CN Rail beats profit estimates on increased freight rates, intermodal strength
Adds details on results, compares with estimates
Oct 22 (Reuters) - Canadian National Railway Co CNR.TO, CNI.N beat analysts' estimates for quarterly adjusted profit on Tuesday, as the largest railroad operator in Canada was helped by higher freight rates and strength in its intermodal unit.
Revenue from intermodal shipments rose 13% to C$1.02 billion ($778.92 million) in the third quarter, driving the total revenue up 4% to C$3.83 billion.
The Montreal-based company, however, cut its adjusted profit forecast for the year, citing deterioration in North American rail demand due to a weakening economy.
The company now expects adjusted earnings per share growth in the high single-digit percentage range this year, compared with an earlier estimate of low double-digit range.
Revenue from the petroleum and chemicals segment, which includes the company's crude-by-rail shipments, rose 18% to C$788 million.
Excluding one-time items, the railroad company earned C$1.66 per share, beating the average analyst estimate of C$1.62, according to IBES data from Refinitiv.
The company's net income rose to C$1.20 billion, or C$1.66 per share, in the quarter ended Sept. 30, from C$1.13 billion, or C$1.54 per share, a year earlier.
($1 = C$1.31)
(Reporting by Shanti S Nair in Bengaluru; Editing by Maju Samuel)
((ShantiS.Nair@thomsonreuters.com; +1 646 223 8780 Ext: 7208;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.