|Bid||122.15 x N/A|
|Ask||122.38 x N/A|
|Day's Range||121.75 - 123.82|
|52 Week Range||96.46 - 127.96|
|Beta (3Y Monthly)||1.09|
|PE Ratio (TTM)||20.18|
|Forward Dividend & Yield||2.15 (1.76%)|
|1y Target Est||N/A|
Canadian National (NYSE: CNI ) and Canadian Pacific (NYSE: CP ), as well as the Canadian government, are investing millions of dollars in infrastructure improvements to support anticipated volume growth ...
"It's tough to know how things will shake," said Greg Northey, vice president of corporate affairs for Pulse Canada, a trade group representing producers and traders of dry beans, chickpeas and lentils. For now, the railways are anticipating high grain volumes this year, in line with volume highs from the previous year. In the 2019-20 crop year, which began Aug. 1 and runs through July 31 in Canada, wheat production is expected to rise to 33.3 million metric tonnes (mmt), compared with 31.8 million in 2018-19, according to the U.S. Department of Agriculture's latest monthly grain supply and demand report.
Loose truck capacity, trade uncertainty and lower coal demand are among the headwinds that some Class I railroads are seeing for the remainder of 2019. Norfolk Southern (NYSE: NSC) also noted softer volumes in the third quarter, followed by flat volumes in the fourth quarter.
Canadian National (NYSE: CNI) is planning to acquire the 220-mile Massena rail line from CSX (NYSE: CSX), both companies said on August 29. Woodard is near Syracuse and Valleyfield is southwest of Montreal. The line also serves cities and towns such as Beauharmois and Huntingdon in the Quebec province and Massena, Norwood, Potsdam and Gouverneur in New York state.
Federal agency Transport Canada and Minister of Transport Marc Garneau have made a string of rail-related infrastructure funding announcements in recent weeks. The C$2 billion National Trade Corridors' Fund "is a useful program as traffic, both international and domestic is growing," said Bob Ballentyne, president of the Freight Management Association of Canada.
Public railroad stocks can be especially attractive in a growth economy. Few industries are as closely tied to economic growth as those involved in moving goods and commodities. Railroad stocks have seen some volatility over the past few years, due in part to the falling fortune of coal, which accounts for nearly 40% of America's railroad tonnage.
Canadian National has expressed interest in recent months to fortify its presence in eastern Canada, including making plans to invest its resources at the ports of Halifax and Quebec. The new intermodal service will compete against trucks by converting shipments from over-the-road service to rail, which is typically less expensive.The service also might provide rate relief to ocean carriers moving goods between Montreal and the Port of New York and New Jersey.
Canadian Pacific (NYSE: CP) reached an all-time record in shipping grain volumes in the 2018-2019 crop year, the company said on August 1. The railway hauled 26.8 million metric tonnes of grain and grain products in the crop year that ran from August 1, 2018 to July 31, 2019. Canadian Pacific also reached an all-time monthly record in April when it moved 2.6 million metric tonnes.
A look at the shareholders of Canadian National Railway Company (TSE:CNR) can tell us which group is most powerful...
Canadian National (NYSE: CNI) reached an all-time record for hauling grain in the 2018-2019 crop year. Canadian National also reached an all-time monthly record in April of 2.72 mmt, and it hit monthly records in November and December 2018 and January 2019. The records occurred despite extreme weather conditions that stymied rail shipments in February and March, as well as restrictions on Canadian canola exports to China, the railway said.
There is some uncertainty for commodities such as grain, lumber, coal and crude, but Canadian National (NYSE: CNI) leaders are "cautiously optimistic" about volumes and how the company might perform in the second half of the year. "In regards to 2019, we are reaffirming our guidance with continued focus on costs, focus on our PSR [precision scheduled railroading] operation and focus on growth, but staying very mindful of market volatility," CNI chief executive officer J.J. Ruest said during his company's second quarter earnings call on July 23. One area of uncertainty is how much Alberta crude oil CNI can ship in the second half of 2019.
Canadian National (NYSE: CNI) reported increases in net profit and revenue in the second quarter of 2019, with its acquisition of trucking and transportation provider TransX providing both higher revenue and costs. The company said its adjusted net profit was $1.25 billion in the second quarter, compared with $1.12 billion for the same period in 2018. Second quarter revenue rose 9 percent to $3.96 billion, while operating income increased 11 percent to $1.68 billion.
Revenue in the petroleum and chemicals segment, including crude-by-rail shipments, rose about 25% in the second quarter, while revenue in the grain and fertilizers unit rose 8.4%. CN's U.S.-listed shares were up 2.4% at $93.30 after the bell. Pipeline congestion has helped crude by rail shipments recover recently, despite narrower differentials between U.S. and Canadian crude after Alberta government's mandated crude production cuts.
Canadian National Railway Co beat analysts' estimates for quarterly adjusted profit on Tuesday, as the country's largest railroad operator shipped higher volumes of crude, refined petroleum products and grains. Revenue in the petroleum and chemicals segment, including crude-by-rail shipments, rose about 25% in the second quarter, while revenue in the grain and fertilizers unit rose 8.4%. CN's U.S.-listed shares were up 2.4% at $93.30 after the bell.
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