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Additional Information
Market: NYSE
Sector: Transportation
EPIC: CNI
Latest Price: 80.79  (2.08% Ascending)
52-week High: 86.39
52-week Low: 63.96
Market Cap: 35,433.10M
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Canadian National Railway
www.cn.ca
Canadian National Railway Company (CNR) is engaged in the rail and related transportation business. The Company manages its rail operations in Canada and the United States. CNR’s network of approximately 20,600 route miles spans Canada and mid-America, from the Atlantic and Pacific oceans to the Gulf of Mexico, serving the ports of Vancouver, Prince Rupert (British Columbia), Montreal, Halifax, New Orleans and Mobile (Alabama).
Full Canadian National Railway profile here
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CN steams ahead on higher Q4 earnings, hikes dividend

24th Jan 2012, 10:24 am by Joyanta Acharjee
CN steams ahead on higher Q4 earnings, hikes dividend

Canadian National Railway (CN)(TSE:CNR) boosted its quarterly dividend by 15 percent Tuesday to reflect strong growth and a positive outlook for 2012, despite "significant headwinds" that it expects from pension expenses.

For the quarter that ended December 31, the operator of Canada's largest railroad posted net earnings of $592 million, or $1.32 per share, up 18 percent from $503 million or $1.08 per share a year earlier.

Adjusted earnings spiked 20 percent to $1.30, well ahead of the Thomson Reuters mean estimate of $1.24.

Revenue rose a record 12 percent to $2.38 billion, also beating the $2.30 billion analysts were expecting.

CN's president and chief executive officer, Claude Mongeau, said: "Solid operational and service performance helped CN deliver exceptional financial results for the fourth quarter and 2011 as a whole.

"Although the economic recovery may be affected by global uncertainty, CN believes the gradual improvement in the North American economy will continue in 2012."

CN is aiming to grow its profit by up to 10 percent in 2012, despite an additional pension expense of about $120 million this year.

Free cash flow for the full year is estimated at $875 million, in line with 2011, CN said.

The next quarterly dividend will rise to 37.5 cents per share, payable on March 30 to shareholders of record at the close of business on March 9.

The company said that its operating ratio — reflecting how much revenue is required to pay for its operating activities — was 64.7 percent, up 1.3 points from the fourth quarter of 2010.

Revenue ton-miles - a key railroad measure - rose three percent from a year earlier in the latest quarter, while rail freight revenue per revenue ton-mile climbed nine percent.

The rail freight operator recently stopped pension payments to former CEO Hunter Harrison and started legal action, claiming alleged breaches of confidentiality.

This is the latest stage in a boardroom battle between the company and activist investor and shareholder Bill Ackmann, who wants to oust current CEO Fred Green and replace him with Harrison.

Tuesday morning, CN shares were down 1.36 percent to $78.52.

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