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
1. | News Release dated January 22, 2008 entitled, "CN reports Q4-2007 net income of C$833 million, or C$1.68 per diluted share, including C$0.78 per share in benefits from favorable tax adjustments and major asset sales". |
▪
|
Diluted
earnings per share were C$1.68, including a C$0.57 per share
benefit from
a deferred income tax recovery, C$0.13 per share from the sale
of CN’s
Central Station Complex (CSC) in Montreal, and C$0.08 per share
from the
sale of the Company’s investment in English Welsh and Scottish Railway
(EWS). Excluding these items, CN reported adjusted diluted
EPS of C$0.90,
which was flat compared with adjusted diluted EPS for the fourth
quarter
of 2006.(1)
|
▪
|
Net
income was C$833 million, which included a deferred income
tax recovery of
C$284 million, as well as after-tax gains of C$64 million on
the CSC sale
and C$41 million from the EWS investment sale. Excluding these
items,
adjusted net income was C$444 million.(1)
|
▪
|
2006
fourth-quarter net income was C$499 million, including a deferred
income
tax recovery of C$27 million, or five cents per diluted share.
Excluding
the deferred income tax recovery, fourth-quarter 2006 adjusted
net income
was C$472 million (adjusted diluted EPS of C$0.90).(1)
|
▪
|
Fourth-quarter
2007 revenues declined three per cent to C$1,941 million, with
operating
expenses declining three per cent to C$1,205
million.
|
▪
|
Operating
income for the final quarter of 2007 declined three per cent
to C$736
million, while CN’s operating ratio was essentially flat at 62.1 per
cent.
|
▪
|
The
strengthening Canadian dollar relative to the U.S. dollar,
which affected
the conversion of CN’s U.S. dollar-denominated revenues and expenses,
resulted in a reduction to fourth-quarter 2007 net income of
approximately
C$25 million, or C$0.05 per diluted
share.
|
Contacts:
|
||
Media
|
Investment
Community
|
|
Mark
Hallman
|
Robert
Noorigian
|
|
Director,
Communications, Media
|
Vice-President,
Investor Relations
|
|
(905)
669-3384
|
(514)
399-0052
|
Three
months ended
|
Year
ended
|
|||||||||||||||
December
31
|
December
31
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
(Unaudited)
|
||||||||||||||||
Revenues
|
$ |
1,941
|
$ |
2,000
|
$ |
7,897
|
$ |
7,929
|
||||||||
Operating
expenses
|
||||||||||||||||
Labor
and
fringe benefits
|
340
|
474
|
1,701
|
1,823
|
||||||||||||
Purchased
services and material
|
259
|
271
|
1,045
|
1,027
|
||||||||||||
Fuel
|
307
|
227
|
1,026
|
892
|
||||||||||||
Depreciation
and amortization
|
173
|
167
|
677
|
650
|
||||||||||||
Equipment
rents
|
60
|
63
|
247
|
198
|
||||||||||||
Casualty
and
other
|
66
|
42
|
325
|
309
|
||||||||||||
Total
operating expenses
|
1,205
|
1,244
|
5,021
|
4,899
|
||||||||||||
Operating
income
|
736
|
756
|
2,876
|
3,030
|
||||||||||||
Interest
expense
|
(85 | ) | (80 | ) | (336 | ) | (312 | ) | ||||||||
Other
income
|
159
|
27
|
166
|
11
|
||||||||||||
Income
before
income taxes
|
810
|
703
|
2,706
|
2,729
|
||||||||||||
Income
tax
recovery (expense)
|
23
|
(204 | ) | (548 | ) | (642 | ) | |||||||||
Net
income
|
$ |
833
|
$ |
499
