This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Canadian National Railway's CEO Discusses Q1 2012 Results - Earnings Call Transcript

In terms of earnings, and I'm looking at it here on an adjusted basis, we delivered $1.18, which is up 31% over last year. I'd be remiss if I didn't focus on the weather, obviously, the fact that we had one extra day also helped. There's perhaps 1/3 of that EPS growth on a year-over-year basis, which is due to those factors. But nevertheless, solid, solid first quarter result and Luc will give you all the details, including some of our monetization and how we are able to use and then deliver very strong free cash flow.

So solid results overall, I'll ask the team to give you the details and I'll wrap up at the end. Keith, over to you.

Keith E. Creel

Okay. Thanks for the comments, Claude. Let me say that while definitely a milder winter in 2011, 2012 first quarter was not without its operational challenges. But regardless, the tenacity and the execution of this operating team produced some pretty solid results.

Let's start with a view of the operating metrics that we report quarterly. We always provide a good overview of our productivity and the fluidity of our operation.

As you can see on the charts, we produced improvements across the board on all operating metrics. Due to a traffic mix change, our trainload was only up 1%. However, train length was up about 3% year-over-year. So regardless of the mix change, we continue to increase efficiency of our trains.

Of the other metrics, as you see here at least by -- up at least 3% relative to last year, which has allowed us to absorb our growth at a lower incremental cost. All a very solid performance of a talented and dedicated railroaders we have from this team.

Let's stay in the interest of providing a bit more relative first quarter comparison to proxy, let's compare our performance. In the first quarter of 2010, which is a winter similar to this year, we also showed improvements in all of our metrics. As you see, the only exception to this metrics are in train speed and locomotive productivity. These are 2 metrics which we have impacted consciously for their efforts to focus squarely on maximizing the throughput of our Bulk logistics supply chain. I'll give you a quick example. Of the sheer goal of pushing more coal to our supply chain, we're working with our supply-chain partners to forge to ensure that we consistently have a train ready to take advantage of our unload windows.

Read the rest of this transcript for free on

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.70 0.00%
FB $101.91 0.00%
GOOG $683.11 0.00%
TSLA $150.47 0.00%
YHOO $26.76 0.00%


Chart of I:DJI
DOW 15,660.18 -254.56 -1.60%
S&P 500 1,829.08 -22.78 -1.23%
NASDAQ 4,266.8370 -16.7550 -0.39%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs