COMPETITION WATCH: Strike hits CNs bottom line
MONTREAL, Que. — Canadian National (CN) Railway saw its first quarter earnings plunge 10% thanks largely to a strike by train crews and severe winter weather.
The company still recorded a profit of $324 million in the first three months of 2007, however. CN previously announced it expected a 5-10% drop in earnings compared to last year.
Revenue during the first quarter was $1.9 billion, up from $1.8 billion last year. Operating expenses were 6% higher, coming in at $1.3 billion. The railways operating ratio was 70.6%, 3.5% better than the first quarter of 2006.
CN said the strike cost the company $35 million in net income.
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