Canadian National Railway (CNR), the country’s biggest railway, has reported that its second-quarter net income fell by 12% to $1.17 billion U.S. from $1.33 billion U.S. a year earlier.
The Montreal-based rail operator said that its revenues in Q2 declined 7% to $4.06 billion from $4.34 billion in the same period of 2022.
CN Rail announced earnings per share of $1.76, down 9% from $1.93 a year ago. The result was below the $1.82 that analysts had expected, according to Refinitiv data.
The company also lowered its forward guidance for the remainder of this year, saying it now expects flat to slightly negative earnings for all of 2023 instead of mid-single-digit growth.
CN Rail blamed both the poor Q2 results and darkening outlook on a slowing economy.
Lower consumer demand as well as disruptions caused by wildfires reduced freight service during Q2, particularly for shipments of lumber products, the company said.
A nearly two-week strike at ports across British Columbia earlier in July also halted freight flows through West Coast terminals, adding to the railway’s problems.
CN Rail’s stock has declined 4% this year to trade at $156.38 per share.
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