MONTREAL — Canadian National Railway Co. is hoping to rebound from last year’s challenging second quarter with analysts expecting net profits to double on a 14 per cent boost in revenues.
The Montreal-based railway is expected to report after markets close net profits of $1.08 billion, up from $545 million in the pandemic-plagued second quarter of 2020, according to financial data firm Refinitiv.
Adjusted profits are forecast to be $1.09 billion or $1.49 per diluted share.
CN’s adjusted profits a year ago were $908 million or $1.28. That was down from $1.25 billion or $1.73 per share in the second quarter of 2019.
Revenues are expected to be $3.66 billion, up from $3.21 billion last year but short of the $3.96 billion in the year prior.
The financial results come as the railway is awaiting a ruling from the U.S. Surface Transportation Board on its application for a voting trust for Kansas City Southern while its $33.6-billion takeover bid is analyzed by the regulator.
CN could be on the hook to pay the U.S. railway a US$1 billion penalty if the voting trust isn’t approved. That’s in addition to US$700 million it has agreed to pay KCS after it backed away from an agreement to be purchased by Calgary-based Canadian Pacific Railway Ltd.
This report by The Canadian Press was first published July 20, 2021.
Companies in this story: (TSX:CNR, TSX:CP)
The Canadian Press