· |
Net income and diluted earnings per share for the final quarter of 2009 increased two per cent from the year-earlier period to C$582 million and C$1.23, respectively. The results included an after-tax gain of C$59 million (C$0.12 per diluted share) from a line-sale to Metrolinx, a transit agency in Toronto, and a deferred income tax recovery of C$99 million
(C$0.21 per diluted share). |
· |
Excluding these items, adjusted fourth-quarter 2009 net income was C$424 million, or C$0.90 per diluted share, compared with adjusted net income of C$531 million, or C$1.12 per diluted share, excluding a deferred income tax recovery, for the year-earlier period. (1) |
· |
Fourth-quarter 2009 revenues declined 14 per cent from a year earlier to C$1,882 million. |
· |
Fourth-quarter operating ratio was 65.3 per cent, compared with 62.7 per cent for the same quarter of 2008. |
· |
Free cash flow for full-year 2009 was C$790 million, compared with 2008’s C$794 million. (1) |
(1) |
Please see discussion and reconciliation of non-GAAP adjusted performance measures in the attached supplementary schedule, Non-GAAP Measures. |
(2) |
See Forward-Looking Statements for a summary of the key assumptions and risks regarding CN’s 2010 outlook. |
Media |
Investment Community |
Mark Hallman |
Robert Noorigian |
Director, Communications & Public Affairs |
Vice-President, Investor Relations |
(905) 669-3384 |
(514) 399-0052 |
CANADIAN NATIONAL RAILWAY COMPANY |
CONSOLIDATED STATEMENT OF INCOME (U.S. GAAP) |
(In millions, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
Three months ended |
|
Year ended | ||||||||||||
|
|
December 31 |
|
December 31 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
2009 |
|
|
2008 |
|
|
2009 |
|
|
2008 | ||||
|
|
(Unaudited) | ||||||||||||||
Revenues |
$ |
1,882 |
|
$ |
2,200 |
|
$ |
7,367 |
|
$ |
8,482 | |||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Operating expenses |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Labor and fringe benefits |
|
413 |
|
|
397 |
|
|
1,696 |
|
|
1,674 | ||||
|
Purchased services and material |
|
256 |
|
|
301 |
|
|
1,027 |
|
|
1,137 | ||||
|
Fuel |
|
221 |
|
|
304 |
|
|
769 |
|
|
1,403 | ||||
|
Depreciation and amortization |
|
197 |
|
|
197 |
|
|
790 |
|
|
725 | ||||
|
Equipment rents |
|
66 |
|
|
79 |
|
|
284 |
|
|
262 | ||||
|
Casualty and other |
|
76 |
|
|
102 |
|
|
395 |
|
|
387 | ||||
Total operating expenses |
|
1,229 |
|
|
1,380 |
|
|
4,961 |
|
|
5,588 | |||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Operating income |
|
653 |
|
|
820 |
|
|
2,406 |
|
|
2,894 | |||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Interest expense |
|
(95) |
|
|
(110) |
|
|
(412) |
|
|
(375) | |||||
Other income |
|
76 |
|
|
19 |
|
|
267 |
|
|
26 | |||||
Income before income taxes |
|
634 |
|
|
729 |
|
|
2,261 |
|
|
2,545 | |||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Income tax expense |
|
(52) |
|
|
(156) |
|
|
(407) |
|
|
(650) | |||||
Net income |
$ |
582 |
|
$ |
573 |
|
$ |
1,854 |
|
$ |
1,895 | |||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Earnings per share |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Basic |
$ |
1.24 |
|
$ |
1.22 |
|
$ |
3.95 |
|
$ |
3.99 | ||||
|
Diluted |
$ |
1.23 |
|
$ |
1.21 |
|
$ |
3.92 |
|
$ |
3.95 | ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Weighted-average number of shares |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Basic |
|