|
$ |
2,158
|
$ |
2,087
|
||||||||
Earnings
per share
|
||||||||||||||||
Basic
|
$ |
1.70
|
$ |
0.97
|
$ |
4.31
|
$ |
3.97
|
||||||||
Diluted
|
$ |
1.68
|
$ |
0.95
|
$ |
4.25
|
$ |
3.91
|
||||||||
Weighted-average
number of shares
|
||||||||||||||||
Basic
|
489.8
|
515.5
|
501.2
|
525.9
|
||||||||||||
Diluted
|
495.9
|
523.6
|
508.0
|
534.3
|
December
31
|
December
31
|
|||||||
2007
|
2006
|
|||||||
(Unaudited)
|
||||||||
Assets
|
||||||||
Current
assets:
|
||||||||
Cash
and cash
equivalents
|
$ |
310
|
$ |
179
|
||||
Accounts
receivable
|
370
|
692
|
||||||
Material
and
supplies
|
162
|
189
|
||||||
Deferred
income taxes
|
68
|
84
|
||||||
Other
|
138
|
192
|
||||||
1,048
|
1,336
|
|||||||
Properties
|
20,413
|
21,053
|
||||||
Intangible
and
other assets
|
1,999
|
1,615
|
||||||
Total
assets
|
$ |
23,460
|
$ |
24,004
|
||||
Liabilities
and shareholders' equity
|
||||||||
Current
liabilities:
|
||||||||
Accounts
payable and accrued charges
|
$ |
1,282
|
$ |
1,823
|
||||
Current
portion of long-term debt
|
254
|
218
|
||||||
Other
|
54
|
73
|
||||||
1,590
|
2,114
|
|||||||
Deferred
income taxes
|
4,908
|
5,215
|
||||||
Other
liabilities and deferred credits
|
1,422
|
1,465
|
||||||
Long-term
debt
|
5,363
|
5,386
|
||||||
Shareholders'
equity:
|
||||||||
Common
shares
|
4,283
|
4,459
|
||||||
Accumulated
other comprehensive loss
|
(31 | ) | (44 | ) | ||||
Retained
earnings
|
5,925
|
5,409
|
||||||
10,177
|
9,824
|
|||||||
Total
liabilities and shareholders' equity
|
$ |
23,460
|
$ |
24,004
|
Three
months ended
|
Year
ended
|
|||||||||||||||
December
31
|
December
31
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
(Unaudited)
|
||||||||||||||||
Common
shares
|
||||||||||||||||
Balance,
beginning of period
|
$ |
4,359
|
$ |
4,476
|
$ |
4,459
|
$ |
4,580
|
||||||||
Stock
options
exercised and other
|
6
|
43
|
89
|
133
|
||||||||||||
Share
repurchase programs
|
(82 | ) | (60 | ) | (265 | ) | (254 | ) | ||||||||
Balance,
end
of period
|
$ |
4,283
|
$ |
4,459
|
$ |
4,283
|
$ |
4,459
|
||||||||
Accumulated
other comprehensive loss
|
||||||||||||||||
Balance,
beginning of period
|
$ | (257 | ) | $ | (520 | ) | $ | (44 | ) | $ | (222 | ) | ||||
Other
comprehensive income (loss):
|
||||||||||||||||
Unrealized
foreign exchange gain (loss) on:
|
||||||||||||||||
Translation
of
the net investment in foreign operations
|
(90 | ) |
246
|
(1,004 | ) |
32
|
||||||||||
Translation
of
U.S. dollar-denominated long-term debt
|
||||||||||||||||
designated
as
a hedge of the net investment in U.S. subsidiaries
|
22
|
(196 | ) |
788
|
(33 | ) | ||||||||||
Pension
and
other postretirement benefit plans:
|
||||||||||||||||
Net
actuarial
gain arising during the period
|
391
|
-
|
391
|
-
|
||||||||||||
Prior
service
cost arising during the period
|
(12 | ) |
-
|
(12 | ) |
-
|
||||||||||
Amortization
of net actuarial loss included in net periodic benefit
cost
|
11
|
-
|
49
|
-
|
||||||||||||
Amortization
of prior service cost included in net periodic benefit
cost
|
5
|
-
|
21
|
-
|
||||||||||||
Minimum
pension liability adjustment
|
-
|
1
|
-
|
1
|
||||||||||||
Derivative
instruments
|
(1 | ) |
-
|
