CN adjusts financial outlook after supply chain uncertainty

CN says its operations have recovered following several months of labour uncertainty as well as a complete shutdown of its Canadian network during the nationwide rail lockout in August. As a result, CN has adjusted its 2024 guidance and long-term financial outlook.

CN now expects to deliver adjusted diluted EPS (earnings per share) growth in the low single-digit range, compared to its July 23 expectation of mid to high single-digit growth. The company continues to expect to invest approximately $3.5 billion in its capital program, net of amounts reimbursed by customers. As a result of the reduction to earnings, CN now expects adjusted return on invested capital (ROIC) to be in the 13-15 per cent range, compared to its July 23 expectation of approximately 15 per cent.

CN said in a statement that the adjustment is due to the impact of CN’s labour uncertainty and work stoppage, the impact of the wildfires in Alberta, weaker than expected demand in forest products and metals, as well as the delayed recovery of overseas intermodal due to on-going port labour uncertainty.

The company said it remains focused on the execution of its scheduled operating plan, growing volumes more than the economy, as its company-specific growth opportunities come online, pricing above rail inflation and improving efficiency.