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CN says rail outage caused by software upgrade

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The massive outage on Canadian National Railway Co. lines that delayed thousands of Toronto-area commuters during the evening rush hour Tuesday can be traced to a software upgrade, the company says.

“At this time, our teams have determined that this was caused by an internal systems upgrade, which affected CN’s ability to connect to the internet,” CN spokesman Jonathan Abecassis said in an interview.

“There’s no indication of a cybersecurity incident whatsoever. At no time was the safety of the public compromised, and at no time was data impacted.”

The digital blackout “made it impossible for CN to connect to the internet,” he clarified. It also barred regional transport authority Metrolinx and its GO Transit trains from connecting to CN servers — essential to digital communications that direct locomotives where to move — Abecassis said. GO Transit trains run partly on CN-owned tracks.

Partial connectivity was restored at about 3:45 p.m., as some trains lurched back into motion hours behind schedule after the outage began at 12:30 p.m. System recovery was nearly complete by 8 p.m., and fully resolved overnight, Abecassis said.

Earlier, the computer malfunction forced GO Transit commuter trains in the Greater Toronto Area to stop at the nearest station, while riders crowded the city’s Union Station downtown during rush hour in hopes the network would resume.

The rail link connecting the downtown core to Toronto’s Pearson airport also stalled, while more than 30 Via Rail arrivals and departures at Union Station were late — 11 by more than two hours, including busy routes to or from Montreal, Ottawa and Windsor, Ont. — according to data compiled by Greg Gormick, who heads On Track Consulting.

No CN freight trains experienced major delays, while EXO commuter trains in the Montreal area and Amtrak passenger trains from the U.S. were also in operation, Abecassis said.

After CN’s computerized dispatch system went down, a handful of rail traffic controllers began issuing orders by pen and paper that were then sent out to conductors via radio to move trains to stations or other safe areas of track, where they were halted, according to two railway sources who spoke on condition of anonymity because they were not authorized to speak on the record.

EXO trains are dispatched directly by CN, which was able to revert to manual techniques to keep them moving, Abecassis said.

During the outage, CN worked with GO Transit to temporarily take over their train dispatching responsibilities, CN said. “This allowed for the partial resumption of GO and Via services” starting in late afternoon.

“We’re going to be working with Metrolinx to put in place processes to avoid this happening again,” Abecassis said.

This report by The Canadian Press was first published Oct. 4, 2023.

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TC Energy cuts cost estimate for Southeast Gateway pipeline project in Mexico

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CALGARY – TC Energy Corp. has lowered the estimated cost of its Southeast Gateway pipeline project in Mexico.

It says it now expects the project to cost between US$3.9 billion and US$4.1 billion compared with its original estimate of US$4.5 billion.

The change came as the company reported a third-quarter profit attributable to common shareholders of C$1.46 billion or $1.40 per share compared with a loss of C$197 million or 19 cents per share in the same quarter last year.

Revenue for the quarter ended Sept. 30 totalled C$4.08 billion, up from C$3.94 billion in the third quarter of 2023.

TC Energy says its comparable earnings for its latest quarter amounted to C$1.03 per share compared with C$1.00 per share a year earlier.

The average analyst estimate had been for a profit of 95 cents per share, according to LSEG Data & Analytics.

This report by The Canadian Press was first published Nov. 7, 2024.

Companies in this story: (TSX:TRP)

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BCE reports Q3 loss on asset impairment charge, cuts revenue guidance

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BCE Inc. reported a loss in its latest quarter as it recorded $2.11 billion in asset impairment charges, mainly related to Bell Media’s TV and radio properties.

The company says its net loss attributable to common shareholders amounted to $1.24 billion or $1.36 per share for the quarter ended Sept. 30 compared with a profit of $640 million or 70 cents per share a year earlier.

On an adjusted basis, BCE says it earned 75 cents per share in its latest quarter compared with an adjusted profit of 81 cents per share in the same quarter last year.

“Bell’s results for the third quarter demonstrate that we are disciplined in our pursuit of profitable growth in an intensely competitive environment,” BCE chief executive Mirko Bibic said in a statement.

“Our focus this quarter, and throughout 2024, has been to attract higher-margin subscribers and reduce costs to help offset short-term revenue impacts from sustained competitive pricing pressures, slow economic growth and a media advertising market that is in transition.”

Operating revenue for the quarter totalled $5.97 billion, down from $6.08 billion in its third quarter of 2023.

BCE also said it now expects its revenue for 2024 to fall about 1.5 per cent compared with earlier guidance for an increase of zero to four per cent.

The company says the change comes as it faces lower-than-anticipated wireless product revenue and sustained pressure on wireless prices.

BCE added 33,111 net postpaid mobile phone subscribers, down 76.8 per cent from the same period last year, which was the company’s second-best performance on the metric since 2010.

It says the drop was driven by higher customer churn — a measure of subscribers who cancelled their service — amid greater competitive activity and promotional offer intensity. BCE’s monthly churn rate for the category was 1.28 per cent, up from 1.1 per cent during its previous third quarter.

The company also saw 11.6 per cent fewer gross subscriber activations “due to more targeted promotional offers and mobile device discounting compared to last year.”

Bell’s wireless mobile phone average revenue per user was $58.26, down 3.4 per cent from $60.28 in the third quarter of the prior year.

This report by The Canadian Press was first published Nov. 7, 2024.

Companies in this story: (TSX:BCE)

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Canada Goose reports Q2 revenue down from year ago, trims full-year guidance

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TORONTO – Canada Goose Holdings Inc. trimmed its financial guidance as it reported its second-quarter revenue fell compared with a year ago.

The luxury clothing company says revenue for the quarter ended Sept. 29 totalled $267.8 million, down from $281.1 million in the same quarter last year.

Net income attributable to shareholders amounted to $5.4 million or six cents per diluted share, up from $3.9 million or four cents per diluted share a year earlier.

On an adjusted basis, Canada Goose says it earned five cents per diluted share in its latest quarter compared with an adjusted profit of 16 cents per diluted share a year earlier.

In its outlook, Canada Goose says it now expects total revenue for its full financial year to show a low-single-digit percentage decrease to low-single-digit percentage increase compared with earlier guidance for a low-single-digit increase.

It also says it now expects its adjusted net income per diluted share to show a mid-single-digit percentage increase compared with earlier guidance for a percentage increase in the mid-teens.

This report by The Canadian Press was first published Nov. 7, 2024.

Companies in this story: (TSX:GOOS)

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