By , Calgary Herald; January 24, 2018
Investors appear to have largely shrugged off Canadian National Railway Co.’s weak fourth-quarter results and soft 2018 guidance, despite expectations that network congestion problems will hurt performance until the summer or later.
Higher-than-anticipated operating costs, due to ongoing congestion in key corridors, weather-related outages, and higher fuel costs, were the primary culprits behind CN’s fourth-quarter earnings miss. The company plans to significantly increase its operating and capital resources to help resolve the issues, but it acknowledged that additional new capacity likely won’t be available until the second half of 2018.
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