470.5 |
|
|
468.1 |
|
|
469.2 |
|
|
474.7 | ||||
|
Diluted |
|
474.8 |
|
|
472.5 |
|
|
473.5 |
|
|
480.0 | ||||
These unaudited interim consolidated financial statements, expressed in Canadian dollars, and prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP), contain all adjustments (consisting of normal recurring accruals) necessary to present fairly Canadian National Railway Company's (the Company) financial position
as at December 31, 2009 and December 31, 2008, and its results of operations, changes in shareholders' equity and cash flows for the three months and years ended December 31, 2009 and 2008. These consolidated financial statements have been prepared using accounting policies consistent with those used in preparing the Company's 2009 Annual Consolidated Financial Statements and should be read in conjunction with such statements, notes thereto and Management's Discussion and Analysis (MD&A). |
CANADIAN NATIONAL RAILWAY COMPANY |
CONSOLIDATED BALANCE SHEET (U.S. GAAP) |
(In millions) |
|
|
|
|
|
|
|
||
|
|
December 31 |
|
December 31 | ||||
|
|
|
|
2009 |
|
|
2008 | |
|
|
|
(Unaudited) |
|
|
|||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
352 |
|
$ |
413 | ||
Accounts receivable |
|
|
|
797 |
|
|
913 | |
Material and supplies |
|
|
|
170 |
|
|
200 | |
Deferred income taxes |
|
|
|
105 |
|
|
98 | |
Other |
|
|
|
66 |
|
|
132 | |
|
|
|
|
1,490 |
|
|
1,756 | |
|
|
|
|
|
|
|
| |
Properties |
|
|
|
22,630 |
|
|
23,203 | |
Intangible and other assets |
|
|
|
1,056 |
|
|
1,761 | |
|
|
|
|
|
|
|
| |
Total assets |
|
$ |
25,176 |
|
$ |
26,720 | ||
|
|
|
|
|
|
|
|
|
Liabilities and shareholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable and other |
|
$ |
1,167 |
|
$ |
1,386 | ||
Current portion of long-term debt |
|
|
|
70 |
|
|
506 | |
|
|
|
|
1,237 |
|
|
1,892 | |
|
|
|
|
|
|
|
| |
Deferred income taxes |
|
|
|
5,119 |
|
|
5,511 | |
Other liabilities and deferred credits |
|
|
|
1,196 |
|
|
1,353 | |
Long-term debt |
|
|
|
6,391 |
|
|
7,405 | |
|
|
|
|
|
|
|
| |
Shareholders' equity: |
|
|
|
|
|
|
| |
Common shares |
|
|
|
4,266 |
|
|
4,179 | |
Accumulated other comprehensive loss |
|
|
|
(948) |
|
|
(155) | |
Retained earnings |
|
|
|
7,915 |
|
|
6,535 | |
|
|
|
|
11,233 |
|
|
10,559 | |
|
|
|
|
|
|
|
| |
Total liabilities and shareholders' equity |
|
$ |
25,176 |
|
$ |
26,720 | ||
These unaudited interim consolidated financial statements, expressed in Canadian dollars, and prepared in accordance with U.S. GAAP, contain all adjustments (consisting of normal recurring accruals) necessary to present fairly the Company’s financial position as at December 31, 2009 and December 31, 2008, and its results of operations,
changes in shareholders' equity and cash flows for the three months and years ended December 31, 2009 and 2008. These consolidated financial statements have been prepared using accounting policies consistent with those used in preparing the Company's 2009 Annual Consolidated Financial Statements and should be read in conjunction with such statements, notes thereto and MD&A.
Subsequent event
On January 26, 2010, the Board of Directors of the Company approved a new share repurchase program which allows for the repurchase of up to 15.0 million common shares between January 29, 2010 and December 31, 2010 pursuant to a normal course issuer bid, at prevailing market prices or such other prices as may be permitted
by the Toronto Stock Exchange.
