Canadian National Railway Stock Price, News & Analysis

CN has scheduled a Special Meeting of Shareholders for March 22, 2022, in reaction to a requisition by TCI. The meeting date was mutually agreed upon, reflecting a commitment to governance and shareholder engagement. CN’s long-term growth strategy remains a priority, having received strong support from stakeholders. Despite TCI’s recent acquisition of a 5% stake and its criticism of CN’s pursuit of Kansas City Southern, the company emphasizes that it has delivered significant benefits to shareholders. CN defends its governance and past resolutions, underscoring its commitment to operational excellence.

CN (TSX: CNR, NYSE: CNI) has responded to misleading claims by TCI, highlighting conflicts of interest as TCI is also the largest shareholder of competitor Canadian Pacific (CP). CN asserts its leadership is equipped to deliver both immediate and long-term value, stating gains of $700 million from its Kansas City Southern (KCS) bid. The company emphasizes its strategic plan targeting a 57% operational ratio for 2022 and $5 billion in share repurchases. With a strong commitment to operational excellence, CN maintains that TCI's motives are suspect and lacks a credible plan for sustainable shareholder value.

CN has published its 2021-2022 Winter Plan, titled All in Together, emphasizing safety, collaboration, and technology in operations. The plan arises from extensive consultations with customers and stakeholders, ensuring readiness to tackle harsh winter conditions. JJ Ruest, President and CEO, declared the goal to be the safest and most innovative railway in North America. Underlining the importance of investments in infrastructure and technology, CN aims to safely transport over 300 million tons annually, contributing significantly to the North American economy.

TCI Fund Management has raised serious concerns regarding Canadian National Railway Company's failure to disclose Julie Godin's resignation from its Board, which occurred on September 16, 2021. TCI claims CN did not promptly issue a press release, violating securities laws and corporate governance standards. The resignation coincided with TCI's requisition for a special meeting to replace four directors and CN's strategic plan announcement. TCI intends to report CN to Canadian regulators, citing a pattern of governance failures and lack of transparency.

CN Launches Rail Safety Awareness Campaign

On September 20, 2021, CN initiated its annual rail safety awareness campaign during Rail Safety Week, running until September 26, 2021. The campaign aims to educate communities about the dangers of trespassing on tracks and ignoring safety signals. CN reported 1,901 incidents last year in the U.S., leading to 198 fatalities. Over 130 municipalities have joined the campaign. CN emphasizes shared responsibility in rail safety, encouraging individuals to remain vigilant as daily commutes resume amidst the ongoing pandemic recovery.

CN is promoting Rail Safety Week from September 20 to 26, emphasizing the importance of safety at rail crossings and the need to prevent trespassing. The CN Police Service will be available for media interviews to discuss these topics. A public awareness campaign will accompany safety initiatives at commuter stations and railway crossings, aiming to reduce accidents related to collisions and trespassing. This initiative reflects CN's commitment to enhancing rail safety and protecting the community.

CN (CNI) has unveiled an ambitious value creation plan aiming for C$700 million in additional operating income and a 57% operating ratio for 2022. The company will reduce capital spending to 17% of revenue while maintaining a focus on safety and customer service. Share repurchases of C$1.1 billion will resume, with a target of C$5 billion in total shareholder distributions for 2022. Its outlook includes a projected 20% EPS growth and commitment to environmental, social, and governance (ESG) principles.

CN has announced a strategic plan, 'Full Speed Ahead – Redefining Railroading,' targeting an additional C$700 million in operating income by optimizing operations and maintaining a 57% operating ratio for 2022. The company plans a 17% capital expenditure relative to revenue, reflecting strong network conditions. CN will resume its share repurchase program with C$1.1 billion remaining. Expected EPS growth is around 20%, and capital investments projected at C$3 billion, with free cash flow anticipated between C$3.0 to C$3.3 billion for 2021.

Kansas City Southern (NYSE: KSU) announced its Board's determination that the acquisition proposal from Canadian Pacific Railway (TSX: CP, NYSE: CP) as of September 12, 2021, is a "Company Superior Proposal". Consequently, KCS terminated its existing merger agreement with Canadian National Railway (TSX: CNI, NYSE: CNI). The new CP merger terms include $90 in cash and 2.884 CP shares for each KCS common stockholder, and $37.50 in cash for preferred stockholders. KCS will pay a $700 million breakup fee to CN, which will be reimbursed by CP upon closing, subject to shareholder and regulatory approvals.