Canadian National Railway Company (CN) reported its financial and operating results for the third quarter ended September 30, 2015.
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Revenues for the third quarter of 2015 increased by 3 percent to C$3,222 million. Revenues increased for automotive (13 percent), forest products (12 percent), intermodal (five percent), petroleum and chemicals (three percent), and grain and fertilizers (two percent).
Revenues declined for coal (13 percent) and metals and minerals (three percent).
The revenue performance was mainly attributable to the positive translation impact of the weaker Canadian dollar on U.S.-dollar-denominated revenues; freight rate increases; strong overseas intermodal demand, higher volumes of finished vehicle traffic, and increased shipments of lumber and panels to U.S. markets.
These factors were partly offset by a lower applicable fuel surcharge rate; decreased shipments of coal due to weaker North American and global demand; reduced shipments of energy-related commodities including crude oil, frac sand and drilling pipe; lower volumes of semi-finished steel products and short-haul iron ore; as well as lower volumes of Canadian grain versus the prior year's record crop.
Carloadings for the quarter declined by six percent to 1,393 thousand.
Revenue ton-miles, measuring the relative weight and distance of rail freight transported by CN, declined by six percent over the year-earlier quarter.
Rail freight revenue per revenue ton-mile, a measurement of yield defined as revenue earned on the movement of a ton of freight over one mile, increased by 10 percent over the year-earlier period, driven by the positive translation impact of the weaker Canadian dollar and freight rate increases, partly offset by a lower applicable fuel surcharge rate and an increase in the average length of haul.
Operating expenses for the quarter decreased by five percent to C$1,735 million, mainly due to lower fuel costs and lower casualty and other expense, partly offset by the negative translation impact of a weaker Canadian dollar on U.S.-dollar-denominated expenses. ■