This Day On The Street
Continue to site
ADVERTISEMENT
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 Management Discusses Q2 2012 Results - Earnings Call Transcript

In order to be fair, as we've done with the other quarters, could you please limit your questions to one each. And with that, it's now my pleasure to turn the call over to Mr. Claude Mongeau, our President and Chief Executive Officer. Claude?

Claude Mongeau

Thank you, Bob, and thank you to all of you for joining us bright and early on this call. It's sunny in Montreal, and the leadership team here at CN is pleased to be with you to discuss our results. I think our second quarter results show a lot of strength. We are very proud that our team of railroader has been able to deliver strong operating, service and financial results throughout the quarter.

If you look at the key highlights, our revenues are up 10% on a year-over-year basis, if we look at them on a constant currency basis. We were able to accommodate that growth at very low incremental costs, and the proof of that is our operating ratio at 61.3%, which is the same as what we did last year. You bring these 2 elements together and that allowed us to show forth a -- adjusted diluted EPS of $1.50, which is up 19% over last year. And free cash flow was -- for the first 6 months was just over $700 million. So clearly, again, if you look at it from a service standpoint, if you look at it from an operating standpoint, and Keith will discuss some of those trends in a minute. And you look at it from a financial standpoint, our agenda is working. We do have momentum and we are pleased with these second quarter results at this point in time. So Keith, over to you.

Keith E. Creel

Okay. Thanks, Claude. Listen, as we close out the first half of 2012, I'm not going to hesitate saying I'm extremely proud of our operating team's performance in the second quarter.

2 of 4

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
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,110.14 +72.17 0.40%
S&P 500 2,114.76 +5.84 0.28%
NASDAQ 5,055.4220 -4.8240 -0.10%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs