Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F | Form 40-F X |
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Yes | No X |
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Yes | No X |
Indicate by check mark whether by furnishing the information contained in this Form, the Registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:
Yes | No X |
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A
Item
1
|
|
Press
Release
dated April 23, 2007, titled “CN reports diluted Q1-2007 EPS of C$0.63,
net income of C$324 million, reflecting adverse effects of severe
winter
weather and conductors’ strike”.
|
|
|
|
Item
2
|
|
Interim
Consolidated Financial Statements and Notes thereto (U.S.
GAAP)
|
|
|
|
Item
3
|
|
Management’s
Discussion And Analysis (U.S. GAAP)
|
|
|
|
Item
4
|
|
Certificate
of
CEO
|
|
|
|
Item
5
|
|
Certificate
of
CFO
|
News
|
|
North
America’s Railroad
|
FOR
IMMEDIATE
RELEASE
|
Stock
symbols: TSX: CNR / NYSE: CNI
|
www.cn.ca
|
•
|
Diluted
earnings per share of C$0.63, down five per cent from year-earlier
EPS of
C$0.66.
|
•
|
Net
income of C$324 million, a decline of 10 per cent from first-quarter
2006
net income of C$362 million.
|
•
|
Revenues
of C$1,906 million, an increase of C$9 million over first-quarter
2006
revenues of C$1,897 million.
|
•
|
Operating
ratio of 70.6 per cent, a 3.5-point increase from the same
quarter of
2006.
|
Contacts:
|
||
Media
|
Investment
Community
|
|
Mark
Hallman
|
Robert
Noorigian
|
|
System
Director, Media Relations
|
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
|
||||||||
March
31
|
||||||||
2007
|
2006
|
|||||||
(Unaudited)
|
||||||||
Revenues
|
$ |
1,906
|
$ |
1,897
|
||||
Operating
expenses
|
||||||||
Labor
and
fringe benefits
|
485
|
493
|
||||||
Purchased
services and material
|
276
|
258
|
||||||
Depreciation
and amortization
|
171
|
164
|
||||||
Fuel
|
219
|
204
|
||||||
Equipment
rents
|
66
|
47
|
||||||
Casualty
and
other
|
128
|
106
|
||||||
Total
operating expenses
|
1,345
|
1,272
|
||||||
Operating
income
|
561
|
625
|
||||||
Interest
expense
|
(88 | ) | (75 | ) | ||||
Other
income
(loss)
|
4
|
(1 | ) | |||||
Income
before
income taxes
|
477
|
549
|
||||||
Income
tax
expense
|
(153 | ) | (187 | ) | ||||
Net
income
|
$ |
324
|
$ |
362
|
||||
Earnings
per share (Note 8)
|
||||||||
Basic
|
$ |
0.64
|
$ |
0.68
|
||||
Diluted
|
$ |
0.63
|
$ |
0.66
|
||||
Weighted-average
number of shares
|
||||||||
Basic
|
510.2
|
536.1
|
||||||
Diluted
|
517.8
|
545.1
|
||||||
See
accompanying notes to unaudited consolidated financial
statements.
|
CANADIAN
NATIONAL RAILWAY COMPANY
|
|
CONSOLIDATED
BALANCE SHEET (U.S.
GAAP)
|
|
(In
millions)
|
March
31
|
December
31
|
March
31
|
||||||||||
2007
|
2006
|
2006
|
||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||
Assets
|
||||||||||||
Current
assets:
|
||||||||||||
Cash
and cash
equivalents
|
$ |
106
|
$ |
179
|
$ |
173
|
||||||
Accounts
receivable
|
508
|
692
|
551
|
|||||||||
Material
and
supplies
|
208
|
189
|
224
|
|||||||||
Deferred
income taxes
|
83
|
84
|
66
|
|||||||||
Other
|
184
|
192
|
184
|
|||||||||
1,089
|
1,336
|
1,198
|
||||||||||
Properties
|
20,988
|
21,053
|
20,175
|
|||||||||
Intangible
and
other assets
|
1,646
|
1,615
|
947
|
|||||||||
Total
assets
|
$ |
23,723
|
$ |
24,004
|
$ |
22,320
|
||||||
Liabilities
and shareholders' equity
|
||||||||||||
Current
liabilities:
|
||||||||||||
Accounts
payable and accrued charges
|
$ |
1,460
|
$ |
1,823
|
$ |
1,439
|
||||||
Current
portion of long-term debt (Note 3)
|
244
|
218
|
402
|
|||||||||
Other
|
50
|
73
|
65
|
|||||||||
1,754
|
2,114
|
1,906
|
||||||||||
Deferred
income taxes (Note
2)
|
5,025
|
5,215
|
4,846
|
|||||||||
Other
liabilities and deferred credits
|
1,532
|
1,465
|
1,506
|
|||||||||
Long-term
debt
(Note 3)
|
5,602
|
5,386
|
4,860
|
|||||||||
Shareholders'
equity:
|
||||||||||||
Common
shares
|
4,426
|
4,459
|
4,591
|
|||||||||
Accumulated
other comprehensive loss
|
(50 | ) | (44 | ) | (245 | ) | ||||||
Retained
earnings
|
5,434
|
5,409
|
4,856
|
|||||||||
9,810
|
9,824
|
9,202
|
||||||||||
Total
liabilities and shareholders' equity
|
$ |
23,723
|
$ |
24,004
|
$ |
22,320
|
||||||
See
accompanying notes to unaudited consolidated financial
statements.
|
CANADIAN
NATIONAL RAILWAY COMPANY
|
|
CONSOLIDATED
STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
(U.S. GAAP)
|
|
(In
millions)
|
Three
months ended
|
||||||||
March
31
|
||||||||
2007
|
2006
|
|||||||
(Unaudited)
|
||||||||
Common
shares (1)
|
||||||||
Balance,
beginning of period
|
$ |
4,459
|
$ |
4,580
|
||||
Stock
options
exercised and other
|
23
|
71
|
||||||
Share
repurchase programs (Note 3)
|
(56 | ) | (60 | ) | ||||
Balance,
end
of period
|
$ |
4,426
|
$ |
4,591
|
||||
Accumulated
other comprehensive loss
|
||||||||
Balance,
beginning of period
|
$ | (44 | ) | $ | (222 | ) | ||
Other
comprehensive income (loss):
|
||||||||
Unrealized
foreign exchange gain (loss) on:
|
||||||||
Translation
of
the net investment in foreign operations
|
(56 | ) | (14 | ) | ||||
Translation
of
U.S. dollar-denominated long-term debt
|
||||||||
designated
as
a hedge of the net investment in U.S. subsidiaries
|
47
|
6
|
||||||
Pension
and
other postretirement benefit plans:
|
||||||||
Amortization
of:
|
||||||||
Prior
service
cost (Note 6)
|
5
|
-
|
||||||
Net
actuarial
loss (Note 6)
|
12
|
-
|
||||||
Derivative
instruments:
|
||||||||
Decrease
in
unrealized holding gains on fuel derivative instruments
(Note
5)
|
-
|
(27 | ) | |||||
Other
comprehensive income (loss) before income taxes
|
8
|
(35 | ) | |||||
Income
tax
recovery (expense)
|
(14 | ) |
12
|
|||||
Other
comprehensive loss
|
(6 | ) | (23 | ) | ||||
Balance,
end
of period
|
$ | (50 | ) | $ | (245 | ) | ||
Retained
earnings
|
||||||||
Balance,
beginning of period
|
$ |
5,409
|
$ |
4,891
|
||||
Adoption
of
new accounting pronouncements (Note 2)
|
95
|
-
|
||||||
Restated
balance, beginning of period
|
5,504
|
4,891
|
||||||
Net
income
|
324
|
362
|
||||||
Share
repurchase programs (Note 3)
|
(287 | ) | (310 | ) | ||||
Dividends
|
(107 | ) | (87 | ) | ||||
Balance,
end
of period
|
$ |
5,434
|
$ |
4,856
|
||||
See
accompanying notes to unaudited consolidated financial
statements.
|
(1) |
During
the
first quarter of 2007, the Company issued 0.7 million common
shares as a
result of stock options exercised. At March 31, 2007, the Company had
506.6 million common shares
outstanding.
|
CANADIAN
NATIONAL RAILWAY COMPANY
|
CONSOLIDATED
STATEMENT OF CASH FLOWS (U.S. GAAP)
|
(In
millions)
|
Three
months ended
|
||||||||
March
31
|
||||||||
2007
|
2006
|
|||||||
(Unaudited)
|
||||||||
Operating
activities
|
||||||||
Net
income
|
$ |
324
|
$ |
362
|
||||
Adjustments
to
reconcile net income to net cash provided from
|
||||||||
operating
activities:
|
||||||||
Depreciation
and amortization
|
172
|
164
|
||||||
Deferred
income taxes
|
7
|
47
|
||||||
Other
changes
in:
|
||||||||
Accounts
receivable
|
176
|
70
|
||||||
Material
and
supplies
|
(19 | ) | (72 | ) | ||||
Accounts
payable and accrued charges
|
(402 | ) | (20 | ) | ||||
Other
net
current assets and liabilities
|
(18 | ) |
33
|
|||||
Other
|
23
|
35
|
||||||
Cash
provided
from operating activities
|
263
|
619
|
||||||
Investing
activities
|
||||||||
Property
additions
|
(203 | ) | (155 | ) | ||||
Other,
net
|
10
|
(54 | ) | |||||
Cash
used by
investing activities
|
(193 | ) | (209 | ) | ||||
Financing
activities
|
||||||||
Issuance
of
long-term debt
|
434
|
802
|
||||||
Reduction
of
long-term debt
|
(145 | ) | (710 | ) | ||||
Issuance
of
common shares due to exercise of stock options
|
||||||||
and
related
excess tax benefits realized
|
18
|
66
|
||||||
Repurchase
of
common shares
|
(343 | ) | (370 | ) | ||||
Dividends
paid
|
(107 | ) | (87 | ) | ||||
Cash
used by
financing activities
|
(143 | ) | (299 | ) | ||||
Net
increase (decrease) in cash and cash equivalents
|
(73 | ) |
111
|
|||||
Cash
and cash
equivalents, beginning of period
|
179
|
62
|
||||||
Cash
and cash equivalents, end of period
|
$ |
106
|
$ |
173
|
||||
Supplemental
cash flow information
|
||||||||
Net
cash
receipts from customers and other
|
$ |
2,015
|
$ |
1,921
|
||||
Net
cash
payments for:
|
||||||||
Employee
services, suppliers and other expenses
|
(1,178 | ) | (1,127 | ) | ||||
Interest
|
(114 | ) | (88 | ) | ||||
Workforce
reductions
|
(9 | ) | (16 | ) | ||||
Personal
injury and other claims
|
(20 | ) | (26 | ) | ||||
Pensions
|
(1 | ) | (1 | ) | ||||
Income
taxes
|
(430 | ) | (44 | ) | ||||
Cash
provided
from operating activities
|
$ |
263
|
$ |
619
|
||||
See
accompanying notes to unaudited consolidated financial
statements.
|
CANADIAN
NATIONAL RAILWAY COMPANY
|
NOTES
TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (U.S.
GAAP)
|
CANADIAN
NATIONAL RAILWAY COMPANY
|
NOTES
TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (U.S.
GAAP)
|
CANADIAN
NATIONAL RAILWAY COMPANY
|
NOTES
TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (U.S.
