Canadian National Railway Stock Price, News & Analysis

CN reported robust first-quarter results for 2021, achieving a 5% year-over-year traffic volume increase and targeting double-digit adjusted diluted EPS growth. Operating income reached C$1,327 million (up 9%) while diluted EPS was C$1.37 (down 4%). The company's operational metrics improved significantly, with operating ratio at 62.5%. CN also proposed a merger with Kansas City Southern, valued at US$33.7 billion, enhancing service and competition across North America. The outlook expects C$3.0 billion to C$3.3 billion in free cash flow for 2021.

MONTREAL, April 26, 2021 - CN (TSX: CNR, NYSE: CNI) will announce its first-quarter 2021 financial results after market close today. A conference call to discuss these results, led by CEO JJ Ruest, will begin at 4:30 p.m. ET. To participate by phone, dial 1-866-324-3683 (Canada/U.S.) or 1-509-844-0959 (International) using passcode 9369407, 10 minutes before the call. The presentation will be webcast live and slides will be available on the CN Investors website, with a replay accessible afterward.

CN (TSX: CNR, NYSE: CNI) reported overwhelming support for its proposed merger with Kansas City Southern (NYSE: KSU). Within just four business days of the announcement, over 400 letters from customers, suppliers, and officials were submitted to the Surface Transportation Board (STB). This pro-competitive combination aims to enhance North American trade by creating a seamless single-line service.

CN anticipates further support as discussions continue, emphasizing the merger's potential to boost economic prosperity.

CN (NYSE: CNI) is advancing its proposal to acquire Kansas City Southern (NYSE: KSU), as KCS's board finds CN's offer potentially leads to a "Company Superior Proposal." CN's acquisition aims to create a leading 21st-century railway, offering KCS shareholders immediate value and future participation in the combined company's growth. CN emphasizes its extensive experience in the U.S. market, and plans to utilize a voting trust for prompt compensation to KCS shareholders. The companies are engaging in confirmatory due diligence to finalize the merger.

CN has submitted a letter to the Surface Transportation Board, advocating for its $33.7 billion acquisition proposal for Kansas City Southern (KCS), valued at $325 per share. In its communication, CN emphasizes the procompetitive nature of its offer in response to claims made by Canadian Pacific that the CN-KCS merger would be anticompetitive. CN argues that the merger would enhance service options for customers, foster competition, and create a more integrated North American railway system. KCS is still evaluating its options under the merger agreement with CP.

Canadian National Railway (CNI) made a cash-and-stock offer valued at $33.7 billion to acquire Kansas City Southern (KCS), proposing $325 per share. This offer exceeds the competing proposal from Canadian Pacific Railway (CP) by over $50 per share. CN reiterated its confidence in gaining regulatory approval, claiming its voting trust structure parallels that of CP’s. The letter emphasizes CN's commitment to enhancing competition and delivering value to KCS shareholders, while disputing CP's misleading statements regarding the proposal.

CN announced a regulatory filing to combine with Kansas City Southern (KCS) under a superior cash-and-stock proposal valued at $33.7 billion, or $325 per share. The filing seeks to assure the Surface Transportation Board (STB) that the merger would enhance competition and maintain seamless service. CN will also seek the STB's approval for a voting trust, allowing KCS shareholders to receive their payment promptly. The merger would create a more efficient rail network across North America, with reduced greenhouse gas emissions and enhanced service options.

CN has proposed a cash-and-stock transaction to combine with Kansas City Southern (KCS) valued at $33.7 billion, offering $325 per share. This proposal represents a 45% premium over KCS' recent closing price and includes anticipated annual EBITDA synergies approaching $1 billion. The merger aims to create a premier railway network across North America, enhancing trade efficiency while significantly reducing greenhouse gas emissions. CN expects the transaction to be accretive to its Adjusted Diluted EPS in the first year post-acquisition, promising substantial growth and operational benefits.

CN Reports Record Grain Shipment Performance

On April 5, 2021, CN (CNI) announced it moved 2.95 million metric tonnes (MMT) of western Canadian grain in March 2021, surpassing last year's record of 2.74 MMT and 19% above the three-year average. In Q1 2021, CN transported 8.2 MMT of grain, breaking the previous record of 7.0 MMT from 2017, a 25% increase over the three-year average. Total grain moved this crop year reached 22.7 MMT, up 19% from the prior year. CN attributes this success to over $10B in investments since 2018 and ongoing collaboration with supply chain partners.