Canadian National [announced today] that its diluted earnings per share (EPS) grew 17 per cent, and 14 per cent on an adjusted basis in the fourth quarter, while free cash flow for the full-year 2020 reached a record of over C$3.2 billion. (1)
CN president and chief executive officer JJ Ruest said “2020 was a year like no other and thanks to our colleagues, who are essential workers, we got through it together and kept the economy moving while setting impressive new volume records in key markets. Our operations remained very nimble in the fourth quarter as we right-sized to meet the increased demand while we maintained industry leading fuel efficiency. We continue to actively implement our long-term strategy, focusing on sustainable growth and deploying advanced technology to generate value for all of our stakeholders.”
Financial results highlights
Fourth-quarter 2020 compared to fourth-quarter 2019
- Revenues of C$3,656 million, an increase of C$72 million or two per cent.
- Diluted EPS of C$1.43, an increase of 17 per cent, or 14 per cent on an adjusted basis. (1)
- Operating ratio of 61.4 per cent, a decrease of 4.6 points, or 3.8 points on an adjusted basis. (1)
- Operating income of C$1,411 million, an increase of 16 per cent, or 13 per cent on an adjusted basis. (1)
Full-year 2020 compared to full-year 2019
- Revenues of C$13,819 million, a decrease of C$1,098 million or seven per cent.
- Diluted EPS of C$5.00, a decrease of 14 per cent, and adjusted diluted EPS of C$5.31, a decrease of eight per cent. (1)
- Operating ratio of 65.4 per cent, an increase of 2.9 points, and adjusted operating ratio of 61.9 per cent, an increase of 0.2 points. (1)
- Operating income of C$4,777 million, a decrease of 15 per cent, and adjusted operating income of C$5,263 million, a decrease of eight per cent. (1)
- Free cash flow was C$3,227 million, an increase of C$1,235 million. (1)
- Adjusted return on invested capital (adjusted ROIC) of 13.4 per cent, a decrease of 1.7 points. (1)
(1) Non-GAAP Measures
CN reports its financial results in accordance with United States generally accepted accounting principles (GAAP). CN also uses non-GAAP measures in this news release that do not have any standardized meaning prescribed by GAAP, such as adjusted performance measures. These non-GAAP measures may not be comparable to similar measures presented by other companies. For further details of these non-GAAP measures, including a reconciliation to the most directly comparable GAAP financial measures, refer to the attached supplementary schedule, Non-GAAP Measures.
For complete details about CN’s Q4 2020 and full-year 2020 results, please visit the CN website.
Links to other Class 1 Q4 2020 earnings results