GAAP)
|
|
|
|
|
|
|
|
|
Vision
2008 Share Unit
|
|
|
Voluntary
Incentive
|
|
||||||||||||
|
|
RSUs
|
|
|
Plan
(Vision)
|
|
|
Deferral
Plan (VIDP)
|
|
|||||||||||||||
In
millions
|
|
Nonvested
|
|
|
Vested
|
|
|
Nonvested
|
|
|
Vested
|
|
|
Nonvested
|
|
|
Vested
|
|
||||||
Outstanding
at
December 31, 2006
|
|
|
2.0
|
|
|
|
-
|
|
|
|
0.8
|
|
|
|
-
|
|
|
|
0.3
|
|
|
|
1.9
|
|
Granted
|
|
|
0.7
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Forfeited
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Vested
during
period
|
|
|
(0.2
|
)
|
|
|
0.2
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Payout
|
|
|
-
|
|
|
|
(0.1
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(0.1
|
)
|
Conversion
into VIDP
|
|
|
-
|
|
|
|
(0.1
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
0.1
|
|
Outstanding
at March 31, 2007
|
|
|
2.5
|
|
|
|
-
|
|
|
|
0.8
|
|
|
|
-
|
|
|
|
0.3
|
|
|
|
1.9
|
|
In millions, unless otherwise indicated |
RSUs(1)
|
Vision (1)
|
|
VIDP (2)
|
Total
|
|||||||||||||||||||||||
Year
of
grant
|
2007
|
2006
|
2005
|
2004
|
2005
|
2003
onwards
|
|
|||||||||||||||||||||
Stock-based
compensation
expense
recognized
over
requisite
service
period
|
||||||||||||||||||||||||||||
Quarter
ended
March
31,
2007
|
$ |
8
|
$ |
3
|
$ |
4
|
$ |
2
|
$ |
1
|
$ |
5
|
$ |
23
|
||||||||||||||
Quarter
ended
March
31,
2006
|
N/A
|
$ |
2
|
$ |
6
|
$ |
2
|
$ |
6
|
$ |
13
|
$ |
29
|
|||||||||||||||
Liability
outstanding
|
||||||||||||||||||||||||||||
March
31,
2007
|
$ |
8
|
$ |
24
|
$ |
38
|
$ |
1
|
$ |
9
|
$ |
110
|
$ |
190
|
||||||||||||||
December
31,
2006
|
N/A
|
$ |
21
|
$ |
34
|
$ |
8
|
$ |
8
|
$ |
99
|
$ |
170
|
|||||||||||||||
Fair
value
per
unit
|
||||||||||||||||||||||||||||
March
31,
2007
|
$ |
30.11
|
$ |
38.02
|
$ |
50.23
|
$ |
50.92
|
$ |
20.27
|
$ |
50.92
|
N/A
|
|||||||||||||||
Fair
value
of
awards
vested
during
period
|
||||||||||||||||||||||||||||
Quarter
ended
March
31,
2007
|
$ |
-
|
$ |
-
|
$ |
-
|
$ |
5
|
$ |
-
|
$ |
1
|
$ |
6
|
||||||||||||||
Quarter
ended
March
31,
2006
|
N/A
|
$ |
-
|
$ |
-
|
$ |
-
|
$ |
-
|
$ |
2
|
$ |
2
|
|||||||||||||||
Nonvested
awards
at
March
31,
2007
|
||||||||||||||||||||||||||||
Unrecognized
compensation
cost
|
$ |
12
|
$ |
14
|
$ |
13
|
$ |
7
|
$ |
7
|
$ |
11
|
$ |
64
|
||||||||||||||
Remaining
recognition
period
(years)
|
2.75
|
1.75
|
0.75
|
1.75
|
1.75
|
3.75
|
N/A
|
|||||||||||||||||||||
Assumptions(3)
|
||||||||||||||||||||||||||||
Stock
price
($)
|
$ |
50.92
|
$ |
50.92
|
$ |
50.92
|
$ |
50.92
|
$ |
50.92
|
$ |
50.92
|
N/A
|
|||||||||||||||
Expected
stock
price
volatility
(4)
|
20 | % | 20 | % | 21 | % |
N/A
|
20 | % |
N/A
|
N/A
|
|||||||||||||||||
Expected
term
(years)
(5)
|
2.75
|
1.75
|
0.75
|
N/A
|
1.75
|
N/A
|
N/A
|
|||||||||||||||||||||
Risk-free
interest
rate
(6)
|
3.99 | % | 3.98 | % | 4.00 | % |
N/A
|
4.32 | % |
N/A
|
N/A
|
|||||||||||||||||
Dividend
rate
($)
(7)
|
$ |
0.84
|
$ |
0.84
|
$ |
0.84
|
N/A
|
$ |
0.84
|
N/A
|
N/A
|
(1)
|
Compensation
cost is based on the fair value of the awards at period-end
using the
lattice-based valuation model that uses the assumptions as presented
herein, except for time-vested RSUs.
|
(2)
|
Compensation
cost is based on intrinsic value.
|
(3)
|
Assumptions
used to determine fair value are at period-end.
|
(4)
|
Based
on
the historical volatility of the Company's stock over a period
commensurate with the expected term of the award.
|
(5)
|
Represents
the remaining period of time that awards are expected to
be
outstanding.
|
(6)
|
Based
on
the implied yield available on zero-coupon government issues
with an
equivalent term commensurate with the expected term
of
the awards.
|
(7)
|
Based
on
the annualized dividend
rate.
|
CANADIAN
NATIONAL RAILWAY COMPANY
|
NOTES
TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (U.S.
GAAP)
|
Options
outstanding
|
||||||||||||||||
Number
|
Weighted-average
|
Weighted-average
|
Aggregate
|
|||||||||||||
of
options
|
exercise
price
|
years
to
expiration
|
intrinsic
value
|
|||||||||||||
In
millions
|
In
millions
|
|||||||||||||||
Outstanding
at
December 31, 2006 (1)
|
16.9
|
$ |
23.29
|
|||||||||||||
Granted
|
0.8
|
$ |
52.70
|
|
|
|||||||||||
Forfeited
|
-
|
$ |
-
|
|
|
|||||||||||
Exercised
|
(0.7 | ) | $ |
17.08
|
||||||||||||
Outstanding
at March 31, 2007 (1)
|
17.0
|
$ |
24.93
|
5.2
|
$ |
441
|
||||||||||
Exercisable
at March 31, 2007 (1)
|
14.7
|
$ |
21.47
|
4.7
|
$ |
432
|
(1)
|
Stock
options with a U.S. dollar exercise price have been translated
to Canadian
dollars using the foreign exchange rate in effect at the balance
sheet
date.
|
CANADIAN
NATIONAL RAILWAY COMPANY
|
NOTES
TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (U.S.
