Canadian National Railway Cuts Outlook Again Due to Labor Dispute

By Sabela Ojea

Canadian National Railway lowered its outlook for the year due to the impact of the recent labour strike, as well as other challenges such as wildfires in Alberta and weaker-than-expected demand for forest products and metals.

The Canadian transportation company said Tuesday it now expects earnings per share to grow in the low single digits, down from its previous forecast of mid- to high-single digits. It also expected an adjusted return on invested capital of 13% to 15%, down from its previous forecast of 15%.

In July, the company lowered its full-year forecast, citing a dispute with employees.

The company said its operations have been restored after several months of uncertainty and the complete closure of its Canadian network.

Canadian National Railway also withdrew its 2024-2026 guidance and said it now expects compound annual adjusted earnings per share growth in the high single-digit range.

The updated feedback comes as car speeds, train speeds and dwell times have also returned to normal following the work stoppage and the company is now keeping up with demand.

Write to Sabela Ojea at [email protected]; @sabelaojeaguix

(END) Dow Jones Newswires

September 10, 2024, 7:01 PM ET (11:01 PM GMT)