|
CANADIAN NATIONAL RAILWAY COMPANY |
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (U.S. GAAP) |
(In millions) |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Three months ended |
|
Year ended | ||||||||||||
|
December 31 |
|
December 31 | ||||||||||||
|
|
2009 |
|
|
2008 |
|
|
2009 |
|
|
2008 | ||||
|
(Unaudited) | ||||||||||||||
Common shares (1) |
|
|
|
|
|
|
|
|
|
|
| ||||
Balance, beginning of period |
$ |
4,239 |
|
$ |
4,171 |
|
$ |
4,179 |
|
$ |
4,283 | ||||
Stock options exercised and other |
|
27 |
|
|
9 |
|
|
87 |
|
|
68 | ||||
Share repurchase programs |
|
- |
|
|
(1) |
|
|
- |
|
|
(172) | ||||
Balance, end of period |
$ |
4,266 |
|
$ |
4,179 |
|
$ |
4,266 |
|
$ |
4,179 | ||||
|
|
|
|
|
|
|
|
|
|
|
| ||||
Accumulated other comprehensive income (loss) |
|
|
|
|
|
|
|
|
|
|
| ||||
Balance, beginning of period |
$ |
(288) |
|
$ |
54 |
|
$ |
(155) |
|
$ |
(31) | ||||
Other comprehensive income (loss): |
|
|
|
|
|
|
|
|
|
|
| ||||
Unrealized foreign exchange gain (loss) on: |
|
|
|
|
|
|
|
|
|
|
| ||||
Translation of the net investment in foreign operations |
|
(114) |
|
|
860 |
|
|
(998) |
|
|
1,259 | ||||
Translation of U.S. dollar-denominated long-term debt |
|
|
|
|
|
|
|
|
|
|
| ||||
designated as a hedge of the net investment in U.S. subsidiaries |
|
113 |
|
|
(877) |
|
|
976 |
|
|
(1,266) | ||||
Pension and other postretirement benefit plans: |
|
|
|
|
|
|
|
|
|
|
| ||||
Net actuarial loss arising during the period |
|
(868) |
|
|
(452) |
|
|
(868) |
|
|
(452) | ||||
Prior service cost arising during the period |
|
(2) |
|
|
( 3) |
|
|
(2) |
|
|
(3) | ||||
Amortization of net actuarial loss (gain) included in net |
|
|
|
|
|
|
|
|
|
|
| ||||
periodic benefit cost (income) |
|
1 |
|
|
- |
|
|
2 |
|
|
(2) | ||||
Amortization of prior service cost included in net |
|
|
|
|
|
|
|
|
|
|
| ||||
periodic benefit cost (income) |
|
3 |
|
|
3 |
|
|
5 |
|
|
21 | ||||
Other comprehensive loss before income taxes |
|
(867) |
|
|
(469) |
|
|
(885) |
|
|
(443) | ||||
Income tax recovery |
|
207 |
|
|
260 |
|
|
92 |
|
|
319 | ||||
Other comprehensive loss |
|
(660) |
|
|
(209) |
|
|
(793) |
|
|
(124) | ||||
Balance, end of period |
$ |
(948) |
|
$ |
(155) |
|
$ |
(948) |
|
$ |
(155) | ||||
|
|
|
|
|
|
|
|
|
|
|
| ||||
Retained earnings |
|
|
|
|
|
|
|
|
|
|
| ||||
Balance, beginning of period |
$ |
7,452 |
|
$ |
6,073 |
|
$ |
6,535 |
|
$ |
5,925 | ||||
Net income |
|
582 |
|
|
573 |
|
|
1,854 |
|
|
1,895 | ||||
Share repurchase programs |
|
- |
|
|
(3) |
|
|
- |
|
|
(849) | ||||
Dividends |
|
(119) |
|
|
(108) |
|
|
(474) |
|
|
(436) | ||||
Balance, end of period |
$ |
7,915 |
|
$ |
6,535 |
|
$ |
7,915 |
|
$ |
6,535 | ||||
| |||||||||||||||
|
|
CANADIAN NATIONAL RAILWAY COMPANY |
CONSOLIDATED STATEMENT OF CASH FLOWS (U.S. GAAP) |
(In millions) |
|
|
Three months ended |
|
|
Year ended |
||||||||||||||||||||||||||
|
|
December 31 |
|
|
December 31 |
||||||||||||||||||||||||||
|
|
2009 |
|
|
2008 |
|
|
2009 |
|
|
2008 |
||||||||||||||||||||
|
|
(Unaudited) |
|||||||||||||||||||||||||||||
Operating activities |
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
Net income |
$ |
582 |
|
$ |
573 |
|
$ |
1,854 |
|
$ |