GAAP)
|
In
millions, unless otherwise indicated
|
||||||||||||||||||||
Year
of grant
|
2007
|
2006
|
2005
|
Prior
to
2005
|
Total
|
|||||||||||||||
Stock-based
compensation expense recognized over requisite service
period
(1)
|
||||||||||||||||||||
Quarter
ended
March 31, 2007
|
$ |
4
|
$ |
1
|
$ |
1
|
$ |
-
|
$ |
6
|
||||||||||
Quarter
ended
March 31, 2006
|
N/A
|
$ |
1
|
$ |
1
|
$ |
3
|
$ |
5
|
|||||||||||
Fair
value per unit
|
||||||||||||||||||||
At
grant date
($)
|
$ |
13.32
|
$ |
13.80
|
$ |
9.19
|
$ |
8.61
|
N/A
|
|||||||||||
Fair
value of awards vested during period
|
||||||||||||||||||||
Quarter
ended
March 31, 2007
|
$ |
-
|
$ |
4
|
$ |
3
|
$ |
-
|
$ |
7
|
||||||||||
Quarter
ended
March 31, 2006
|
N/A
|
$ |
-
|
$ |
3
|
$ |
33
|
$ |
36
|
|||||||||||
Nonvested
awards at March 31, 2007
|
||||||||||||||||||||
Unrecognized
compensation cost
|
$ |
6
|
$ |
5
|
$ |
5
|
$ |
-
|
$ |
16
|
||||||||||
Remaining
recognition period (years)
|
3.83
|
2.85
|
1.84
|
-
|
N/A
|
|||||||||||||||
Assumptions
(1)
|
||||||||||||||||||||
Stock
price
($)
|
$ |
52.70
|
$ |
51.51
|
$ |
36.33
|
$ |
23.59
|
N/A
|
|||||||||||
Expected
stock
price volatility (2)
|
24 | % | 25 | % | 25 | % | 30 | % |
N/A
|
|||||||||||
Expected
term
(years) (3)
|
5.22
|
5.17
|
5.20
|
6.22
|
N/A
|
|||||||||||||||
Risk-free
interest rate (4)
|
4.11 | % | 4.04 | % | 3.50 | % | 5.13 | % |
N/A
|
|||||||||||
Dividend
rate
($) (5)
|
$ |
0.84
|
$ |
0.65
|
$ |
0.50
|
$ |
0.30
|
N/A
|
(1)
|
Compensation
cost is based on the grant date fair value using the Black-Scholes
option-pricing model that uses the assumptions at the grant
date.
|
(2)
|
Based
on
the historical volatility of the Company's stock over a period
commensurate with the expected term of the award.
|
(3)
|
Represents
the period of time that awards are expected to be outstanding.
The Company
uses historical data to estimate option exercise and employee
termination, and groups of employees that have similar historical
exercise
behavior are considered separately.
|
(4)
|
Based
on
the implied yield available on zero-coupon government issues
with an
equivalent term commensurate with the expected term of the
awards.
|
(5)
|
Based
on
the annualized dividend
rate.
|
CANADIAN
NATIONAL RAILWAY COMPANY
|
NOTES
TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (U.S.
GAAP)
|
In
millions
|
Three
months ended March 31,
|
2007
|
2006
|
||||||
Service
cost
|
$ |
38
|
$ |
40
|
|||||
Interest
cost
|
186
|
179
|
|||||||
Expected
return on plan assets
|
(234 | ) | (227 | ) | |||||
Amortization
of prior service cost
|
5
|
4
|
|||||||
Amortization
of net actuarial loss
|
13
|
23
|
|||||||
Net
periodic benefit cost
|
$ |
8
|
$ |
19
|
(b)
Components of net periodic benefit cost for postretirement
benefits
|
In
millions
|
Three
months ended March 31,
|
2007
|
2006
|
||||||
Service
cost
|
$ |
1
|
$ |
1
|
|||||
Interest
cost
|
4
|
4
|
|||||||
Curtailment
|
(3 | ) |
-
|
||||||
Recognized
net
actuarial gain
|
(1 | ) | (1 | ) | |||||
Net
periodic benefit cost
|
$ |
1
|
$ |
4
|
CANADIAN
NATIONAL RAILWAY COMPANY
|
NOTES
TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (U.S.
GAAP)
|
(i)
|
the
lack of
specific technical information available with respect to
many
sites;
|
(ii)
|
the
absence of
any government authority, third-party orders, or claims with
respect to
particular sites;
|
(iii)
|
the
potential
for new or changed laws and regulations and for development
of new
remediation technologies and uncertainty regarding the timing
of the work
with respect to particular sites;
|
(iv)
|
the
ability to
recover costs from any third parties with respect to particular
sites;
and
|
CANADIAN
NATIONAL RAILWAY COMPANY
|
NOTES
TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (U.S.
GAAP)
|
CANADIAN
NATIONAL RAILWAY COMPANY
|
NOTES
TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (U.S.
GAAP)
|
In
millions, except per share data
|
Three
months ended March 31,
|
2007
|
2006
|
||||||
(Unaudited)
|
|||||||||
Net
income
|
$ |
324
|
$ |
362
|
|||||
Weighted-average
shares outstanding
|
510.2
|
536.1
|
|||||||
Effect
of stock options
|
7.6
|
9.0
|
|||||||
Weighted-average
diluted shares outstanding
|
517.8
|
545.1
|
|||||||
Basic
earnings per share
|
$ |
0.64
|
$ |
0.68
|
|||||
Diluted
earnings per share
|
$ |
0.63
|
$ |
0.66
|
CANADIAN
NATIONAL RAILWAY COMPANY
|
SELECTED
RAILROAD STATISTICS (U.S.
GAAP)
|
Three
months ended
March
31
|
||||||||
2007
|
2006
|
|||||||
(Unaudited)
|
||||||||
Statistical
operating data
|
||||||||
Rail
freight
revenues ($ millions)
|
1,754
|
1,753
|
||||||
Gross
ton
miles (GTM) (millions)
|
81,741
|
86,231
|
||||||
Revenue
ton
miles (RTM) (millions)
|
44,093
|
45,661
|
||||||
Carloads
(thousands)
|
1,131
|
1,191
|
||||||
Route
miles
(includes Canada and the U.S.)
|
20,263
|
19,962
|
||||||
Employees
(end of period)
|
21,685
|
21,656
|
||||||
Employees
(average for the period)
|
21,027
|
21,521
|
||||||
Productivity
|
||||||||
Operating
ratio (%)
|
70.6
|
67.1
|
||||||
Rail
freight
revenue per RTM (cents)
|
3.98
|
3.84
|
||||||
Rail
freight
revenue per carload ($)
|
1,551
|
1,472
|
||||||
Operating
expenses per GTM (cents)
|
1.65
|
1.48
|
||||||
Labor
and
fringe benefits expense per GTM (cents)
|
0.59
|
0.57
|
||||||
GTMs
per
average number of employees (thousands)
|
3,887
|
4,007
|
||||||
Diesel
fuel
consumed (U.S. gallons in millions)
|
96
|
104
|
||||||
Average
fuel
price ($/U.S. gallon) (1)
|
2.18
|
1.88
|
||||||
GTMs
per
U.S. gallon of fuel consumed
|
851
|
829
|
||||||
Safety
indicators
|
||||||||
Injury
frequency rate per 200,000 person hours (2)
|
1.6
|
2.3
|
||||||
Accident
rate per million train miles (2)
|
2.7
|
1.5
|
||||||
Financial
ratio
|
||||||||
Debt
to
total capitalization ratio (% at end of period)
|
37.3
|
36.4
|
(1) |
2006
includes the impact of the Company's fuel hedging
program.
|
(2) |
Based
on
Federal Railroad Administration (FRA) reporting
criteria.
|
CANADIAN
NATIONAL RAILWAY COMPANY
|
SUPPLEMENTARY
INFORMATION (U.S.
