CN Profits Jump

MONTREAL - Jan 24/06 - SNS -- CN today reported net income of CDN $430 million on revenues of $1,866 million for the fourth quarter ending December 31, compared to a net of $376 million on revenue of $1,736 million during the same three month period the previous year.

This lifted net income for fiscal 2005 to $1,556 million on revenue of $7,240 million, versus a net of $1,258 million on revenue of $6,548 million during the previous fiscal year.

Revenue from hauling grain and fertilizer was up 4% during the final quarter of 2005, advancing from $299 to $310 million. Revenue for this sector for the year ended up at $1,119 million, up 5% from $1,063 million in fiscal 204.

CN's said its 2005 revenue performance was driven largely by increased freight rates, an important part of which was due to a higher fuel surcharge resulting from increases in crude oil prices; the inclusion of a full year of revenues from the rail and related holdings of Great Lakes Transportation LLC (GLT) and BC Rail. CN acquired and consolidated GLT and BC Rail on May 10, 2004, and July 14, 2004, respectively; and a return to normal intermodal volumes following a first-quarter 2004 strike.