Q2 2024 Canadian National Railway Co Earnings Call Transcript
Key Points
- Canadian National Railway Co (CNI) reported a 7% increase in revenues for Q2 2024, driven by stronger pricing, higher volume, and favorable foreign exchange.
- The company saw a 22% improvement in the accident frequency ratio, indicating better safety performance.
- The Southern and Eastern regions posted strong operational performance, with car velocity trending towards 220 miles per day in July.
- Canadian grain shipments increased by 24%, contributing to a 7% rise in grain and fertilizer revenues.
- The company is making progress with CN-specific growth initiatives, including the growth of the sand franchise and the rebuild of the international portfolio.
- The Vancouver corridor experienced significant disruptions due to planned and unplanned maintenance work, impacting overall velocity and labor productivity.
- International intermodal volumes were negatively affected by concerns over potential labor disruptions, leading to rerouting of vessels to U.S. ports.
- The company revised its full-year guidance to mid to high single-digit EPS growth due to ongoing labor uncertainties and traffic diversions.
- Fuel expenses increased by 11% year-over-year, driven by higher gross ton miles and increased fuel prices.
- The duty and rest period rules in Canada have created crew scheduling challenges, leading to higher unproductive labor costs.
Good afternoon. My name is Julianne and I will be your operator today. All participants are now in a listen-only mode.
At this time I would like to turn the call over to Stacy Alderson, CN's Assistant Vice President of Investor Relations. Ladies and gentlemen, Ms. Alderson.
Thank you, Julianne. (spoken in foreign language) Good afternoon, everyone, and thank you for joining us for CN's Second Quarter 2024 Financial and Operating Results Conference Call.
Before we begin, I'd like to draw your attention to the forward-looking statements and additional legal information available at the beginning of the presentation. As a reminder, today's conference call contains certain projections and other forward-looking statements within the meaning of the US and Canadian securities laws.
These statements are subject to risks and uncertainties that may cause actual results to differ materially from those expressed or implied in these statements.
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