GAAP)
|
Three
months ended March 31
|
||||||||||||
Variance
|
||||||||||||
2007
|
2006
|
Fav
(Unfav)
|
||||||||||
(Unaudited)
|
||||||||||||
Revenues
(in millions of dollars)
|
||||||||||||
Petroleum
and chemicals
|
303
|
292
|
4% | |||||||||
Metals
and minerals
|
198
|
200
|
(1% | ) | ||||||||
Forest
products
|
410
|
438
|
(6% | ) | ||||||||
Coal
|
89
|
85
|
5% | |||||||||
Grain
and fertilizers
|
309
|
298
|
4% | |||||||||
Intermodal
|
313
|
315
|
(1% | ) | ||||||||
Automotive
|
132
|
125
|
6% | |||||||||
Other
revenue
|
152
|
144
|
6% | |||||||||
1,906
|
1,897
|
-
|
||||||||||
Revenue
ton miles (millions)
|
||||||||||||
Petroleum
and chemicals
|
7,870
|
8,127
|
(3% | ) | ||||||||
Metals
and minerals
|
3,850
|
4,297
|
(10% | ) | ||||||||
Forest
products
|
10,105
|
10,706
|
(6% | ) | ||||||||
Coal
|
3,100
|
3,256
|
(5% | ) | ||||||||
Grain
and fertilizers
|
10,788
|
10,713
|
1% | |||||||||
Intermodal
|
7,591
|
7,758
|
(2% | ) | ||||||||
Automotive
|
789
|
804
|
(2% | ) | ||||||||
44,093
|
45,661
|
(3% | ) | |||||||||
Rail
freight revenue / RTM (cents)
|
||||||||||||
Total
rail freight revenue per RTM
|
3.98
|
3.84
|
4% | |||||||||
Commodity
groups:
|
||||||||||||
Petroleum
and chemicals
|
3.85
|
3.59
|
7% | |||||||||
Metals
and minerals
|
5.14
|
4.65
|
11% | |||||||||
Forest
products
|
4.06
|
4.09
|
(1% | ) | ||||||||
Coal
|
2.87
|
2.61
|
10% | |||||||||
Grain
and fertilizers
|
2.86
|
2.78
|
3% | |||||||||
Intermodal
|
4.12
|
4.06
|
1% | |||||||||
Automotive
|
16.73
|
15.55
|
8% | |||||||||
Carloads
(thousands)
|
||||||||||||
Petroleum
and chemicals
|
146
|
150
|
(3% | ) | ||||||||
Metals
and minerals
|
231
|
235
|
(2% | ) | ||||||||
Forest
products
|
152
|
177
|
(14% | ) | ||||||||
Coal
|
90
|
110
|
(18% | ) | ||||||||
Grain
and fertilizers
|
141
|
141
|
-
|
|||||||||
Intermodal
|
305
|
308
|
(1% | ) | ||||||||
Automotive
|
66
|
70
|
(6% | ) | ||||||||
1,131
|
1,191
|
(5% | ) | |||||||||
Rail
freight revenue / carload (dollars)
|
||||||||||||
Total
rail freight revenue per carload
|
1,551
|
1,472
|
5% | |||||||||
Commodity
groups:
|
||||||||||||
Petroleum
and chemicals
|
2,075
|
1,947
|
7% | |||||||||
Metals
and minerals
|
857
|
851
|
1% | |||||||||
Forest
products
|
2,697
|
2,475
|
9% | |||||||||
Coal
|
989
|
773
|
28% | |||||||||
Grain
and fertilizers
|
2,191
|
2,113
|
4% | |||||||||
Intermodal
|
1,026
|
1,023
|
-
|
|||||||||
Automotive
|
2,000
|
1,786
|
12% |
CANADIAN
NATIONAL RAILWAY COMPANY
|
NON-GAAP
MEASURE - unaudited
|
In
millions
|
Three
months ended March 31,
|
2007
|
2006
|
||||||
Cash
provided
from operating activities
|
$ |
263
|
$ |
619
|
|||||
Cash
used by
investing activities
|
(193 | ) | (209 | ) | |||||
Cash
provided
before financing activities
|
70
|
410
|
|||||||
Adjustments:
|
|||||||||
Change
in
accounts receivable securitization (1)
|
(139 | ) | (5 | ) | |||||
Dividends
paid
|
(107 | ) | (87 | ) | |||||
Free
cash
flow
|
$ | (176 | ) | $ |
318
|
||||
(1)
Changes in the Company's accounts receivable securitization
program are
considered a financing activity.
|
CANADIAN
NATIONAL RAILWAY COMPANY
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS (U.S.
GAAP)
|
CANADIAN
NATIONAL RAILWAY COMPANY
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS (U.S.
GAAP)
|
CANADIAN
NATIONAL RAILWAY COMPANY
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS (U.S.
GAAP)
|
Three
months ended March 31
|
||||||||
$
in
millions, except per share data, or unless
otherwise
indicated
|
2007
|
2006
|
||||||
(Unaudited)
|
||||||||
Financial
results
|
||||||||
Revenues
|
$ |
1,906
|
$ |
1,897
|
||||
Operating
income
|
$ |
561
|
$ |
625
|
||||
Net
income
|
$ |
324
|
$ |
362
|
||||
Operating
ratio
|
70.6% | 67.1% | ||||||
Basic
earnings
per share
|
$ |
0.64
|
$ |
0.68
|
||||
Diluted
earnings per share
|
$ |
0.63
|
$ |
0.66
|
||||
Dividend
declared per share
|
$ |
0.2100
|
$ |
0.1625
|
||||
Financial
position
|
||||||||
Total
assets
|
$ |
23,723
|
$ |
22,320
|
||||
Total
long-term financial liabilities
|
$ |
12,159
|
$ |
11,212
|
||||
Statistical
operating data and productivity measures
|
||||||||
Employees
(average for the period )
|
21,027
|
21,521
|
||||||
Gross
ton
miles (GTM) per average number of employees
(thousands
)
|
3,887
|
4,007
|
||||||
GTMs
per U.S.
gallon of fuel consumed
|
851
|
829
|
||||||
CANADIAN
NATIONAL RAILWAY COMPANY
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS (U.S.
