 were $2.80. First-half 1999 net income included $12 million of after-tax income from fiber optic optic /op·tic/ (op´tik) ocular (1). op·tic or op·ti·cal adj. 1. Of or relating to the eye or vision. 2. right-of-way Right-of-way or right of way may refer to: In geography:
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. . Operating income for the latest six-month period was $567 million, compared with $457 million for the comparable period of 1998. CN's operating ratio for the first half of 1999 was 72.6 percent, an improvement of 5.5 points over the performance of 78.1 percent for the same period of 1998. For the first half of 1999, CN's equity in the earnings of IC, less after-tax interest costs associated with the acquisition of IC, increased CN's net income by $15 million, compared with $12 million for the six months ended June 30, 1998. Revenue for the latest six-month period slipped one percent to $2,073 million from $2,089 million for the same period of 1998. Four business units recorded increased revenue: automotive (18 percent), forest products (four percent), intermodal (two percent) and industrial products (one percent). Grain and grain products revenue declined by 16 percent, and coal, sulfur, and fertilizers revenue decreased eight percent. First-half 1999 operating expenses declined eight percent to $1,506 million from $1,632 million for the comparable period of 1998. For the most recent six-month period, expenses decreased in all categories except purchased services. Carloads for the first six months of 1999 rose one percent to 1,261 thousand from 1,249 thousand for the same period of 1998. 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. , 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. , 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)
-----------------------------------------------------------------
(In millions except per share data)
Three months ended Six months ended
June 30 June 30
-----------------------------------------------------------------
1999 1998 1999 1998
-----------------------------------------------------------------
(Unaudited)
Revenues $1,055 $1,030 $2,073 $2,089
Operating
expenses 724 757 1,506 1,632
-----------------------------------------------------------------
Operating
income 331 273 567 457
Interest
expense (66) (69) (132) (101)
Equity in
earnings of
Illinois Central
Corporation
(Note 2) 29 28 55 34
Other income
(loss) 8 (15) 22 -
-----------------------------------------------------------------
Income before
income taxes
and cumulative
effect of
change in
accounting
policy 302 217 512 390
Income tax
expense (106) (74) (178) (143)
-----------------------------------------------------------------
Income before
cumulative
effect of
change in
accounting
policy 196 143 334 247
Cumulative
effect of
change in
accounting
policy - - - 42
-----------------------------------------------------------------
Net income $196 $143 $334 $289
-----------------------------------------------------------------
Earnings
per share
Basic
earnings per
share before
cumulative
effect of
change in
accounting
policy $2.03 $1.61 $3.47 $2.83
Basic
earnings
per share $2.03 $1.61 $3.47 $3.31
Diluted
earnings
per share
before
cumulative
effect of
change in
accounting
policy $2.01 $1.59 $3.43 $2.80
Diluted
earnings
per share $2.01 $1.59 $3.43 $3.28
Weighted average
number of shares
Basic 96.5 89.0 96.3 87.3
Diluted 97.8 89.9 97.4 88.1
-----------------------------------------------------------------
Certain of the 1998 comparative figures have been reclassified in
order to be consistent with 1999 presentation.
CANADIAN NATIONAL RAILWAY COMPANY
CONSOLIDATED STATEMENT OF OPERATING INCOME (U.S. GAAP)
----------------------------------------------------------------
(In millions)
Three months ended Six months ended
June 30 June 30
----------------------------------------------------------------
Variance Variance
1999 1998 Fav/ 1999 1998 Fav/
(Unfav) (Unfav)
(percent) (percent)
----------------------------------------------------------------
(Unaudited)
Revenues
Industrial
products $218 $216 1 $437 $431 1
Forest
products 224 211 6 436 419 4
Grain and
grain
products 129 125 3 249 297 (16)
Coal, sulfur,
and
fertilizers 147 163 (10) 307 332 (8)
Intermodal 198 195 2 379 372 2
Automotive 122 98 24 242 205 18
Other items 17 22 (23) 23 33 (30)
----------------------------------------------------------------
1,055 1,030 2 2,073 2,089 (1)
Operating
expenses
Labor and
fringe
benefits 304 309 2 636 657 3
Material 45 60 25 106 137 23
Fuel 55 57 4 107 134 20
Depreciation
and
amortization 72 79 9 144 159 9
Operating
taxes 29 40 28 67 87 23
Equipment
rents 69 72 4 132 156 15
Purchased
services 94 90 (4) 184 168 (10)
Casualty
and other 56 50 (12) 130 134 3
---------------------------------------------------------------
724 757 4 1,506 1,632 8
---------------------------------------------------------------
Operating
income $331 $273 21 $567 $457 24
---------------------------------------------------------------
Operating
ratio 68.6 73.5 4.9 72.6 78.1 5.5
p.c. p.c. points p.c. p.c. points
---------------------------------------------------------------
Certain of the 1998 comparative figures have been reclassified in
order to be consistent with 1999 presentation.
