OTTAWA (dpa-AFX) - Canadian National Railway Company (CNR.TO) announced the company expects to deliver earnings per share growth in the mid-single-digit range in 2017 over adjusted EPS of C$4.59 in 2016. The company said it will continue to invest in the safety and efficiency of its network, with a 2017 capital investment program of approximately C$2.5 billion, which includes increased spending for Positive Train Control technology in the United States. The company's Board approved a 10 percent increase to CN's 2017 quarterly cash dividend.
Luc Jobin, CEO, said: 'Overall, the economy remains challenging, but we remain optimistic and expect to see moderate volume growth in 2017.'
Fourth-quarter adjusted net income increased one percent to C$952 million, with adjusted diluted EPS increasing four percent to C$1.23. On average, 24 analysts polled by Thomson Reuters expected the company to report profit per share of C$0.91 for the quarter. Analysts' estimates typically exclude special items.
Fourth-quarter revenues increased by two percent to C$3.22 billion. Carloadings increased three percent, and revenue ton-miles increased four percent. Analysts expected revenue of C$2.43 billion for the quarter. The company said the revenue increase was mainly attributable to higher volumes of Canadian grains and U.S. soybeans, refined petroleum products, finished vehicles, and petroleum coke; as well as freight rate increases. These factors were partly offset by lower volumes of crude oil, U.S. thermal coal, and drilling pipe; and lower applicable fuel surcharge rates.
With the dividend increase, CN's dividend on an annualized basis is C$1.65 per common share. A quarterly dividend of C$0.4125 per common share will be paid on March 31, 2017, to shareholders of record at the close of business on March 10, 2017.
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