GAAP)
|
In
millions, unless otherwise indicated
|
Three
months ended March 31,
|
2007
|
2006
|
%Δ
|
|||||||||
(Unaudited)
|
|||||||||||||
Rail
freight
revenue
|
$ |
1,754
|
$ |
1,753
|
-
|
||||||||
Other
revenue
|
152
|
144
|
6% | ||||||||||
Total
revenues
|
$ |
1,906
|
$ |
1,897
|
-
|
||||||||
Rail
freight revenue:
|
|||||||||||||
Petroleum
and
chemicals
|
$ |
303
|
$ |
292
|
4% | ||||||||
Metals
and
minerals
|
198
|
200
|
(1% | ) | |||||||||
Forest
products
|
410
|
438
|
(6% | ) | |||||||||
Coal
|
89
|
85
|
5% | ||||||||||
Grain
and
fertilizers
|
309
|
298
|
4% | ||||||||||
Intermodal
|
313
|
315
|
(1% | ) | |||||||||
Automotive
|
132
|
125
|
6% | ||||||||||
Total
rail
freight revenue
|
$ |
1,754
|
$ |
1,753
|
-
|
||||||||
Total
revenue
ton miles (RTM)
|
44,093
|
45,661
|
(3% | ) | |||||||||
Rail
freight
revenue/RTM (cents)
|
3.98
|
3.84
|
4% |
CANADIAN
NATIONAL RAILWAY COMPANY
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS (U.S.
GAAP)
|
Three
months ended March 31,
|
2007
|
2006
|
%Δ
|
||||||||||
Revenues
(millions)
|
$ |
303
|
$ |
292
|
4% | ||||||||
RTMs
(millions)
|
7,870
|
8,127
|
(3% | ) | |||||||||
Revenue/RTM
(cents)
|
3.85
|
3.59
|
7% |
Three
months ended March 31,
|
2007
|
2006
|
%Δ
|
||||||||||
Revenues
(millions)
|
$ |
198
|
$ |
200
|
(1% | ) | |||||||
RTMs
(millions)
|
3,850
|
4,297
|
(10% | ) | |||||||||
Revenue/RTM
(cents)
|
5.14
|
4.65
|
11% |
Three
months ended March 31,
|
2007
|
2006
|
%Δ
|
||||||||||
Revenues
(millions)
|
$ |
410
|
$ |
438
|
(6% | ) | |||||||
RTMs
(millions)
|
10,105
|
10,706
|
(6% | ) | |||||||||
Revenue/RTM
(cents)
|
4.06
|
4.09
|
(1% | ) |
CANADIAN
NATIONAL RAILWAY COMPANY
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS (U.S.
GAAP)
|
Three
months ended March 31,
|
2007
|
2006
|
%Δ
|
||||||||||
Revenues
(millions)
|
$ |
89
|
$ |
85
|
5% | ||||||||
RTMs
(millions)
|
3,100
|
3,256
|
(5% | ) | |||||||||
Revenue/RTM
(cents)
|
2.87
|
2.61
|
10% |
Three
months ended March 31,
|
2007
|
2006
|
%Δ
|
||||||||||
Revenues
(millions)
|
$ |
309
|
$ |
298
|
4% | ||||||||
RTMs
(millions)
|
10,788
|
10,713
|
1% | ||||||||||
Revenue/RTM
(cents)
|
2.86
|
2.78
|
3% |
CANADIAN
NATIONAL RAILWAY COMPANY
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS (U.S.
GAAP)
|
Three
months ended March 31,
|
2007
|
2006
|
%Δ
|
||||||||||
Revenues
(millions)
|
$ |
313
|
$ |
315
|
(1% | ) | |||||||
RTMs
(millions)
|
7,591
|
7,758
|
(2% | ) | |||||||||
Revenue/RTM
(cents)
|
4.12
|
4.06
|
1% |
Three
months ended March 31,
|
2007
|
2006
|
%Δ
|
||||||||||
Revenues
(millions)
|
$ |
132
|
$ |
125
|
6% | ||||||||
RTMs
(millions)
|
789
|
804
|
(2% | ) | |||||||||
Revenue/RTM
(cents)
|
16.73
|
15.55
|
8% |
CANADIAN
NATIONAL RAILWAY COMPANY
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS (U.S.
GAAP)
|
Percentage
of
revenues
|
|||||||||||||||||||||
In
millions
|
Three
months ended March 31,
|
2007
|
2006
|
%Δ
|
2007
|
2006
|
|||||||||||||||
(Unaudited)
|
|||||||||||||||||||||
Labor
and
fringe benefits
|
$ |
485
|
$ |
493
|
2% | 25.4% | 26.0% | ||||||||||||||
Purchased
services and material
|
276
|
258
|
(7% | ) | 14.5% | 13.6% | |||||||||||||||
Depreciation
and amortization
|
171
|
164
|
(4% | ) | 9.0% | 8.6% | |||||||||||||||
Fuel
|
219
|
204
|
(7% | ) | 11.5% | 10.8% | |||||||||||||||
Equipment
rents
|
66
|
47
|
(40% | ) | 3.5% | 2.5% | |||||||||||||||
Casualty
and
other
|
128
|
106
|
(21% | ) | 6.7% | 5.6% | |||||||||||||||
Total
|
$ |
1,345
|
$ |
1,272
|
(6% | ) | 70.6% | 67.1% |
CANADIAN
NATIONAL RAILWAY COMPANY
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS (U.S.
