Canadian National's (NYSE: CNI) top line is bolstered by its strong segmental performance. The company's efforts to expand and upgrade its fleet are praiseworthy. However, rising operating expenses and weak liquidity are hurting the company's bottom line.
Factors Favoring CNI
Canadian National's top line is benefiting from robust segmental performance. The increase in volumes across its segments, such as intermodal, grain, fertilizer, petroleum and chemicals, highlights CNI's effective network management and ability to attract and retain significant business. In the second quarter of 2024, overall RTMs (revenue ton miles) grew by 13% year over year. This increase in RTMs was primarily driven by a 19% rise in the international intermodal segment and a 12% rise in Petroleum and Chemical.
CNI's proactive efforts to expand its fleet are commendable. The 2024-2025 Grain Plan reflects the company's commitment to enhancing its operational capabilities and delivering on its promise to efficiently transport the Canadian grain crop. One of the key highlights of the Grain Plan is the delivery of 750 new high-efficiency grain hopper cars, a continued focus on scheduled railroading, ...
