OTTAWA (dpa-AFX) - Canadian National Railway Company (CNR.TO, CNI) announced the company now aims to deliver 2017 adjusted EPS in the range of C$4.95 to C$5.10, versus last year's adjusted EPS of C$4.59, compared with its prior financial outlook which called for mid-single-digit growth in the current year. CN has also increased its 2017 capital program by C$100 million to C$2.6 billion, of which C$1.6 billion is still targeted toward track infrastructure. The additional capital investment will go toward the purchase of 22 high-horsepower locomotives and other projects to support growth.
CN reported that its first-quarter net income increased 12 percent to C$884 million, while EPS increased 16 percent to C$1.16, compared with the first quarter of 2016. Adjusted net income increased 11 percent to C$879 million, with adjusted EPS increasing 15 percent to C$1.15. The company noted that, on a constant currency basis, net income for the first quarter of 2017 would have been higher by C$22 million, or C$0.03 per share.
Revenues for the first quarter of 2017 were C$3.21 billion, an increase of eight percent, when compared to the same period in 2016. The company said the increase in revenues was mainly attributable to higher volumes of Canadian and U.S. grain, frac sand, coal exports, overseas intermodal traffic, and finished vehicles; freight rate increases; and higher applicable fuel surcharge rates. These factors were partly offset by the negative translation impact of a stronger Canadian dollar on U.S.-dollar-denominated revenues.
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