(1 | ) | (57 | ) | |||||||||
Other
comprehensive income (loss) before income taxes
|
326
|
51
|
232
|
(57 | ) | |||||||||||
Income
tax
recovery (expense)
|
(100 | ) |
11
|
(219 | ) | (179 | ) | |||||||||
Other
comprehensive income (loss)
|
226
|
62
|
13
|
(236 | ) | |||||||||||
Adjustment
to
reflect the funded status of benefit plans:
|
||||||||||||||||
Net
actuarial
gain (net of income tax expense of $(200) for 2006)
|
-
|
434
|
-
|
434
|
||||||||||||
Prior
service
cost (net of income tax recovery of $14 for 2006)
|
-
|
(31 | ) |
-
|
(31 | ) | ||||||||||
Reversal
of
minimum pension liability adjustment (net of income
|
||||||||||||||||
tax
expense of
$(6) for 2006)
|
-
|
11
|
-
|
11
|
||||||||||||
Balance,
end
of period
|
$ | (31 | ) | $ | (44 | ) | $ | (31 | ) | $ | (44 | ) | ||||
Retained
earnings
|
||||||||||||||||
Balance,
beginning of period
|
$ |
5,557
|
$ |
5,306
|
$ |
5,409
|
$ |
4,891
|
||||||||
Adoption
of
new accounting pronouncements (1)
|
-
|
-
|
95
|
-
|
||||||||||||
Restated
balance, beginning of period
|
5,557
|
5,306
|
5,504
|
4,891
|
||||||||||||
Net
income
|
833
|
499
|
2,158
|
2,087
|
||||||||||||
Share
repurchase programs
|
(363 | ) | (313 | ) | (1,319 | ) | (1,229 | ) | ||||||||
Dividends
|
(102 | ) | (83 | ) | (418 | ) | (340 | ) | ||||||||
Balance,
end
of period
|
$ |
5,925
|
$ |
5,409
|
$ |
5,925
|
$ |
5,409
|
Three
months ended
|
Year
ended
|
|||||||||||||||
December
31
|
December
31
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
(Unaudited)
|
||||||||||||||||
Operating
activities
|
||||||||||||||||
Net
income
|
$ |
833
|
$ |
499
|
$ |
2,158
|
$ |
2,087
|
||||||||
Adjustments
to
reconcile net income to net cash provided from
|
||||||||||||||||
operating
activities:
|
||||||||||||||||
Depreciation
and amortization
|
172
|
167
|
678
|
653
|
||||||||||||
Deferred
income taxes
|
(207 | ) |
23
|
(82 | ) |
3
|
||||||||||
Gain
on sale
of Central Station Complex
|
(92 | ) |
-
|
(92 | ) |
-
|
||||||||||
Gain
on sale
of investment in English Welsh and Scottish Railway
|
(61 | ) |
-
|
(61 | ) |
-
|
||||||||||
Other
changes
in:
|
||||||||||||||||
Accounts
receivable
|
267
|
403
|
229
|
(17 | ) | |||||||||||
Material
and
supplies
|
44
|
18
|
18
|
(36 | ) | |||||||||||
Accounts
payable and accrued charges
|
120
|
48
|
(351 | ) |
197
|
|||||||||||
Other
net
current assets and liabilities
|
(12 | ) | (34 | ) |
39
|
58
|
||||||||||
Other
|
(122 | ) | (61 | ) | (119 | ) |
6
|
|||||||||
Cash
provided
from operating activities
|
942
|
1,063
|
2,417
|
2,951
|
||||||||||||
Investing
activities
|
||||||||||||||||
Property
additions
|
(490 | ) | (472 | ) | (1,387 | ) | (1,298 | ) | ||||||||
Acquisitions,
net of cash acquired
|
(25 | ) | (26 | ) | (25 | ) | (84 | ) | ||||||||
Sale
of
Central Station Complex
|
351
|
-
|
351
|
-
|
||||||||||||
Sale
of
investment in English Welsh and Scottish Railway
|
114
|
-
|
114
|
-
|
||||||||||||
Other,
net
|
26
|
14
|
52
|
33
|
||||||||||||
Cash
used by
investing activities
|
(24 | ) | (484 | ) | (895 | ) | (1,349 | ) | ||||||||
Financing
activities
|
||||||||||||||||
Issuance
of
long-term debt
|
846
|
183
|
4,171
|
3,308
|
||||||||||||