CANADIAN NATIONAL RAILWAY COMPANY
CONSOLIDATED BALANCE SHEET (U.S. GAAP)
---------------------------------------------------------------
(In millions)
June 30 December 31 June 30
1999 1998 1998
---------------------------------------------------------------
(Unaudited) (Unaudited)
Assets
Current assets:
Cash and cash
equivalents $175 $262 $352
Accounts receivable
(Note 5) 502 399 343
Material and
supplies 137 131 163
Deferred income
taxes 109 131 159
Other 98 115 120
---------------------------------------------------------------
1,021 1,038 1,137
Properties 7,015 6,803 6,423
Investment in Illinois
Central Corporation
(Note 2) 3,706 3,821 3,566
Other assets and
deferred charges 233 290 243
---------------------------------------------------------------
Total assets $11,975 $11,952 $11,369
---------------------------------------------------------------
Liabilities and
shareholders' equity
Current liabilities:
Accounts payable
and accrued
charges $970 $1,158 $930
Current portion
of long-term
debt 85 133 136
Other 82 89 66
---------------------------------------------------------------
1,137 1,380 1,132
Deferred income
taxes 457 327 436
Other liabilities
and deferred
credits 1,118 1,205 762
Long-term debt 3,518 3,995 3,927
Shareholders'
equity:
Capitned
earnings 1,174 DERS' EQUITY
(U.S. GAAP)
--------------------- 95.9 $4,141 $6
N $(2)
----------------------------------------------
(Unaudited)
Balance,
Dece - 432
Other
comprehensi----
Balance,
June 30, 1999 1999 presentation.
CANADIAN NATIONAL RAILW (Unaudited)
Operating activities
Net inc (42)
Depreciation
and
amortization 148 160
Deferred
income taxes 158 138
Accounts payable
and accrued
cha 269 634
--------------------------------------------------------------
C (58) (48)
Finanlong-term debt (1,140) d
$175 $352
------------------------------------------------------------
Certain of the 1998 comparative figures have been reclassified ONAL RAILWAY
COMPANY
NOTES TO CONSOLIDATED FINA December 31 and June 30, 1998,
its results of l Corporation (IC)
Prior to the control of ICvestments in Common Stock." The purchase accountthe
U.S. dollar as
its functional currency. EffJune 30, 1999 includes an investment of $3,398
IC, including interest expense in the second
qu 1998 and $38
million ($22 million after tax) i comparable 1998 periods. The equity in
earnings of IC
included in the Consolidated Statement of Income repreIC assets and
liabilities. The total impact of thare by $0.13 for the quarter and $0.23 for
the
ided by IC's
management, is presented below.
