CN announced the details of its strategic and financial value creation plan, “Full Speed Ahead – Redefining Railroading.”
“CN’s ambition is to build the premier railway of the 21st century by methodically investing in technologies to deliver high-quality service to customers, improve safety and sustainability, create capacity and reduce costs and delays. Just as CN pioneered the industry’s focus on efficiency to increase reliability, we are now well-positioned to lead the industry through its next transformation by investing in the success of our customers, workforce and communities while delivering enhanced financial results,” said JJ Ruest, president and CEO of CN.
CN is a franchise with 19,500 miles of railroad network connecting Canada’s Eastern and Western coasts with the U.S. South.
CN has conducted an extensive review of all revenue and cost levers and has targeted $700 million of operating income improvements to drive future growth. To achieve these improvements in 2022, CN intends to use “a balanced approach that includes a strategic review of non-rail businesses and an optimization of labour productivity.”
For 2022 CN expects to grow operating income and earnings per share (EPS) by approximately 20 per cent and improve its operating ratio to 57 per cent. Additionally, CN is reviewing its capital structure and financial leverage with a view to increasing total shareholder distributions.
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