Canadian National Railway Company · TSX:CNR
Canadian National Railway — Q3 2023 Earnings Presentation
15 slides from Canadian National Railway's earnings presentation, Oct 24, 2023
Slide 1: Third Quarter 2023 Financial and Operating Results
Third Quarter 2023 Financial and Operating Results October 24, 2023 TSX: CNR NYSE: CNI
Slide 2: Forward-looking statements
Forward-looking statements Certain 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 a
Slide 3: On the call today
On the call today Tracy Robinson President and CEO Ed Harris Chief Operating Officer Doug MacDonald Chief Marketing Officer Ghislain Houle Chief Financial Officer 3
Slide 4: Tracy Robinson
Tracy Robinson President and Chief Executive Officer
Slide 5: Fluid network is well-positioned for volume lift
Fluid network is well-positioned for volume lift Evolution of operating structure creates winning conditions to safely and sustainably grow at low incremental cost Third quarter results impacted by continued weakness in consumer demand, external disruptions and unfavorable fuel surcharge lag C
Slide 6: Ed Harris
Ed Harris Chief Operating Officer
Slide 7: Resilient operations in a challenging external environment
Resilient operations in a challenging external environment Maintained operational fluidity in the face of West Coast port strike, fires, and floods Multiple network disruptions stress-tested the Plan – significant improvement in network recoverability Committed to building and reinforcing safe
Slide 8: Doug MacDonald
Doug MacDonald Chief Marketing Officer
Slide 9: Strengthening in key markets during the quarter
Strengthening in key markets during the quarter Solid customer service enabled supportive environment for rail inflation-plus pricing Bulk segments continued to outperform, merchandise franchise showing positive momentum, while underlying demand for consumer products remained sluggish CN-speci
Slide 10: Forecasting sequential improvements across most business lines
Forecasting sequential improvements across most business lines Merchandise Bulk Consumer Products ↔ Forest Products ↑ Western Canadian Coal ↔ International Intermodal ↑ Metals and Minerals ↔ U.S. Coal ↑ Domestic Intermodal ↑ Petroleum Products ↑ Grain ↑ Automotive ↑ Chemicals and Plastics ↑ Fertiliz
Slide 11: Ghislain Houle
Ghislain Houle Chief Financial Officer
Slide 12: Transitory headwinds weighed on financial results
Transitory headwinds weighed on financial results Q3 EPS impacted by lower consumer-related volumes; external disruptions (-10¢); and unfavorable fuel lag (-10¢ in the quarter, or -20¢ on a year-over-year basis) Investing in rolling stock, and investing in track infrastructure steadily with a vi
Slide 13: Re-affirming our 2023 financial outlook
Re-affirming our 2023 financial outlook (1) Expecting to deliver flat to slightly negative adjusted diluted EPS (1)(2) growth over 2022 Continuing to reward long-term shareholders with 8% growth in dividend for 2023 and executing on our 2023-2024 share repurchase program, with an increased budge
Slide 14: Tracy Robinson
Tracy Robinson President and Chief Executive Officer
Slide 15: Primed for the rebound
Primed for the rebound The core engine is performing The Team is in place Right conditions for margin expansion as volumes lift 15
Canadian National Railway Company — Q3 2023 Earnings Presentation on 6ix