Illinois Central Corporation
Condensed Consolidated Statement of Income
(In millions of U.S.$)
Th (Unaudited)
Revenues $181.1 $ 50.7 67.3 106.4 98.8
Other
income 1.8 3.1 2.8 4.3
Inter $53.9 $50.7
-----8 included a U.S.$36.5 million special charge, r June
30 December 31
$249.9
Non-current
assets 1,992.7 1,923.9
---------------------------------
Total assets $2,239.5 2,173.8
---------------------------------
Liabilities
and stockholders'
equity
Current
liabilities $314.8 $297.0
Long-term debt 538.9 557.3
Deferred income
taxes 461.2 442.8
Other
liabilities
and reserves 124.2 130.2
Stockholders'
equity 800.4 746.5
---------------------------------
Total
liabilities
and stockholders'
equity $2,239.5 $2,173.8
---------------------------------
Note 4 - Pro-forma condensed consolidated financial information
CN took control of IC on July 1, 1999 and will consolidate the
financial statements of IC beginning in the third quarter of 1999. The
following condensed consolidated financial statements reflect the
consolidation of IC assuming CN had acquired 100 percent of the stock
of IC and had assumed control on January 1, 1998. The purchase price
of IC was allocated to the assets acquired and liabilities assumed
based on their estimated fair market values. The final purchase price
allocation could differ from that reflected herein. However,
management believes the final impact on its results will not be
materially different from the amounts included in the pro-forma
condensed consolidated statement of income and balance sheet as the
majority of the purchase price will be allocated to long-lived assets
and land used for transportation purposes. The pro-forma condensed
consolidated statement of income and balance sheet include adjustments
for the consolidation of IC which do not reflect synergies, and
accordingly, do not account for any potential increases in operating
income, any estimated cost savings, facilities consolidation or
adjustments to conform accounting practices and presentation.
Pro-forma Condensed Consolidated Statement of Income
(In millions of Canadian $)
Three months ended Six months ended
June 30 June 30
-------------------------------------------------------------
1999 1998 1999 1998
-------------------------------------------------------------
(Unaudited)
Revenues $1,321 $1,291 $2,610 $2,610
Operating
expenses 934 947 1,932 2,011
--------------------------------------
Operating
income 387 344 678 599
Interest
expense (80) (82) (161) (159)
Other income
(loss) 12 (14) 28 3
--------------------------------------
Income before
income taxes
and cumulative
effect of
change in
accounting
policy 319 248 545 443
Income tax
expense (123) (93) (211) (167)
--------------------------------------
Income before
cumulative
effect of
change in
accounting
policy 196 155 334 276
Cumulative
effect of
change in
accounting
policy - - - 42
--------------------------------------
Net income $196 $155 $334 $318
--------------------------------------
Operating
ratio 70.7 73.4 74.0 77.0
p.c. p.c. p.c. p.c.
--------------------------------------
Pro-forma Condensed Consolidated Balance Sheet
(In millions of Canadian $)
June 30 December 31
1999 1998
-------------------------------------------------------------
(Unaudited)
Assets
Current assets $1,379 $1,421
Properties 14,038 14,216
Non-current
assets 344 378
---------------------------------
Total assets $15,761 $16,015
---------------------------------
Liablities
and shareholders'
equity
Current
liabilities $1,662 $1,924
Deferred income
taxes 2,683 2,647
Other liabilities
and deferred
credits 1,308 1,489
Long-term debt 4,363 4,910
Shareholders'
equity 5,745 5,045
---------------------------------
Total
liabilities
and shareholders'
equity $15,761 $16,015
---------------------------------
Note 5 - Financing activities
On June 23, 1999, the Company issued 4.6 million common shares and 4.6
million convertible preferred securities. The common shares were
issued at $91.45 per share (U.S.$62.56 per share) and the convertible
preferred securities were issued at U.S.$50 per security. Net of
underwriting fees and other issue costs, the Company received U.S.$497
million (Cdn$726 million).
The convertible preferred securities are subordinated debt securities
convertible into common shares of CN at the option of the holder at a
conversion price of U.S.$76.95 per common share, representing a
conversion rate of 0.6498 common shares for each convertible preferred
security. On or after July 1, 2002, at the option of the Company but
subject to certain conditions, the holders' rights to convert the
convertible preferred securities may be extinguished if the current
market price exceeds 120 percent of the conversion price for a certain
period. The convertible preferred securities bear interest, payable
quarterly in U.S. dollars at a rate of 5.25 percent per year and are
due on June 30, 2029.
