Ms. Tracy Robinson reports

CN ANNOUNCES FIRST QUARTER RESULTS

Canadian National Railway Company has released its financial and operating results for the first quarter ended March 31, 2024.

"Our team of railroaders delivered to plan in the first quarter, and our scheduled operating model continued to enhance our service to customers. Looking forward, we are confident for 2024. We are seeing the expected improvements in the economy, and our CN-specific growth opportunities are materializing. We remain committed to delivering on our growth agenda and powering the economy," said Tracy Robinson, president and chief executive officer, CN Rail.

Quarterly highlights:

• Revenue ton miles (RTMs) remained flat at 59,749 (millions);
• Revenues of $4,249-million, a decrease of $64-million, or 1 per cent;
• Operating income of $1,546-million, a decrease of $116-million, or 7 per cent;
• Operating ratio, defined as operating expenses as a percentage of revenues, of 63.6 per cent, an increase of 2.1 points;
• Diluted earnings per share of $1.72, a decrease of 5 per cent.

Reaffirming 2024 and long-term financial outlook

CN Rail reaffirms its 2024 outlook and expects to deliver adjusted diluted EPS growth of approximately 10 per cent and expects to invest approximately $3.5-billion in its capital program, net of amounts reimbursed by customers. The company also expects return on invested capital to be within the targeted range of 15 per cent to 17 per cent.

CN Rail reiterates its longer-term financial perspective and continues to target compounded annual diluted EPS growth in the range of 10 per cent to 15 per cent over the 2024 to 2026 period driven by increasing volumes more than the economy, pricing above rail inflation and incrementally improving efficiency, all of which assume a supportive economy.

Conference call details

CN Rail's senior officers will review the results and the railway's outlook in a conference call starting at 4:30 p.m. Eastern Time on April 23. Ms. Robinson will lead the call. Parties wishing to participate by telephone may dial 1-800-715-9871 (Canada/United States) or 1-647-932-3411 (international), using 7188340 as the passcode. Participants are advised to dial in 10 minutes prior to the call.

2024 key assumptions

CN Rail has made a number of economic and market assumptions in preparing its 2024 outlook. The company continues to assume slightly positive North American industrial production in 2024. For the 2023/2024 crop year, the grain crop in Canada was below its three-year average (also below when excluding the significantly lower 2021/2022 crop year), and the U.S. grain crop was above its three-year average. The company continues to assume that the 2024/2025 grain crop in Canada will be in line with its three-year average (excluding the significantly lower 2021/2022 crop year), and the U.S. grain crop will also be in line with its three-year average. CN Rail continues to assume RTM growth in the mid-single-digit range. CN Rail assumes continued pricing above rail inflation upon contract renewals. CN Rail also continues to assume that in 2024, the value of the Canadian dollar in U.S. currency will be approximately 75 cents, and now assumes that in 2024, the average price of crude oil (West Texas Intermediate) will be approximately in the $80 (U.S.) to $90 (U.S.) range per barrel (compared with its Jan. 23, 2024, assumption of approximately $70 (U.S.) to $80 (U.S.) per barrel).

2024 to 2026 key assumptions

CN Rail has made a number of economic and market assumptions in preparing its three-year financial perspective. CN Rail assumes that the North American industrial production will increase by at least 2-per-cent compound annual growth rate over the next three years. CN Rail assumes continued pricing above rail inflation. CN Rail assumes that the value of the Canadian dollar in U.S. currency will be approximately 75 cents and that the average price of crude oil (West Texas Intermediate) will be approximately $80 (U.S.) per barrel during this period.

About Canadian National Railway Company

CN Rail is a world-class transportation leader and trade enabler. Essential to the economy, to the customers and to the communities it serves, CN Rail safely transports more than 300 million tons of natural resources, manufactured products and finished goods throughout North America every year. CN Rail's network connects Canada's eastern and western coasts with the U.S. south through an 18,800-mile rail network. CN Rail and its affiliates have been contributing to community prosperity and sustainable trade since 1919. CN Rail is committed to programs supporting social responsibility and environmental stewardship.

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