MONTREAL, Que. — Canadian National (CN) Railway has reported a 29% drop in earnings during the second quarter of 2007 and has also adjusted its full-year projections as it struggles to recover from a labour dispute, weather disruptions and two rail line blockades.
CN, which initially projected a 10% growth in earnings per share, has slashed that prediction in half. It says it was impacted by flooding in B.C. and two recent rail line blockages by native groups. It is also still reeling from a February strike that saw 2,800 conductors and yard service employees walk off the job.
Second quarter earnings fell to $516 million compared to $729 million the same time last year. Revenue, however, rose 1% to $2.03 billion.
“I would characterize this quarter as a bounce-back quarter,” said chief executive officer Hunter Harrison, , during a conference call.
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