According to the latest data the Canadian National Railway issued the report showing 11 percent decrease of earnings for the second quarter of the year. The volume of the fall was diminished by the strengthened Canadian currency and growing fuel costs but still turned to be quite unexpected one.
Due to announcement made by the Railway they tried to be quite moderate in their forecasts concerning the earnings data even in spite of the unstable economy. As the Canadian Railway Chief Executive – Hunter Harrison has said he believes in fuel costs even in case the economical situation will turn to be negative.
The profit of the Railway decreased to C$459 million or 95 Canadian cents a share in the second quarter of the year. As for the experts they have forecasted earnings at the point of 86 Canadian cents a share.
Moreover the revenues increased by 4 percent and reached the point of C$2.09 billion but this was partly due to the increased by 60 percent fuel costs. Finally the Canadian National operating income decreased to C$707 million and the operating ratio decreased by 6.3 percent also mostly caused by the increased fuel costs.
Furthermore Canadian National issued also data about revenues for most groups of goods that turned to be higher except of the revenues in automobile industry and forest products. According to the Railway statement the high Canadian currency that was quite crucial for its revenues and expenses took a bit of almost C$25 million. Moreover due to several officials the forex rates will not be so important in the second half of the year as the Canadian currency reached its current positions around parity with the USD in the end of 2007.