Canadian National Railway Cuts Outlook Again on Hit From Labor Dispute

By Sabela Ojea

Canadian National Railway cut its outlook for the year due to the effects of a recent labor strike amid other challenges including the Alberta wildfires, and weaker-than-expected demand in forest products and metals.

The Canadian transportation company said on Tuesday it now expects earnings per share growth in the low single-digit range, down from a prior outlook for mid- to high-single-digit growth. It also guided for an adjusted return on invested capital of 13% to 15% from views 15% previously.

In July, the company cut its full-year outlook citing the dispute with its workforce.

Operations have recovered following several months of uncertainty and a complete shutdown of its Canadian network, the company said.

Canadian National Railway also withdrew its guidance for the 2024 to 2026 period and said it now targets compounded annual adjusted earnings per-share growth in the high single digit range.

The updated views come as it notes that car velocity, train speed and dwell have also all recovered following the labor stoppage, and that the company is now essentially current with demand.

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

(END) Dow Jones Newswires

September 10, 2024 19:01 ET (23:01 GMT)

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