Reduction
of
long-term debt
|
(1,120 | ) | (234 | ) | (3,589 | ) | (3,089 | ) | ||||||||
Issuance
of
common shares due to exercise of stock options
|
||||||||||||||||
and
related
excess tax benefits realized
|
4
|
42
|
77
|
120
|
||||||||||||
Repurchase
of
common shares
|
(445 | ) | (373 | ) | (1,584 | ) | (1,483 | ) | ||||||||
Dividends
paid
|
(102 | ) | (83 | ) | (418 | ) | (340 | ) | ||||||||
Cash
used by
financing activities
|
(817 | ) | (465 | ) | (1,343 | ) | (1,484 | ) | ||||||||
Effect
of
foreign exchange fluctuations on U.S. dollar-denominated
|
||||||||||||||||
cash
and cash
equivalents
|
(5 | ) |
9
|
(48 | ) | (1 | ) | |||||||||
Net
increase in cash and cash equivalents
|
96
|
123
|
131
|
117
|
||||||||||||
Cash
and cash
equivalents, beginning of period
|
214
|
56
|
179
|
62
|
||||||||||||
Cash
and cash equivalents, end of period
|
$ |
310
|
$ |
179
|
$ |
310
|
$ |
179
|
||||||||
Supplemental
cash flow information
|
||||||||||||||||
Net
cash
receipts from customers and other
|
$ |
2,209
|
$ |
2,425
|
$ |
8,139
|
$ |
7,946
|
||||||||
Net
cash
payments for:
|
||||||||||||||||
Employee
services, suppliers and other expenses
|
(979 | ) | (1,043 | ) | (4,323 | ) | (4,130 | ) | ||||||||
Interest
|
(67 | ) | (67 | ) | (340 | ) | (294 | ) | ||||||||
Workforce
reductions
|
(7 | ) | (8 | ) | (31 | ) | (45 | ) | ||||||||
Personal
injury and other claims
|
(28 | ) | (47 | ) | (86 | ) | (107 | ) | ||||||||
Pensions
|
(25 | ) | (66 | ) | (75 | ) | (112 | ) | ||||||||
Income
taxes
|
(161 | ) | (131 | ) | (867 | ) | (307 | ) | ||||||||
Cash
provided
from operating activities
|
$ |
942
|
$ |
1,063
|
$ |
2,417
|
$ |
2,951
|
Three
months ended
|
Year
ended
|
|||||||||||||||
December
31
|
December
31
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
(Unaudited)
|
||||||||||||||||
Statistical
operating data
|
||||||||||||||||
Rail
freight
revenues ($ millions)
|
1,763
|
1,824
|
7,186
|
7,254
|
||||||||||||
Gross
ton
miles (GTM) (millions)
|
89,315
|
88,407
|
347,898
|
352,972
|
||||||||||||
Revenue
ton
miles (RTM) (millions)
|
47,151
|
45,966
|
184,148
|
185,610
|
||||||||||||
Carloads
(thousands)
|
1,205
|
1,146
|
4,744
|
4,824
|
||||||||||||
Route
miles
(includes Canada and the U.S.)
|
20,421
|
20,264
|
20,421
|
20,264
|
||||||||||||
Employees
(end
of period)
|
22,696
|
22,250
|
22,696
|
22,250
|
||||||||||||
Employees
(average for the period)
|
22,796
|
22,196
|
22,389
|
22,092
|
||||||||||||
Productivity
|
||||||||||||||||
Operating
ratio (%)
|
62.1
|
62.2
|
63.6
|
61.8
|
||||||||||||
Rail
freight
revenue per RTM (cents)
|
3.74
|
3.97
|
3.90
|
3.91
|
||||||||||||
Rail
freight
revenue per carload ($)
|
1,463
|
1,592
|
1,515
|
1,504
|
||||||||||||
Operating
expenses per GTM (cents)
|
1.35
|
1.41
|
1.44
|
1.39
|
||||||||||||
Labor
and
fringe benefits expense per GTM (cents)
|
0.38
|
0.54
|
0.49
|
0.52
|
||||||||||||
GTMs
per
average number of employees (thousands)
|
3,918
|
3,983
|
15,539
|
15,977
|
||||||||||||
Diesel
fuel
consumed (U.S. gallons in millions)
|
102
|
101
|
392
|
401
|
||||||||||||
Average
fuel
price ($/U.S. gallon)
|
2.70
|
2.16
|
2.40
|
2.13
|
||||||||||||
GTMs
per U.S.