The proceeds from the sale of common shares and convertible preferred
securities were used to repay U.S.$125.4 million (Cdn$185 million) of
commercial paper on June 23, 1999 and U.S.$310 million (Cdn$456
million) of the Company's revolving credit facility on June 25, 1999.
On July 6, 1999, the Company repaid U.S.$14 million of commercial
paper and U.S.$20 million of the revolving credit facility. During the
month of June 1999, the Company borrowed U.S.$20 million on the
revolving credit facility.
On June 25, 1998, the Company entered into a five-year revolving
agreement to sell eligible accounts receivable up to a maximum of $250
million. At June 30, 1999, pursuant to the agreement, $47 million and
U.S.$40 million (Cdn$59 million) had been sold on a limited recourse
basis compared to $150 million and U.S.$45 million (Cdn$69 million) at
December 31, 1998.
Note 6 - Comprehensive income
Three months ended Six months ended
June 30 June 30
1999 1998 1999 1998
-----------------------------------------------------------------
(In millions) (Unaudited)
Net income $196 $143 $334 $289
-------------------------------------------
Other comprehensive (loss) income:
Unrealized
foreign exchange
gain (loss) on
translation of
U.S. dollar
denominated
long-term debt
designated as
a hedge of the
IC investment 105 (91) 163 (91)
Unrealized
foreign exchange
(loss) gain on
translation of
net investment
in IC (113) 99 (176) 99
-------------------------------------------
Other
comprehensive
(loss) income
before income
taxes (8) 8 (13) 8
Income tax
recovery
(expense)
on other
comprehensive
(loss) income
items 3 (3) 5 (3)
-------------------------------------------
Other
comprehensive
(loss) income (5) 5 (8) 5
-------------------------------------------
Comprehensive
income $191 $148 $326 $294
-------------------------------------------
Note 7 - Uncertainty due to Year 2000 issue
The Year 2000 issue arises because many computerized systems use two
digits rather than four to identify a year. Date-sensitive systems may
recoar 2000 dates is processed. In a use certain dates in 1999 to
represent something other than a date. The effects of the Year 2000
issue may be experienced before, on, or after January 1, 2000, and, if
not addressed, the impact on operations and financial reporting may
range from minor errors to significant systems failure which could
affect the Company's ability to conduct normal business operations.
There can be no assurance that all aspects of the Year 2000 issue
affecting the Company, including those related to the efforts of
customers, suppliers, or other third parties, will be fully resolved.
Note 8 - Subsequent event
On July 20, 1999, the Board of Directors of the Company approved a
two-for-one common stock split which is to be effected in the form of
a stock dividend of one additional common share of CN common stock
payable for each share outstanding or held in treasury on September
27, 1999, to shareholders of record on September 23, 1999. All equity
based benefit plans reflect the issuance of additional shares or
options due to the declaration of the stock split. All share and per
share data for future periods will reflect the stock split.
