CN Records $3.59 Billion In Revenue For Q3 2021, Announces CEO’s 2022 Retirement
CN (TSX: CNR) released on Tuesday its third quarter 2021 financial results, which saw the company post $3.59 billion in revenue. This is an increase from Q3 2020’s revenue of $3.41 billion.
“CN’s dedicated railroaders produced strong financial and operating results this quarter, despite headwinds from severe wildfires in Western Canada that caused a prolonged disruption to CN’s main line to Vancouver in July,” said CN CEO Jean-Jacques Ruest.
Corollary, the quarterly net income also increased to $1.69 billion from $985 million for the same comparable period last quarter. This translates to $2.37 earnings per share for the quarter.
Adjusted EBITDA meanwhile came in at $7.20 billion for the twelve month-month period compared to Q3 2020’s $6.80 billion. The firm meanwhile generated free cash flow of $754 million during the quarter.
The company released its strategic and financial value creation plan in September 2021, which includes targeting $700 million worth of operating income improvements. “We believe that we are well-positioned to achieve our targets of C$700 million of additional operating income and a 57 percent operating ratio for 2022,” Ruest added.
For the quarter, the company’s operating ratio is at 62.7% while the adjusted ratio is at 59.0%
The Canadian railway also announced the planned retirement of Ruest at the end of January 2022, or a later time should a successor hasn’t been selected yet. The firm has created a search committee that will work with a third-party search firm to conduct a global search to replace Ruest.
You may see the full details of the financial results here.
After the termination of the supposed merger with Kansas City Southern (NYSE: KSU), the company is set to receive US$1.4 billion in termination fees.
CN last traded at $153.52 on the TSX.
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