MONTREAL, April 23, 2024 (GLOBE NEWSWIRE) -- CN (TSX:CNR) (NYSE:CNI) today reported its financial and operating results for the first quarter ended March 31, 2024. "Our team of railroaders delivered to plan in the first quarter and our scheduled operating model continued to enhance our service to customers. Looking forward, we are confident for 2024. We are seeing the expected improvements in the economy, and our CN-specific growth opportunities are materializing. We remain committed to delivering on our growth agenda and powering the economy." — Tracy Robinson, President and Chief Executive Officer, CN Quarterly highlights Revenue ton miles (RTMs) remained flat at 59,749 (millions). Revenues of C$4,249 million, a decrease of C$64 million, or 1%. Operating income of C$1,546 million, a decrease of C$116 million, or 7%. Operating ratio, defined as operating expenses as a percentage of revenues, of 63.6% an increase of 2.1-points. Diluted earnings per share (EPS) of C$1.72, a decrease of 5%. Reaffirming 2024 and long-term financial outlook (1)CN reaffirms its 2024 outlook and expects to deliver adjusted diluted EPS growth of approximately 10% and expects to invest approximately C$3.5 billion in its capital program, net of amounts reimbursed by customers. The Company also expects return on invested capital (ROIC) to be within the targeted range of 15%-17%. CN reiterates its longer-term financial perspective and continues to target compounded annual diluted EPS growth in the range of 10%-15% over the 2024-2026 period driven by growing volumes more than the economy, pricing above rail inflation and incrementally improving efficiency, all of which assumes a supportive economy. (2) CONFERENCE CALL DETAILSCN's senior officers will review the results and the railway's outlook in a conference call starting at 4:30 p.m. Eastern Time on April 23. Tracy Robinson, CN President and Chief Executive Officer, will lead the call. Parties wishing to participate via telephone may dial 1-800-715-9871 (Canada/U.S.), or 1-647-932-3411 (International), using 7188340 as the passcode. Participants are advised to dial in 10 minutes prior to the call. (1) Non-GAAP MeasuresCN's full-year adjusted diluted EPS outlook (2) excludes certain adjustments, which are expected to be comparable to adjustments made in prior years. However, management cannot individually quantify on a forward-looking basis the impact of these adjustments on its adjusted diluted EPS because these items, which could be significant, are difficult to predict and may be highly variable. As a result, CN does not provide a corresponding GAAP measure for, or reconciliation to, its adjusted diluted EPS outlook. (2) Forward-Looking StatementsCertain statements included in this news release constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and under Canadian securities laws, including statements based on management's assessment and assumptions and publicly available information with respect to CN. By their nature, forward-looking statements involve risks, uncertainties and assumptions. CN cautions that its assumptions may not materialize and that current economic conditions render such assumptions, although reasonable at the time they were made, subject to greater uncertainty. Forward-looking statements may be identified by the use of terminology such as "believes," "expects," "anticipates," "assumes," "outlook," "plans," "targets", or other similar words. 2024 key assumptionsCN has made a number of economic and market assumptions in preparing its 2024 outlook. The Company continues to assume slightly positive North American industrial production in 2024. For the 2023/2024 crop year, the grain crop in Canada was below its three-year average (also below when excluding the significantly lower 2021/2022 crop year) and the U.S. grain crop was above its three-year average. The Company continues to assume that the 2024/2025 grain crop in Canada will be in line with its three-year average (excluding the significantly lower 2021/2022 crop year) and the U.S. grain crop will also be in line with its three-year average. CN continues to assume RTM growth in the mid-single digit range. CN assumes continued pricing above rail inflation upon contract renewals. CN also continues to assume that in 2024, the value of the Canadian dollar in U.S. currency will be approximately $0.75, and now assumes that in 2024 the average price of crude oil (West Texas Intermediate) will be approximately in the US$80 - US$90 range per barrel (compared to its January 23, 2024 assumption of approximately US$70 - US$80 per barrel). 2024-2026 key assumptionsCN has made a number of economic and market assumptions in preparing its three-year financial perspective. CN assumes that the North American industrial production will increase by at least two percent CAGR over the next three years. CN assumes continued pricing above rail inflation. CN assumes that the value of the Canadian dollar in U.S. currency will be approximately $0.75 and that the average price of crude oil (West Texas Intermediate) will be approximately US$80 per barrel during this period. Forward-looking statements are not guarantees of future performance and involve risks, uncertainties and other factors which may cause actual results, performance or achievements of CN to be materially different from the outlook or any future results, performance or achievements implied by such statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements. Important risk factors that could affect the forward-looking statements in this news release include, but are not limited to, general economic and business conditions, including factors impacting global supply chains such as pandemics and geopolitical conflicts and tensions; industry competition; inflation, currency and interest rate fluctuations; changes in fuel prices; legislative and/or regulatory developments; compliance with environmental laws and regulations; actions by regulators; increases in maintenance and operating costs; security threats; reliance on technology and related cybersecurity risk; trade restrictions or other changes to international trade arrangements; transportation of hazardous materials; various events which could disrupt operations, including illegal blockades of rail networks, and natural events such as severe weather, droughts, fires, floods