1,895 | ||||||||||||||||||||
Adjustments to reconcile net income to net cash |
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
provided from operating activities: |
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
Depreciation and amortization |
|
197 |
|
|
197 |
|
|
790 |
|
|
725 | ||||||||||||||||||||
Deferred income taxes |
|
(8) |
|
|
43 |
|
|
138 |
|
|
230 | ||||||||||||||||||||
Gain on disposal of property |
|
(69) |
|
|
- |
|
|
(226) |
|
|
- | ||||||||||||||||||||
Other changes in: |
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
Accounts receivable |
|
41 |
|
|
(173) |
|
|
39 |
|
|
(432) | ||||||||||||||||||||
Material and supplies |
|
65 |
|
|
25 |
|
|
32 |
|
|
(23) | ||||||||||||||||||||
Accounts payable and other |
|
(12) |
|
|
(28) |
|
|
(204) |
|
|
(127) | ||||||||||||||||||||
Other current assets |
|
(9) |
|
|
2 |
|
|
77 |
|
|
37 | ||||||||||||||||||||
Other |
|
(108) |
|
|
(139) |
|
|
(221) |
|
|
(274) | ||||||||||||||||||||
Cash provided from operating activities |
|
679 |
|
|
500 |
|
|
2,279 |
|
|
2,031 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
Investing activities |
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
Property additions |
|
(564) |
|
|
(480) |
|
|
(1,402) |
|
|
(1,424) | ||||||||||||||||||||
Acquisitions, net of cash acquired |
|
- |
|
|
(50) |
|
|
(373) |
|
|
(50) | ||||||||||||||||||||
Disposal of property |
|
74 |
|
|
- |
|
|
231 |
|
|
- | ||||||||||||||||||||
Other, net |
|
57 |
|
|
32 |
|
|
107 |
|
|
74 | ||||||||||||||||||||
Cash used by investing activities |
|
(433) |
|
|
(498) |
|
|
(1,437) |
|
|
(1,400) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
Financing activities |
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
Issuance of long-term debt |
|
1 |
|
|
1,003 |
|
|
1,626 |
|
|
4,433 | ||||||||||||||||||||
Reduction of long-term debt |
|
(39) |
|
|
(793) |
|
|
(2,109) |
|
|
(3,589) | ||||||||||||||||||||
Issuance of common shares due to exercise of stock |
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||
options and related excess tax benefits realized |
|
24 |
|
|
6 |
|
|
73 |
|
|
54 | ||||||||||||||||||||
Repurchase of common shares |
|
- |
|
|
(4) |
|
|
- |
|
|
(1,021) | ||||||||||||||||||||
Dividends paid |
|
(119) |
|
|
(108) |
|
|
(474) |
|
|
(436) | ||||||||||||||||||||
Cash provided from (used by) financing activities |
|
(133) |
|
|
104 |
|
|
(884) |
|
|
(559) | ||||||||||||||||||||
Effect of foreign exchange fluctuations on U.S. |
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
dollar-denominated cash and cash equivalents |
|
6 |
|
|
19 |
|
|
(19) |
|
|
31 | ||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents |
|
119 |
|
|
125 |
|
|
(61) |
|
|
103 | ||||||||||||||||||||
Cash and cash equivalents, beginning of period |
|
233 |
|
|
288 |
|
|
413 |
|
|
310 | ||||||||||||||||||||
Cash and cash equivalents, end of period |
$ |
352 |
|
$ |
413 |
|
$ |
352 |
|
$ |
413 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
Supplemental cash flow information |
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
Net cash receipts from customers and other |
$ |
1,965 |
|
$ |
1,987 |
|
$ |
7,505 |
|
$ |
8,012 | ||||||||||||||||||||