gallon of fuel consumed
|
876
|
875
|
887
|
880
|
||||||||||||
Financial
ratio
|
||||||||||||||||
Debt
to total
capitalization ratio (% at end of period)
|
35.6
|
36.3
|
35.6
|
36.3
|
||||||||||||
Safety
indicators
|
||||||||||||||||
Injury
frequency rate per 200,000 person hours (2)
|
2.1
|
2.0
|
1.9
|
2.1
|
||||||||||||
Accident
rate
per million train miles (2)
|
3.6
|
2.0
|
2.7
|
2.4
|
Three
months ended December 31
|
Year
ended December 31
|
||||||||||||||||||||||||
Variance
|
Variance
|
||||||||||||||||||||||||
2007
|
2006
|
Fav
(Unfav)
|
2007
|
2006
|
Fav
(Unfav)
|
||||||||||||||||||||
(Unaudited)
|
|||||||||||||||||||||||||
Revenues
(millions of dollars)
|
|||||||||||||||||||||||||
Petroleum
and
chemicals
|
306
|
300
|
2 | % |
1,226
|
1,171
|
5 | % | |||||||||||||||||
Metals
and
minerals
|
195
|
192
|
2 | % |
826
|
835
|
(1 | %) | |||||||||||||||||
Forest
products
|
336
|
414
|
(19 | %) |
1,552
|
1,747
|
(11 | %) | |||||||||||||||||
Coal
|
98
|
93
|
5 | % |
385
|
370
|
4 | % | |||||||||||||||||
Grain
and
fertilizers
|
350
|
351
|
-
|
1,311
|
1,258
|
4 | % | ||||||||||||||||||
Intermodal
|
362
|
353
|
3 | % |
1,382
|
1,394
|
(1 | %) | |||||||||||||||||
Automotive
|
116
|
121
|
(4 | %) |
504
|
479
|
5 | % | |||||||||||||||||
Other
revenues
|
178
|
176
|
1 | % |
711
|
675
|
5 | % | |||||||||||||||||
1,941
|
2,000
|
(3 | %) |
7,897
|
7,929
|
-
|
|||||||||||||||||||
Revenue
ton miles (millions)
|
|||||||||||||||||||||||||
Petroleum
and
chemicals
|
8,473
|
7,930
|
7 | % |
32,761
|
31,868
|
3 | % | |||||||||||||||||
Metals
and
minerals
|
4,305
|
4,026
|
7 | % |
16,719
|
17,467
|
(4 | %) | |||||||||||||||||
Forest
products
|
9,156
|
10,049
|
(9 | %) |
39,808
|
42,488
|
(6 | %) | |||||||||||||||||
Coal
|
3,432
|
3,209
|
7 | % |
13,776
|
13,727
|
-
|
||||||||||||||||||
Grain
and
fertilizers
|
12,550
|
11,791
|
6 | % |
45,359
|
44,096
|
3 | % | |||||||||||||||||
Intermodal
|
8,493
|
8,237
|
3 | % |
32,607
|
32,922
|
(1 | %) | |||||||||||||||||
Automotive
|
742
|
724
|
2 | % |
3,118
|
3,042
|
2 | % | |||||||||||||||||
47,151
|
45,966
|
3 | % |
184,148
|
185,610
|
(1 | %) | ||||||||||||||||||
Rail
freight revenue / RTM (cents)
|
|||||||||||||||||||||||||
Rail
freight revenue per RTM
|
3.74
|
3.97
|
(6 | %) |
3.90
|
3.91
|
-
|
||||||||||||||||||
Commodity
groups:
|
|||||||||||||||||||||||||
Petroleum
and
chemicals
|
3.61
|
3.78
|
(4 | %) |
3.74
|
3.67
|
2 | % | |||||||||||||||||
Metals
and
minerals
|
4.53
|
4.77
|
(5 | %) |
4.94
|
4.78
|
3 | % | |||||||||||||||||
Forest
products
|
3.67
|
4.12
|
(11 | %) |
3.90
|
4.11
|
