CN logs record operating ratio in Q3; Mongeau set to return in early 2016

CN's third-quarter 2015 net income rose 18 percent to $1 million and diluted earnings per share jumped 21 percent to $1.26, compared with third-quarter last year, the Class I announced yesterday. (All figures are in Canadian dollars.)

The Class I posted a record operating ratio of 53.8 percent this quarter, beating last year's 3Q ratio by 5 percentage points.

Revenue increased 3 percent to $3.2 million, while carloadings and revenue ton-miles each declined by 6 percent.

Coal revenue plummeted 13 percent to $161 million, although intermodal revenue increased 5 percent to $764 million. Additionally, CN trains carried 584,000 intermodal carloads, representing a 4 percent increase compared with third-quarter 2014.

"CN delivered record third-quarter results thanks to strong team execution in safely and efficiently meeting our customers' needs while recalibrating resources to the weaker volume environment," said Luc Jobin, CN's executive vice president and chief financial officer.

To read more about CN's international intermodal strategy, follow this link to Progressive Railroading's October cover story.

Meanwhile, CN officials announced that Chief Executive Officer Claude Mongeau is expected to return to work in early 2016 after undergoing surgery to remove a rare type of soft-tissue tumor in his larynx. Mongeau has been on medical leave since mid-August.

Doctors removed his larynx and placed a voice prosthesis in his throat, CN officials said.

"Claude is upbeat, recovering well, and remains engaged in the business," said Robert Pace, chairman of CN.