Canada’s Two Largest Railroads Report Lower Income

Canada’s two biggest freight railroads reported downturns in their second-quarter profits, Bloomberg reported.

Canadian National Railway, the country’s largest railroad, said its net income fell 11% to C$459 million, or 95 cents a share, from C$516 million, or C$1.01, a year ago.

Revenue rose 4% to C$2.1 billion, the company said late Monday.

CN pegged the decline to rising fuel costs, a weaker U.S. dollar and slumping demand for automotive and forest products, Bloomberg reported.

The rail line’s automotive revenue fell 13% to C$124 million.

Meanwhile, Canadian Pacific Railway, Canada’s No. 2 railroad, said its profit plunged 40% to C$154.9 million, or C$1 a share, from C$256.7 million, or C$1.64 a share, a year ago.

Sales rose less than 1% to C$1.22 billion, the railroad said Tuesday.

CP has been hurt by the U.S. economic slowdown, where it gets a fifth of its revenue, and its fuel costs increased 34%, Bloomberg reported.

CP forecast full-year earnings of C$4 to C$4.20 a share, down from its earlier estimate of C$4.40 to C$4.60, Bloomberg said.