Net cash payments for: |
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
Employee services, suppliers and other expenses |
|
(1,057) |
|
|
(1,171) |
|
|
(4,314) |
|
|
(4,920) | ||||||||||||||||||||
Interest |
|
(101) |
|
|
(124) |
|
|
(407) |
|
|
(396) | ||||||||||||||||||||
Workforce reductions |
|
(4) |
|
|
(5) |
|
|
(17) |
|
|
(22) | ||||||||||||||||||||
Personal injury and other claims |
|
(26) |
|
|
(29) |
|
|
(112) |
|
|
(91) | ||||||||||||||||||||
Pensions |
|
(46) |
|
|
(50) |
|
|
(131) |
|
|
(127) | ||||||||||||||||||||
Income taxes |
|
(52) |
|
|
(108) |
|
|
(245) |
|
|
(425) | ||||||||||||||||||||
Cash provided from operating activities |
$ |
679 |
|
$ |
500 |
|
$ |
2,279 |
|
$ |
2,031 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
CANADIAN NATIONAL RAILWAY COMPANY |
SELECTED RAILROAD STATISTICS (1) (U.S. GAAP) |
|
|
|
|
| |
Three months ended |
|
Year ended | |||
December 31 |
|
December 31 | |||
2009 |
2008 |
|
2009 |
2008 | |
(Unaudited) | |||||
Statistical operating data |
|
|
|
|
|
|
|
|
|
| |
Rail freight revenues ($ millions) |
1,679 |
1,977 |
|
6,632 |
7,641 |
Gross ton miles (GTM) (millions) |
78,760 |
81,871 |
|
304,690 |
339,854 |
Revenue ton miles (RTM) (millions) |
41,819 |
42,382 |
|
159,862 |
177,951 |
Carloads (thousands) |
1,077 |
1,078 |
|
3,991 |
4,615 |
Route miles (includes Canada and the U.S.) |
21,094 |
20,961 |
|
21,094 |
20,961 |
Employees (end of period) |
21,501 |
22,227 |
|
21,501 |
22,227 |
Employees (average for the period) |
21,478 |
22,461 |
|
21,793 |
22,695 |
|
|
|
|
| |
Productivity |
|
|
|
|
|
|
|
|
|
| |
Operating ratio (%) |
65.3 |
62.7 |
|
67.3 |
65.9 |
Rail freight revenue per RTM (cents) |
4.01 |
4.66 |
|
4.15 |
4.29 |
Rail freight revenue per carload ($) |
1,559 |
1,834 |
|
1,662 |
1,656 |
Operating expenses per GTM (cents) |
1.56 |
1.69 |
|
1.63 |
1.64 |
Labor and fringe benefits expense per GTM (cents) |
0.52 |
0.48 |
|
0.56 |
0.49 |
GTMs per average number of employees (thousands) |
3,667 |
3,645 |
|
13,981 |
14,975 |
Diesel fuel consumed (U.S. gallons in millions) |
83 |
93 |
|
327 |
380 |
Average fuel price ($/U.S. gallon) |
2.33 |
2.88 |
|
2.12 |
3.39 |
GTMs per U.S. gallon of fuel consumed |
949 |
880 |
|
932 |
894 |
|
|
|
|
| |
Safety indicators |
|
|
|
|
|
|
|
|
|
| |
Injury frequency rate per 200,000 person hours (2) |
2.09 |
1.72 |
|
1.78 |
1.78 |
Accident rate per million train miles (2) |
3.30 |
2.83 |
|
2.27 |
2.58 |
|
|
|
|
| |
Financial ratio |
|
|
|
|
|
|
|
|
|
| |
Debt to total capitalization ratio (% at end of period) |
36.5 |
42.8 |
|
36.5 |
42.8 |
(1) Includes data relating to companies acquired as of the date of acquisition. | |||||
(2) Based on Federal Railroad Administration (FRA) reporting criteria. |
CANADIAN NATIONAL RAILWAY COMPANY |
SUPPLEMENTARY INFORMATION (U.S. GAAP) |
|
Three months ended December 31 |
|
Year ended December 31 | ||||
|
|
|
Variance |
|
|
|
Variance |
|
2009 |
2008 |
Fav (Unfav) |
|
2009 |
2008 |
Fav (Unfav) |
|
(Unaudited) | ||||||
Revenues (millions of dollars) |
|
|
|
|
|
|
|
Petroleum and chemicals |
302 |
359 |
(16%) |
|
1,260 |
1,346 |
(6%) |
Metals and minerals |
189 |
237 |
(20%) |
|
728 |
950 |
(23%) |
