Canadian Railroads’ 4Q Earnings Decline

Canada’s two major freight railroads reported lower fourth-quarter earnings on lower freight demand.

Canadian National Railway Co.’s profit fell 31%. Canada’s largest railroad earned C$573 million, or C$1.21 per share, compared with C$833 million, or C$1.68, a year ago. Revenue rose 13% to C$2.2 billion.

Full-year net income was C$1.9 billion, or C$3.95 per share, down from C$2.2 billion, or C$4.25, in 2007.

Canadian Pacific Railway Ltd. earned C$201 million, or C$1.29, down from C$342 million, or C$2.21, in the same quarter a year earlier.

Net income for the full year was C$619 million, or C$3.98 per share, down from C$946 million, or C$6.08, in 2007, CP said.