(Reuters) -Canadian National Railway said on Monday quarterly profit fell 3.6% as the COVID-19 pandemic hit shipment volumes of coal, petroleum and chemicals.
Shipments were also affected by a historic winter storm in central and southern U.S. states earlier this year, which disrupted energy supply in the region and hurt a recovery in rail freight volumes from the pandemic.
Still, Canadian National said it now expects “high single-digit” volume growth in 2021, up from its prior outlook of “mid-single-digit” growth.
Canadian National and smaller rival Canadian Pacific have been vying to take over U.S. railroad Kansas City Southern, eyeing control over a vast network of railways spanning the United States, Canada and Mexico.
Canadian National’s operating ratio, a closely watched measure of operating expenses as a percentage of revenue, improved to 62.5% from 65.7%. A lower operating ratio signals improved profitability.
Net income at Canada‘s largest railroad operator rose to C$974 million ($785.67 million), or C$1.37 per share, in the first quarter ended March 31, from C$1.01 billion, or C$1.42 per share, a year earlier.
Revenue fell to C$3.54 billion from C$3.55 billion a year earlier.
(Reporting by Shreyasee Raj in Bengaluru; Editing by Devika Syamnath)