Forest products |
271 |
366 |
(26%) |
|
1,147 |
1,436 |
(20%) |
Coal |
122 |
132 |
(8%) |
|
464 |
478 |
(3%) |
Grain and fertilizers |
356 |
381 |
(7%) |
|
1,341 |
1,382 |
(3%) |
Intermodal |
341 |
390 |
(13%) |
|
1,337 |
1,580 |
(15%) |
Automotive |
98 |
112 |
(13%) |
|
355 |
469 |
(24%) |
Total rail freight revenue |
1,679 |
1,977 |
(15%) |
|
6,632 |
7,641 |
(13%) |
Other revenues |
203 |
223 |
(9%) |
|
735 |
841 |
(13%) |
Total revenues |
1,882 |
2,200 |
(14%) |
|
7,367 |
8,482 |
(13%) |
|
|
|
|
|
|
|
|
Revenue ton miles (millions) |
|
|
|
|
|
|
|
Petroleum and chemicals |
7,270 |
7,678 |
(5%) |
|
29,381 |
32,346 |
(9%) |
Metals and minerals |
3,507 |
3,982 |
(12%) |
|
12,994 |
17,953 |
(28%) |
Forest products |
6,910 |
7,848 |
(12%) |
|
27,594 |
33,847 |
(18%) |
Coal |
4,176 |
3,697 |
13% |
|
14,805 |
14,886 |
(1%) |
Grain and fertilizers |
11,281 |
10,592 |
7% |
|
40,859 |
42,507 |
(4%) |
Intermodal |
8,095 |
8,027 |
1% |
|
32,159 |
33,822 |
(5%) |
Automotive |
580 |
558 |
4% |
|
2,070 |
2,590 |
(20%) |
|
41,819 |
42,382 |
(1%) |
|
159,862 |
177,951 |
(10%) |
Rail freight revenue / RTM (cents) |
|
|
|
|
|
|
|
Total rail freight revenue per RTM |
4.01 |
4.66 |
(14%) |
|
4.15 |
4.29 |
(3%) |
Commodity groups: |
|
|
|
|
|
|
|
Petroleum and chemicals |
4.15 |
4.68 |
(11%) |
|
4.29 |
4.16 |
3% |
Metals and minerals |
5.39 |
5.95 |
(9%) |
|
5.60 |
5.29 |
6% |
Forest products |
3.92 |
4.66 |
(16%) |
|
4.16 |
4.24 |
(2%) |
Coal |
2.92 |
3.57 |
(18%) |
|
3.13 |
3.21 |
(2%) |
Grain and fertilizers |
3.16 |
3.60 |
(12%) |
|
3.28 |
3.25 |
1% |
Intermodal |
4.21 |
4.86 |
(13%) |
|
4.16 |
4.67 |
(11%) |
Automotive |
16.90 |
20.07 |
(16%) |
|
17.15 |
18.11 |
(5%) |
|
|
|
|
|
|
|
|
Carloads (thousands) |
|
|
|
|
|
|
|
Petroleum and chemicals |
126 |
123 |
2% |
|
511 |
547 |
(7%) |
Metals and minerals |
224 |
228 |
(2%) |
|
721 |
1,025 |
(30%) |
Forest products |
100 |
116 |
(14%) |
|
403 |
511 |
(21%) |
Coal |
113 |
95 |
19% |
|
426 |
375 |
14% |
Grain and fertilizers |
147 |
143 |
3% |
|
530 |
579 |
(8%) |
Intermodal |
321 |
332 |
(3%) |
|
1,246 |
1,377 |
(10%) |
Automotive |
46 |
41 |
12% |
|
154 |
201 |
(23%) |
|
1,077 |
1,078 |
- |
|
3,991 |
4,615 |
(14%) |
Rail freight revenue / carload (dollars) |
|
|
|
|
|
|
|
Total rail freight revenue per carload |
1,559 |
1,834 |
(15%) |
|
1,662 |
1,656 |
- |
Commodity groups: |
|
|
|
|
|
|
|
Petroleum and chemicals |
2,397 |
2,919 |
(18%) |
|
2,466 |
2,461 |
- |
Metals and minerals |
844 |
1,039 |
(19%) |
|
1,010 |
927 |
9% |
Forest products |
2,710 |
3,155 |
(14%) |
|
2,846 |
2,810 |
1% |
Coal |
1,080 |
1,389 |
(22%) |
|
1,089 |
1,275 |
(15%) |
Grain and fertilizers |
2,422 |
2,664 |
(9%) |
|
2,530 |
2,387 |
6% |
Intermodal |
1,062 |
1,175 |
(10%) |
|
1,073 |
1,147 |
(6%) |
Automotive |
2,130 |
2,732 |
(22%) |
|
2,305 |
2,333 |
(1%) |
CANADIAN NATIONAL RAILWAY COMPANY |
NON-GAAP MEASURES - unaudited |
|
|
Three months ended |
|
|
Year ended | ||||||||
|
|
December 31, 2009 |
|
|
December 31, 2009 | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In millions, except per share data |
Reported |
|
Adjustments |
|
Adjusted |
|
|
Reported |
|
Adjustments |
|
Adjusted | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
