Not much time this morning to discuss this, but CN came out smokin with their earnings report for 2Q, 2014.
Operating ratio was down to 59.6%. Revenues exploded by 17%, carloadings were up 11% (all that Canadian grain started moving to market), and earnings per share were up 24%.
I will take a look at detailed numbers later, but needless to say, CN seems to have handled the winter - spring transition quite well.
Full disclosure…I hold CN stock.
Ed
Upon further review:
Petro/chemical revenues were up 17% with carloadings up 7%.
Metal/minerals were up 20% with carloadings down 3%…hmmm.
Forest products were up 9% with carloadings flat.
Auto was up 15% with carloadings up 5%.
Coal was up 5% with carloadings up 28%.
Grain/fertilizer up 35% with carloadings up 29%.
Intermodal revenues up 17% and carloadings up 15%.
There was also about a 5% currency bump, so that impacted the revenue to carloadings ratio.
CN has indicated they are aggressively repricing the bottom 20% of their business in order to increase yields. Further, they expect the grain to continue to flow in Western Canada.
Ed