(5 | %) | |||||||||||||||||
Coal
|
2.86
|
2.90
|
(1 | %) |
2.79
|
2.70
|
3 | % | |||||||||||||||||
Grain
and
fertilizers
|
2.79
|
2.98
|
(6 | %) |
2.89
|
2.85
|
1 | % | |||||||||||||||||
Intermodal
|
4.26
|
4.29
|
(1 | %) |
4.24
|
4.23
|
-
|
||||||||||||||||||
Automotive
|
15.63
|
16.71
|
(6 | %) |
16.16
|
15.75
|
3 | % | |||||||||||||||||
Carloads
(thousands)
|
|||||||||||||||||||||||||
Petroleum
and
chemicals
|
151
|
145
|
4 | % |
599
|
590
|
2 | % | |||||||||||||||||
Metals
and
minerals
|
261
|
203
|
29 | % |
1,010
|
981
|
3 | % | |||||||||||||||||
Forest
products
|
134
|
154
|
(13 | %) |
584
|
667
|
(12 | %) | |||||||||||||||||
Coal
|
86
|
94
|
(9 | %) |
361
|
411
|
(12 | %) | |||||||||||||||||
Grain
and
fertilizers
|
162
|
157
|
3 | % |
601
|
594
|
1 | % | |||||||||||||||||
Intermodal
|
346
|
332
|
4 | % |
1,324
|
1,326
|
-
|
||||||||||||||||||
Automotive
|
65
|
61
|
7 | % |
265
|
255
|
4 | % | |||||||||||||||||
1,205
|
1,146
|
5 | % |
4,744
|
4,824
|
(2 | %) | ||||||||||||||||||
Rail
freight revenue / carload (dollars)
|
|||||||||||||||||||||||||
Rail
freight revenue per carload
|
1,463
|
1,592
|
(8 | %) |
1,515
|
1,504
|
1 | % | |||||||||||||||||
Commodity
groups:
|
|||||||||||||||||||||||||
Petroleum
and
chemicals
|
2,026
|
2,069
|
(2 | %) |
2,047
|
1,985
|
3 | % | |||||||||||||||||
Metals
and
minerals
|
747
|
946
|
(21 | %) |
818
|
851
|
(4 | %) | |||||||||||||||||
Forest
products
|
2,507
|
2,688
|
(7 | %) |
2,658
|
2,619
|
1 | % | |||||||||||||||||
Coal
|
1,140
|
989
|
15 | % |
1,066
|
900
|
18 | % | |||||||||||||||||
Grain
and
fertilizers
|
2,160
|
2,236
|
(3 | %) |
2,181
|
2,118
|
3 | % | |||||||||||||||||
Intermodal
|
1,046
|
1,063
|
(2 | %) |
1,044
|
1,051
|
(1 | %) | |||||||||||||||||
Automotive
|
1,785
|
1,984
|
(10 | %) |
1,902
|
1,878
|
1 | % |
Three
months ended
|
Year
ended
|
|||||||||||||||||||||||
December
31, 2007
|
December
31, 2007
|
|||||||||||||||||||||||
In
millions, except per share data
|
Reported
|
Adjustments
|
Adjusted
|
Reported
|
Adjustments
|
Adjusted
|
||||||||||||||||||
Revenues
|
$ |
1,941
|
$ |
-
|
$ |
1,941
|
$ |
7,897
|
$ |
-
|
$ |
7,897
|
||||||||||||
Operating
expenses
|
1,205
|
-
|
1,205
|
5,021
|
-
|
5,021
|
||||||||||||||||||
Operating
income
|
736
|
-
|
736
|
2,876
|
-
|
2,876
|
||||||||||||||||||
Interest
expense
|
(85 | ) |
-
|
(85 | ) | (336 | ) |
-
|
(336 | ) | ||||||||||||||
Other
income
|
159
|
(153 | ) |
6
|
166
|
(153 | ) |
13
|
||||||||||||||||
Income
before
income taxes
|
810
|
(153 | ) |
657
|
2,706
|
(153 | ) |
2,553
|
||||||||||||||||
Income
tax
recovery (expense)
