The Wall Street Journal-20080123-Canadian National Railway- Tax Recovery Helps Boost Quarterly Earnings
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Canadian National Railway: Tax Recovery Helps Boost Quarterly Earnings
Canadian National Railway Co. reported higher fourth-quarter earnings on a tax recovery, as well as gains on sales, and raised its quarterly dividend by 10% to 23 Canadian cents a share. The Montreal- based railway earned C$833 million (US$806 million), or C$1.68 a share, in the latest quarter, up from C$499 million, or 95 Canadian cents, a year earlier. Revenue slipped to C$1.94 billion from C$2 billion due to weak housing markets in the U.S., the continuing strength of the Canadian dollar that affected U.S. dollar-denominated revenue, a strike in the first quarter and weather-related issues. For 2008, the company expects mid-to-high single-digit earnings-per-share growth, and free cash flow of C$750 million.