1,882 |
$ |
- |
$ |
1,882 |
|
$ |
7,367 |
$ |
- |
$ |
7,367 |
Operating expenses |
|
1,229 |
|
- |
|
1,229 |
|
|
4,961 |
|
(49) |
|
4,912 |
Operating income |
|
653 |
|
- |
|
653 |
|
|
2,406 |
|
49 |
|
2,455 |
Interest expense |
|
(95) |
|
- |
|
(95) |
|
|
(412) |
|
- |
|
(412) |
Other income |
|
76 |
|
(69) |
|
7 |
|
|
267 |
|
(226) |
|
41 |
Income before income taxes |
|
634 |
|
(69) |
|
565 |
|
|
2,261 |
|
(177) |
|
2,084 |
Income tax expense |
|
(52) |
|
(89) |
|
(141) |
|
|
(407) |
|
(144) |
|
(551) |
Net income |
$ |
582 |
$ |
(158) |
$ |
424 |
|
$ |
1,854 |
$ |
(321) |
$ |
1,533 |
Operating ratio |
|
65.3% |
|
|
|
65.3% |
|
|
67.3% |
|
|
|
66.7% |
Basic earnings per share |
$ |
1.24 |
$ |
(0.33) |
$ |
0.91 |
|
$ |
3.95 |
$ |
(0.68) |
$ |
3.27 |
Diluted earnings per share |
$ |
1.23 |
$ |
(0.33) |
$ |
0.90 |
|
$ |
3.92 |
$ |
(0.68) |
$ |
3.24 |
CANADIAN NATIONAL RAILWAY COMPANY |
NON-GAAP MEASURES - unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Year ended | ||||||||
|
|
December 31, 2008 |
|
|
December 31, 2008 | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In millions, except per share data |
|
Reported |
|
Adjustments |
|
Adjusted |
|
|
Reported |
|
Adjustments |
|
Adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
2,200 |
$ |
- |
$ |
2,200 |
|
$ |
8,482 |
$ |
- |
$ |
8,482 |
Operating expenses |
|
1,380 |
|
- |
|
1,380 |
|
|
5,588 |
|
- |
|
5,588 |
Operating income |
|
820 |
|
- |
|
820 |
|
|
2,894 |
|
- |
|
2,894 |
Interest expense |
|
(110) |
|
- |
|
(110) |
|
|
(375) |
|
- |
|
(375) |
Other income |
|
19 |
|
- |
|
19 |
|
|
26 |
|
- |
|
26 |
Income before income taxes |
|
729 |
|
- |
|
729 |
|
|
2,545 |
|
- |
|
2,545 |
Income tax expense |
|
(156) |
|
(42) |
|
(198) |
|
|
(650) |
|
(117) |
|
(767) |
Net income |
$ |
573 |
$ |
(42) |
$ |
531 |
|
$ |
1,895 |
$ |
(117) |
$ |
1,778 |
Operating ratio |
|
62.7% |
|
|
|
62.7% |
|
|
65.9% |
|
|
|
65.9% |
Basic earnings per share |
$ |
1.22 |
$ |
(0.09) |
$ |
1.13 |
|
$ |
3.99 |
$ |
(0.24) |
$ |
3.75 |
Diluted earnings per share |
$ |
1.21 |
$ |
(0.09) |
$ |
1.12 |
|
$ |
3.95 |
$ |
(0.24) |
$ |
3.71 |
Three months ended |
Year ended | |||||||||||||
December 31 |
December 31 | |||||||||||||
In millions |
2009 |
2008 |
2009 |
|
|
2008 | ||||||||
|
|
|
|
|
|
|
| |||||||
Cash provided from operating activities |
$ |
679 |
$ |
500 |
$ |
2,279 |
|
$ |
2,031 | |||||
Cash used by investing activities |
(433) |
(498) |
(1,437) |
|
|
(1,400) | ||||||||
Cash provided before financing activities |
246 |
2 |
842 |
|
|
631 | ||||||||
|
|
|
|
|
|
| ||||||||
Adjustments: |
|
|
|
|
|
| ||||||||
Change in accounts receivable securitization |
- |
398 |
68 |
|
|
568 | ||||||||
Dividends paid |
(119) |
(108) |
(474) |
|
|
(436) | ||||||||
Acquisition of EJ&E |
- |
- |
373 |
|
|
- | ||||||||
Effect of foreign exchange fluctuations on U.S. dollar-denominated cash and cash equivalents |
6 |
19 |
(19) |
|
|
31 | ||||||||
Free cash flow |
$ |
133 |
$ |
311 |
$ |
790 |
|
$ |
794 |
Canadian National Railway Company |
|||||
Date: January 26, 2010 |
By: |
/s/ Cristina Circelli |
|||
Name: |
Cristina Circelli |
||||
Title: |
Deputy Corporate Secretary and
General Counsel |