CANADIAN NATIONAL RAILWAY COMPANY
SELECTED RAILROAD STATISTICS(i)
-----------------------------------------------------------------
Three months ended Six months ended
June 30 June 30
-----------------------------------------------------------------
1999 1998 1999 1998
-----------------------------------------------------------------
(Unaudited)
Rail operations
Freight
revenues
($ millions) 1,038 1,008 2,050 2,056
Gross ton
miles
(billions) 57.3 55.3 110.9 112.1
Revenue ton
miles (RTM)
(millions) 29,583 28,478 57,441 57,947
Route miles
(includes
Canada and
the U.S.) 12,837 14,226 12,837 14,226
Operating
expenses
per RTM
(cents) 2.45 2.66 2.62 2.82
Freight
revenue
per RTM
(cents) 3.51 3.54 3.57 3.55
Carloads
(thousands) 644 618 1,261 1,249
Freight
revenue
per carload ($) 1,612 1,631 1,626 1,646
Diesel fuel
consumed
(Canadian
gallons in
millions) 57 59 114 127
Average fuel
price
($/Canadian
gallon) 0.97 1.05 0.96 1.10
Revenue ton
miles per
Canadian
gallon
of fuel
consumed 519 483 504 456
Locomotive bad
order ratio
(percent) 6.4 8.2 7.2 8.3
Freight car
bad order
ratio
(percent) 5.4 2.9 5.4 2.7
---------------------------------------------------------------
Productivity
Operating
ratio
(percent) 68.6 73.5 72.6 78.1
Freight
revenue per
route mile
($ thousands) 81 71 160 145
Revenue ton
miles per
route mile
(thousands) 2,305 2,002 4,475 4,073
Freight
revenue per
average
number of
employees
($ thousands) 50 45 103 95
Revenue ton
miles per
average
number of
employees
(thousands) 1,430 1,285 2,873 2,667
---------------------------------------------------------------
Employees
Number at end
of period 21,089 22,387 21,089 22,387
Average number
during period 20,689 22,158 19,996 21,729
Labor and
fringe
benefits per
RTM (cents) 1.03 1.09 1.11 1.13
Injury
frequency
rate per
200,000
person hours 1.9 1.2 1.6 1.3
Accident rate
per million
train miles 1.7 1.1 1.6 1.4
---------------------------------------------------------------
Financial
Debt to total
capitalization
ratio (percent
at end of
period) 38.5 44.3 38.5 44.3
Return on
assets
(percent at
end of period) (ii) 2.0 1.6 3.5 2.7
---------------------------------------------------------------
(i) Excludes Illinois Central Corporation.
(ii) Income before cumulative effect of change in accounting
policy.
CANADIAN NATIONAL RAILWAY COMPANY
SUPPLEMENTARY INFORMATION(i)
---------------------------------------------------------------
Three months ended Six months ended
June 30 June 30
---------------------------------------------------------------
Variance Variance
1999 1998 Fav/ 1999 1998 Fav/
(Unfav) (Unfav)
(percent) (percent)
---------------------------------------------------------------
(Unaudited)
Revenue ton miles (millions)
Industrial
products 5,886 5,802 1 11,572 11,695 (1)
Forest
products 6,241 5,749 9 12,051 11,558 4
Grain and
grain
products 4,356 4,336 - 8,528 10,119 (16)
Coal, sulfur,
and
fertilizers 6,754 6,927 (2) 13,350 13,559 (2)
Intermodal 5,655 5,088 11 10,616 9,779 9
Automotive 691 576 20 1,324 1,237 7
---------------------------------------------------------------
29,583 28,478 4 57,441 57,947 (1)
Freight revenue / RTM (cents)
Industrial
products 3.70 3.72 (1) 3.78 3.69 2
Forest
products 3.59 3.67 (2) 3.62 3.63 -
Grain and
grain
products 2.96 2.88 3 2.92 2.94 (1)
Coal, sulfur,
and
fertilizers 2.18 2.35 (7) 2.30 2.45 (6)
Intermodal 3.50 3.83 (9) 3.57 3.80 (6)
Automotive 17.66 17.01 4 18.28 16.57 10
Total 3.51 3.54 (1) 3.57 3.55 1
---------------------------------------------------------------
Carloads (thousands)
Industrial
products 121 120 1 237 246 (4)
Forest
products 91 88 3 181 178 2
Grain and
grain
products 50 47 6 95 104 (9)
Coal, sulfur,
and
fertilizers 97 107 (9) 199 215 (7)
Intermodal 205 190 8 391 371 5
Automotive 80 66 21 158 135 17
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644 618 4 1,261 1,249 1
Freight revenue / carload (dollars)
Industrial
products 1,802 1,800 - 1,844 1,752 5
Forest
products 2,462 2,398 3 2,409 2,354 2
Grain and
grain
products 2,580 2,660 (3) 2,621 2,856 (8)
Coal, sulfur,
and
fertilizers 1,515 1,523 (1) 1,543 1,544 -
Intermodal 966 1,026 (6) 969 1,003 (3)
Automotive 1,525 1,485 3 1,532 1,519 1
Total 1,612 1,631 (1) 1,626 1,646 (1)
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(i) Excludes Illinois Central Corporation.
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