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The Class I with the best operating ratio finished the first quarter with its best-ever ratio. Yesterday, Canadian National Railway Co. announced it reached an all-time-low operating ratio of 66.2, which improved 3 points compared with first-quarter 2005.

The railroad had other positive financial results to share, as well. First-quarter revenue of $1.6 billion increased 8 percent, operating income of $549 million rose 19 percent, net income of $318 million went up 21 percent and diluted earnings per share of 58 cents increased 27 percent compared with first-quarter 2005. All seven of CN’s commodity groups registered revenue gains led by intermodal and coal, which increased revenue 12 percent and 10 percent, respectively.

However, quarterly operating expenses of $1.07 billion rose 4 percent compared with first-quarter 2005 primarily because of increased fuel, purchased services and material, and depreciation and amortization costs. Escalating expenses were partially offset by a favorable $30.7 million translation of the stronger Canadian dollar on U.S. dollar-denominated operating costs.

“Our performance reflected continued productivity improvements, a 2 percent increase in revenue ton-miles and a relentless focus on cost control,” said CN President and Chief Executive Officer E. Hunter Harrison in a prepared statement.