CN Reports $416 Q2 Profit

MONTREAL - Jul 20/05 - SNS -- CN re[ported net income of CDN $416 million on revenue of $1,838 million during the three months ending June 30, compared to a net of $326 million on revenue of $1,665 million during the second quarter of the previous fiscal year.

This lifted net income for the first half of the current fiscal year to $715 million on revenue of $3,544 million, compared to a net of $536 million on revenue of $3,103 million the last fiscal year.

Forest products accounted for the lion's share of second quarter revenue, totalling $450 million and $854 million for the six months; compared to quarterly revenue of $271 for petroleum and chemicals or $546 so far this year; and $260 million for grains and fertilizers or $536 million for the first half of the fiscal year. Intermodal revenue stood at $313 for the quarter and $600 million so far this fiscal year.

E. Hunter Harrison, president and chief executive officer of CN, said: "On the revenue side, CN's core merchandise businesses -- including forest products, metals and minerals, and petroleum and chemicals -- continued to register solid gains during the quarter.

"CN's intermodal business also performed well, benefiting from strong container imports via the Port of Vancouver, as did our coal business, which saw shipments from new metallurgical-coal mines in Western Canada. Grain and fertilizers revenues were affected by decreased availability of high-quality grain in Canada, while our automotive business experienced lower production at some of the southern Ontario production facilities we serve."