and earthquakes; climate change; labor negotiations and disruptions; environmental claims; uncertainties of investigations, proceedings and other types of claims and litigation; risks and liabilities arising from derailments; timing and completion of capital programs; the availability of and cost competitiveness of renewable fuels and the development of new locomotive propulsion technology; reputational risks; supplier concentration; pension funding requirements and volatility; and other risks detailed from time to time in reports filed by CN with securities regulators in Canada and the United States. Reference should also be made to Management's Discussion and Analysis (MD&A) in CN's annual and interim reports, Annual Information Form and Form 40-F, filed with Canadian and U.S. securities regulators and available on CN's website, for a description of major risk factors relating to CN. Forward-looking statements reflect information as of the date on which they are made. CN assumes no obligation to update or revise forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs, unless required by applicable securities laws. In the event CN does update any forward-looking statement, no inference should be made that CN will make additional updates with respect to that statement, related matters, or any other forward-looking statement. Information contained on, or accessible through, our website is not incorporated by reference into this news release. This earnings news release, as well as additional information, including the Financial Statements, Notes thereto and MD&A, is contained in CN's Quarterly Review available on the Company's website at www.cn.ca/financial-results and on SEDAR+ at www.sedarplus.ca as well as on the U.S. Securities and Exchange Commission's website at www.sec.gov through EDGAR. About CNCN is a world-class transportation leader and trade-enabler. Essential to the economy, to the customers, and to the communities it serves, CN safely transports more than 300 million tons of natural resources, manufactured products, and finished goods throughout North America every year. CN's network connects Canada's Eastern and Western coasts with the U.S. South through an 18,800 mile rail network. CN and its affiliates have been contributing to community prosperity and sustainable trade since 1919. CN is committed to programs supporting social responsibility and environmental stewardship. Contacts:   Media Investment Community Jonathan Abecassis Stacy Alderson Director Assistant Vice-President Public Affairs and Media Relations Investor Relations (438) 455-3692 (514) 399-0052       SELECTED RAILROAD STATISTICS – UNAUDITED   Three months ended March 31   2024 2023 Financial measures     Key financial performance indicators (1)     Total revenues ($ millions) 4,249 4,313 Freight revenues ($ millions) 4,137 4,219 Operating income ($ millions) 1,546 1,662 Net income ($ millions) 1,103 1,220 Diluted earnings per share ($) 1.72 1.82 Free cash flow ($ millions) (2) 529 593 Gross property additions ($ millions) 576 461 Share repurchases ($ millions) 955 1,199 Dividends per share ($) 0.8450 0.7900 Financial ratio     Operating ratio (%) (3) 63.6 61.5 Operational measures (4)     Statistical operating data     Gross ton miles (GTMs) (millions) 115,627 115,442 Revenue ton miles (RTMs) (millions) 59,749 59,961 Carloads (thousands) 1,343 1,353 Route miles (includes Canada and the U.S.) 18,800 18,600 Employees (end of period) 25,179 24,718 Employees (average for the period) 25,191 24,403 Key operating measures     Freight revenue per RTM (cents) 6.92 7.04 Freight revenue per carload ($) 3,080 3,118 GTMs per average number of employees (thousands) 4,590 4,731 Operating expenses per GTM (cents) 2.34 2.30 Labor and fringe benefits expense per GTM (cents) 0.77 0.70 Diesel fuel consumed (US gallons in millions) 103.6 104.1 Average fuel price ($ per US gallon) 4.50 4.79 Fuel efficiency (US gallons of locomotive fuel consumed per 1,000 GTMs) 0.896 0.902 Train weight (tons) 9,087 9,135 Train length (feet) 7,787 7,756 Car velocity (car miles per day) 205 211 Through dwell (entire railroad, hours) 7.1 7.1 Through network train speed (miles per hour) 18.7 20.1 Locomotive utilization (trailing GTMs per total horsepower) 188 194 Safety indicators (5)     Injury frequency rate (per 200,000 person hours) 1.20 0.98 Accident rate (per million train miles) 1.68 1.53 (1) Amounts expressed in Canadian dollars and prepared in accordance with United States generally accepted accounting principles (GAAP), unless otherwise noted. (2) This non-GAAP measure does not have any standardized meaning prescribed by GAAP and therefore, may not be comparable to similar measures presented by other companies. See the supplementary schedule entitled Non-GAAP Measures – Free cash flow for an explanation of this non-GAAP measure. (3) Operating ratio is defined as operating expenses as a percentage of revenues. (4) Statistical operating data, key operating measures and safety indicators are unaudited and based on estimated data available at such time and are subject to change as more complete information becomes available. Definitions of gross ton miles, revenue ton miles, freight revenue per RTM, fuel efficiency, train weight, train length, car velocity, through dwell and through network train speed are included within the Company's Management's Discussion and Analysis. Definitions of all other indicators are provided on CN's website, www.cn.ca/glossary. (5) Based on Federal Railroad Administration (FRA) reporting criteria. SUPPLEMENTARY INFORMATION – UNAUDITED   Three months ended March 31   2024 2023 % Change Fav (Unfav)   % Change at constant currency (1) Fav (Unfav)   Revenues ($ millions) (2)         Petroleum and chemicals 857 828 4 % 4 % Metals and minerals 530 529 — % 1 % Forest products 494 511 (3 %) (3 %) Coal 221 263 (16 %) (16 %) Grain and fertilizers 860 861 — % — % Intermodal 959 1,012 (5 %) (5 %) Automotive 216 215 — % 1 % Total freight revenues 4,137 4,219 (2 %) (2 %) Other revenues 112 94 19 % 19 % Total revenues 4,249 4,313 (1 %) (1 %) Revenue ton miles (RTMs) (millions) (3)         Petroleum and chemicals 11,714 11,019 6 % 6 % Metals and minerals 7,350 7,088 4 % 4 % Forest products 5,769 6,056 (5 %) (5 %) Coal 4,638 5,848 (21 %) (21 %) Grain and fertilizers 17,032 17,018 — % — % Intermodal 12,531 12,259