|
23
|
(236 | ) | (213 | ) | (548 | ) | (280 | ) | (828 | ) | |||||||||||||
Net
income
|
$ |
833
|
$ | (389 | ) | $ |
444
|
$ |
2,158
|
$ | (433 | ) | $ |
1,725
|
||||||||||
Basic
earnings per share
|
$ |
1.70
|
$ | (0.79 | ) | $ |
0.91
|
$ |
4.31
|
$ | (0.87 | ) | $ |
3.44
|
||||||||||
Diluted
earnings per share
|
$ |
1.68
|
$ | (0.78 | ) | $ |
0.90
|
$ |
4.25
|
$ | (0.85 | ) | $ |
3.40
|
Three
months ended
|
Year
ended
|
|||||||||||||||||||||||
December
31, 2006
|
December
31, 2006
|
|||||||||||||||||||||||
In
millions, except per share data
|
Reported
|
Adjustments |
Adjusted
|
Reported
|
Adjustments
|
Adjusted
|
||||||||||||||||||
Revenues
|
$ |
2,000
|
$ |
-
|
$ |
2,000
|
$ |
7,929
|
$ |
-
|
$ |
7,929
|
||||||||||||
Operating
expenses
|
1,244
|
-
|
1,244
|
4,899
|
-
|
4,899
|
||||||||||||||||||
Operating
income
|
756
|
-
|
756
|
3,030
|
-
|
3,030
|
||||||||||||||||||
Interest
expense
|
(80 | ) |
-
|
(80 | ) | (312 | ) |
-
|
(312 | ) | ||||||||||||||
Other
income
|
27
|
-
|
27
|
11
|
-
|
11
|
||||||||||||||||||
Income
before
income taxes
|
703
|
-
|
703
|
2,729
|
-
|
2,729
|
||||||||||||||||||
Income
tax
expense
|
(204 | ) | (27 | ) | (231 | ) | (642 | ) | (277 | ) | (919 | ) | ||||||||||||
Net
income
|
$ |
499
|
$ | (27 | ) | $ |
472
|
$ |
2,087
|
$ | (277 | ) | $ |
1,810
|
||||||||||
Basic
earnings per share
|
$ |
0.97
|
$ | (0.05 | ) | $ |
0.92
|
$ |
3.97
|
$ | (0.53 | ) | $ |
3.44
|
||||||||||
Diluted
earnings per share
|
$ |
0.95
|
$ | (0.05 | ) | $ |
0.90
|
$ |
3.91
|
$ | (0.51 | ) | $ |
3.40
|
Three
months ended
|
Year
ended
|
|||||||||||||||
December
31
|
December
31
|
|||||||||||||||
In
millions
|
2007
|
2006
|
2007
|
2006
|
||||||||||||
Cash
provided
from operating activities
|
$ |
942
|
$ |
1,063
|
$ |
2,417
|
$ |
2,951
|
||||||||
Cash
used by
investing activities
|
(24 | ) | (484 | ) | (895 | ) | (1,349 | ) | ||||||||
Cash
provided
before financing activities
|
918
|
579
|
1,522
|
1,602
|
||||||||||||
Adjustments:
|
||||||||||||||||
Change
in
accounts receivable securitization
|
(176 | ) | (293 | ) | (228 | ) |
82
|
|||||||||
Dividends
paid
|
(102 | ) | (83 | ) | (418 | ) | (340 | ) | ||||||||
Effect
of
foreign exchange fluctuations on U.S. dollar-denominated
|
||||||||||||||||
cash
and cash
equivalents
|
(5 | ) |
9
|
(48 | ) | (1 | ) | |||||||||
Free
cash
flow
|
$ |
635
|
$ |
212
|
$ |
828
|
$ |
1,343
|
Canadian National Railway Company | |||||
Date: January 23, 2008 | By: | /s/ Cristina Circelli | |||
Name: | Cristina Circelli | ||||
Title: | Deputy
Corporate Secretary and General Counsel |