GAAP)
|
In
millions, except per share data
|
||||||||||||||||||||||||||||||||
2007
|
2006
|
2005
|
||||||||||||||||||||||||||||||
Quarter
|
Quarters
|
Quarters
|
||||||||||||||||||||||||||||||
First
|
Fourth
|
Third
|
Second
|
First
|
Fourth
|
Third
|
Second
|
|||||||||||||||||||||||||
Revenues
|
$ |
1,906
|
$ |
2,000
|
$ |
2,032
|
$ |
2,000
|
$ |
1,897
|
$ |
1,937
|
$ |
1,858
|
$ |
1,894
|
||||||||||||||||
Operating
income
|
$ |
561
|
$ |
756
|
$ |
844
|
$ |
805
|
$ |
625
|
$ |
720
|
$ |
665
|
$ |
713
|
||||||||||||||||
Net
income
|
$ |
324
|
$ |
499
|
$ |
497
|
$ |
729
|
$ |
362
|
$ |
430
|
$ |
411
|
$ |
416
|
||||||||||||||||
Basic
earnings
per share
|
$ |
0.64
|
$ |
0.97
|
$ |
0.95
|
$ |
1.38
|
$ |
0.68
|
$ |
0.80
|
$ |
0.75
|
$ |
0.75
|
||||||||||||||||
Diluted
earnings per share
|
$ |
0.63
|
$ |
0.95
|
$ |
0.94
|
$ |
1.35
|
$ |
0.66
|
$ |
0.78
|
$ |
0.74
|
$ |
0.73
|
||||||||||||||||
Dividend
declared per share
|
$ |
0.2100
|
$ |
0.1625
|
$ |
0.1625
|
$ |
0.1625
|
$ |
0.1625
|
$ |
0.1250
|
$ |
0.1250
|
$ |
0.1250
|
CANADIAN
NATIONAL RAILWAY COMPANY
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS (U.S.
GAAP)
|
CANADIAN
NATIONAL RAILWAY COMPANY
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS (U.S.
GAAP)
|
In
millions
|
Three
months ended March 31,
|
2007
|
2006
|
||||||
Track
and
roadway
|
$ |
147
|
$ |
112
|
|||||
Rolling
stock
|
30
|
111
|
|||||||
Buildings
|
6
|
5
|
|||||||
Information
technology
|
17
|
12
|
|||||||
Other
|
9
|
11
|
|||||||
Gross
property
additions
|
209
|
251
|
|||||||
Less:
capital leases
|
6
|
96
|
|||||||
Property
additions
|
$ |
203
|
$ |
155
|
In
millions
|
Three
months ended March 31,
|
2007
|
2006
|
||||||
Cash
provided
from operating activities
|
$ |
263
|
$ |
619
|
|||||
Cash
used by
investing activities
|
(193 | ) | (209 | ) | |||||
Cash
provided
before financing activities
|
70
|
410
|
|||||||
Adjustments:
|
|||||||||
Change
in
accounts receivable securitization (a)
|
(139 | ) | (5 | ) | |||||
Dividends
paid
|
(107 | ) | (87 | ) | |||||
Free
cash
flow
|
$ | (176 | ) | $ |
318
|
(a)
Changes in the Company's accounts receivable securitization
program are
considered a financing
activity.
|
CANADIAN
NATIONAL RAILWAY COMPANY
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS (U.S.
GAAP)
|
March
31,
|
2007
|
2006
|
|||||||
Debt-to-total
capitalization ratio (a)
|
37.3% | 36.4% | |||||||
Add:
Present value of operating lease commitments plus
securitization
financing (b)
|
4.2% | 5.4% | |||||||
Adjusted
debt-to-total capitalization ratio (c)
|
41.5% | 41.8% |
(a) |
Debt-to-total
capitalization is calculated as total long-term debt plus current
portion
of long-term debt divided by the sum of total debt plus
total shareholders’ equity.
|
(b) |
The
operating lease commitments have been discounted using the
Company’s
implicit interest rate for each of the periods
presented.
|
(c) |
Adjusted
debt-to-total capitalization is calculated as adjusted debt
(total
long-term debt, plus current portion of long-term debt, plus
the present
value of operating lease commitments, plus securitization
financing)
divided by the sum of adjusted debt plus total shareholders’
equity.
|
CANADIAN
NATIONAL RAILWAY COMPANY
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS (U.S.
GAAP)
|
2012
&
|
||||||||||||||||||||||||||||
In
millions
|
Total
|
2007
|
2008
|
2009
|
2010
|
2011
|
thereafter
|
|||||||||||||||||||||
Long-term
debt
obligations (a)
|
$ |
4,847
|
$ |
59
|
$ |
200
|
$ |
347
|
$ |
-
|
$ |
768
|
$ |
3,473
|
||||||||||||||
Interest
on
long-term debt obligations
|
5,733
|
213
|
288
|
281
|
266
|
262
|
4,423
|
|||||||||||||||||||||
Capital
lease
obligations (b)
|
1,335
|
191
|
115
|
134
|
76
|
144
|
675
|
|||||||||||||||||||||
Operating
lease obligations (c)
|
687
|
134
|
147
|
115
|
94
|
67
|
130
|
|||||||||||||||||||||
Purchase
obligations (d)
|
781
|
549
|
124
|
53
|
47
|
8
|
-
|
|||||||||||||||||||||
Other
long-term liabilities reflected on
|
||||||||||||||||||||||||||||
the
balance
sheet (e)
|
1,026
|
70
|
70
|
53
|
47
|
44
|
742
|
|||||||||||||||||||||
Total
obligations
|
$ |
14,409
|
$ |
1,216
|
$ |
944
|
$ |
983
|
$ |
530
|
$ |
1,293
|
$ |
9,443
|
(a) |
Presented
net of unamortized discounts, of which $836 million relates
to
non-interest bearing Notes due in 2094, and excludes capital
lease
obligations of $999 million which are included in “Capital lease
obligations.”
|
(b) |
Includes
$999 million of minimum lease payments and $336 million of
imputed
interest at rates ranging from 3.0% to 7.9%.
|
(c) |
Includes
minimum rental payments for operating leases having initial
non-cancelable
lease terms of one year or more. The Company also has operating lease
agreements for its automotive fleet with minimum one-year non-cancelable
terms for which its practice is to renew monthly thereafter. The
estimated annual rental payments for such leases are approximately
$30
million and generally extend over five
years.
|
(d) |
Includes
commitments for railroad ties, rail, freight cars, locomotives
and other
equipment and services, and outstanding information technology
service
contracts and licenses.
|
(e) |
Includes
expected payments for workers’ compensation, workforce reductions,
postretirement benefits other than pensions and environmental
liabilities that have been classified as contractual settlement
agreements.
|
CANADIAN
NATIONAL RAILWAY COMPANY
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS (U.S.
GAAP)
|
CANADIAN
NATIONAL RAILWAY COMPANY
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS (U.S.
