Canadian National released it second-quarter results on July 25, 2016. Highlights include: 

– Net income was C$858 million, compared with net income of C$886 million for second-quarter 2015. Q2-2016 diluted EPS remained flat at C$1.10. The decrease in net income was mainly due to lower operating income and other income, and higher interest expense; net of related income taxes.
– Adjusted diluted EPS (1) of C$1.11 declined three per cent from year-earlier adjusted diluted EPS of C$1.15. The adjusted figures exclude the impact of deferred income tax adjustments resulting from higher provincial corporate income tax rates in both years.
– Operating income declined five per cent to C$1,293 million.
Revenues decreased by nine per cent to C$2,842 million. Carloadings declined 12 per cent and revenue ton-miles declined 11 per cent.
– Operating expenses declined 12 per cent to C$1,549 million,” ” according to CN’s news release.

Luc Jobin, CN’s new president and chief executive officer, presented the report.

“Jobin, 57, joined CN as Executive Vice-President and Chief Financial Officer in 2009 following a successful career as a senior executive at Imasco, Imperial Tobacco, British American Tobacco and Power Corporation,” the company said in a June news release.

On July 14, 2016 The Motley Fool internet site reported: “Foremost, cost-cutting initiatives, while helpful, are non-recurring. What that means is that while Canadian National has seen margins expand based on lower expenses, these cost cuts will eventually reach diminishing marginal returns. 

“Once that happens (some argue that it’s already happened), only volumes and pricing will drive shares. On that front, company management sees plenty of headwinds,” The Motley Fool reported.