After a tough 2024 that saw profits drop 21 per cent, the head of Canadian National Railway Co. said the new year is looking brighter 91裸聊视频� even if U.S. President Donald Trump follows through on his tariff threat.
91裸聊视频淲hile there may be some impact, it won91裸聊视频檛 be so significant or prolonged as to cause a recession in Canada or significant inflationary impacts in the U.S.,91裸聊视频� CEO Tracy Robinson said on Thursday.
91裸聊视频淲e are assuming a modest lift in the economy.91裸聊视频�
That forecast reflects an optimistic view. On Wednesday, the Bank of Canada projected that 25 per cent tariffs across the board by the U.S. could bring on a recession and boost inflation within the first year of a trade war.
That would also be a harsh followup to a bumpy year for CN.
The country91裸聊视频檚 largest railway saw fourth-quarter profits fall by nearly half year over year amid lower volumes across virtually all freight segments.
The three-month period saw work stoppages in November at the three largest ports in Canada 91裸聊视频� Vancouver, Montreal and Prince Rupert, B.C. 91裸聊视频� that halted container traffic. A long stretch of cold weather struck in December, slowing train speeds.
91裸聊视频淲inter came early,91裸聊视频� said chief field operating officer Derek Taylor.
The disruptions also followed a devastating July wildfire in Jasper, Alta.91裸聊视频� CN91裸聊视频檚 busiest corridor runs through the mountain town 91裸聊视频� and a massive work stoppage by workers at CN and rival Canadian Pacific Kansas City Ltd. in August.
91裸聊视频�2024 was a hell of a year,91裸聊视频� Robinson said. 91裸聊视频淲e are happy to have it behind us.
91裸聊视频淲e didn91裸聊视频檛 deliver growth to the bottom line. We91裸聊视频檙e not happy with that,91裸聊视频� she added.
Revenues from container shipments 91裸聊视频� CN91裸聊视频檚 biggest segment annually 91裸聊视频� sagged eight per cent year-over-year last quarter due to the disruptions as well as lower consumer demand. But proceeds from its two other big categories 91裸聊视频� grain and fertilizers along with petroleum and chemicals 91裸聊视频� increased four per cent and one per cent, respectively.
The railroad operator notched a record year for grain volumes due largely to big wheat and canola hauls.
The company predicted a bounceback this year in areas ranging from containers to chemicals and plastics.
91裸聊视频淭he big question is the tariffs,91裸聊视频� Jeff Windau, an analyst at Edward Jones, said in an interview.
91裸聊视频淭hat91裸聊视频檚 the key item which is going to drive 2025 results,91裸聊视频� he said. 91裸聊视频淰olume is the key for them, and depending on whether tariffs are implemented and by how much, their volumes could see a hit.91裸聊视频�
Windau added that CN expectations of solid growth in the coming year were 91裸聊视频渞easonable,91裸聊视频� but stressed that crucial factors remain unknown.
On Thursday, the company forecasted growth in adjusted diluted earnings per share of between 10 and 15 per cent for 2025 alongside $3.4 billion of capital investment. It also announced a five per cent dividend increase.
91裸聊视频淲ith the bar now reset after a difficult 2024, much hinges on hitting the new targets provided. Key is that we believe management has the right operating team in place to achieve just that,91裸聊视频� said RBC Dominion Securities analyst Walter Spracklin.
Net income for the three months ended Dec. 31 dropped 46 per cent to $1.15 billion, down from $2.13 billion in the same period the year before, CN reported.
Fourth-quarter revenue dipped three per cent to $4.36 billion from $4.47 billion a year earlier, the Montreal-based company said.
On an adjusted basis, diluted earnings per share decreased 10 per cent to $1.82 from $2.02 per share, below analysts91裸聊视频� expectations of $1.96 per share, according to financial markets data firm Refinitiv.