GAAP)
|
CANADIAN
NATIONAL RAILWAY COMPANY
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS (U.S.
GAAP)
|
March
31
|
December
31
|
March
31
|
||||||||||
In
millions
|
2007
|
2006
|
2006
|
|||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||
Pension
asset
|
$ |
1,292
|
$ |
1,275
|
$ |
607
|
||||||
Pension
liability
|
203
|
195
|
154
|
|||||||||
Other
postretirement benefits liability
|
285
|
286
|
313
|
|||||||||
Provision
for
personal injury and other claims
|
613
|
602
|
659
|
|||||||||
Provision
for
environmental costs
|
121
|
131
|
128
|
|||||||||
Net
deferred
income tax provision
|
4,942
|
5,131
|
4,780
|
|||||||||
Properties
|
20,988
|
21,053
|
20,175
|
CANADIAN
NATIONAL RAILWAY COMPANY
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS (U.S.
GAAP)
|
CANADIAN
NATIONAL RAILWAY COMPANY
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS (U.S.
GAAP)
|
CANADIAN
NATIONAL RAILWAY COMPANY
|
MANAGEMENT’S
DISCUSSION
AND ANALYSIS (U.S.
GAAP)
|
CANADIAN
NATIONAL RAILWAY COMPANY
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS (U.S.
GAAP)
|
CANADIAN
NATIONAL RAILWAY COMPANY
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS (U.S.
GAAP)
|
CANADIAN
NATIONAL RAILWAY COMPANY
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS (U.S.
GAAP)
|
(1) |
I
have
reviewed this report on Form 6-K of Canadian National Railway
Company;
|
(2) |
Based
on my
knowledge, this report does not contain any untrue statement
of a material
fact or omit to state a material fact necessary to make the
statements
made, in light of the circumstances under which such statements
were made,
not misleading with respect to the period covered by this
report;
|
(3) |
Based
on my
knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects
the
financial condition, results of operations and cash flows of
the
registrant as of, and for, the periods presented in this
report;
|
(4) |
The
registrant’s other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures
(as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and
internal
control over financial reporting (as defined in Exchange Act
Rules
13a-15(f) and 15d-15(f)) for the registrant and
have:
|
(a) |
Designed
such
disclosure controls and procedures, or caused such disclosure
controls and
procedures to be designed under our supervision, to ensure
that material
information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities,
particularly during the period in which this report is being
prepared;
|
(b) |
Designed
such
internal control over financial reporting, or caused such internal
control
over financial reporting to be designed under our supervision,
to provide
reasonable assurance regarding the reliability of financial
reporting and
the preparation of financial statements for external purposes
in
accordance with generally accepted accounting
principles;
|
(c) |
Evaluated
the
effectiveness of the registrant’s disclosure controls and procedures and
presented in this report our conclusions about the effectiveness
of the
disclosure controls and procedures, as of the end of the period
covered by
this report based on such evaluation;
and
|
(d) |
Disclosed
in
this report any change in the registrant’s internal control over financial
reporting that occurred during the registrant’s most recent fiscal quarter
that has materially affected, or is reasonably likely to materially
affect, the registrant’s internal control over financial reporting;
and
|
(5) |
The
registrant's other certifying officer and I have disclosed,
based on our
most recent evaluation of internal control over financial reporting,
to
the registrant's auditors and the audit committee of the registrant's
board of directors (or persons performing the equivalent
functions):
|
(a) |
All
significant deficiencies and material weaknesses in the design
or
operation of internal control over financial reporting which
are
reasonably likely to adversely affect the registrant's ability
to record,
process, summarize and report financial information;
and
|
(b) |
Any
fraud,
whether or not material, that involves management or other
employees who
have a significant role in the registrant's internal control
over
financial reporting.
|
/s/ E. Hunter Harrison |
E.
Hunter
Harrison
|
President
and
Chief Executive Officer
|
(1)
|
I
have
reviewed this report on Form 6-K of Canadian National Railway
Company;
|
(2)
|
Based
on my
knowledge, this report does not contain any untrue statement
of a material
fact or omit to state a material fact necessary to make the
statements
made, in light of the circumstances under which such statements
were made,
not misleading with respect to the period covered by this
report;
|
(3)
|
Based
on my
knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects
the
financial condition, results of operations and cash flows of
the
registrant as of, and for, the periods presented in this
report;
|
(4)
|
The
registrant’s other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures
(as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and
internal
control over financial reporting (as defined in Exchange Act
Rules
13a-15(f) and 15d-15(f)) for the registrant and
have:
|
(a)
|
Designed
such
disclosure controls and procedures, or caused such disclosure
controls and
procedures to be designed under our supervision, to ensure
that material
information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities,
particularly during the period in which this report is being
prepared;
|
(b)
|
Designed
such
internal control over financial reporting, or caused such internal
control
over financial reporting to be designed under our supervision,
to provide
reasonable assurance regarding the reliability of financial
reporting and
the preparation of financial statements for external purposes
in
accordance with generally accepted accounting
principles;
|
(c)
|
Evaluated
the
effectiveness of the registrant’s disclosure controls and procedures and
presented in this report our conclusions about the effectiveness
of the
disclosure controls and procedures, as of the end of the period
covered by
this report based on such evaluation;
and
|
(d)
|
Disclosed
in
this report any change in the registrant’s internal control over financial
reporting that occurred during the registrant’s most recent fiscal quarter
that has materially affected, or is reasonably likely to materially
affect, the registrant’s internal control over financial reporting;
and
|
(5) |
The
registrant's other certifying officer and I have disclosed,
based on our
most recent evaluation of internal control over financial reporting,
to
the registrant's auditors and the audit committee of the registrant's
board of directors (or persons performing the equivalent
functions):
|
(a) |
All
significant deficiencies and material weaknesses in the design
or
operation of internal control over financial reporting which
are
reasonably likely to adversely affect the registrant's ability
to record,
process, summarize and report financial information;
and
|
(b) |
Any
fraud,
whether or not material, that involves management or other
employees who
have a significant role in the registrant's internal control
over
financial reporting.
|
/s/
Claude
Mongeau
|
Claude Mongeau |
Executive
Vice-President and Chief
|
Financial
Officer
|
Canadian National Railway Company | ||||
Date: | April 30, 2007 | By: | /s/ Cristina Circelli | |
|
||||
Name: | Cristina Circelli | |||
Title: | Deputy
Corporate Secretary and General Counsel |