Canadian National Railway said Wednesday that it benefited from the nine-day strike at its major competitor Canadian Pacific during May.
CN reported a profit in the second quarter of $631 million Canadian dollars ($625 million) compared to C$538 million in the same 2011 period. Revenue was C$2.5 billion in the quarter compared to C$2.3 billion in the same 2011 period.
"Other than grain and fertilizers, CN registered solid traffic increases in every commodity group during the second quarter,” said Claude Mongeau, president and chief executive officer. “Intermodal, automotive, coal, petroleum and chemicals, and metals and minerals business units all registered double-digit gains in revenue ton-miles, with the rise in volumes due in part to economic growth, market share gains, and a labor disruption at a key competitor."
Canadian Pacific Railway said it had a lower profit of C$103 million in the second quarter of 2012,compared to C$128 million in the same 2011 period.
Revenue was C$1.4 billion in the second quarter of 2012, compared to C$1.3 billion in the same 2011 period.
In addition to the strike, CP saw a hard-fought proxy battle led by dissident shareholder William Ackman. Ackman and his allies took control of the company's board and installed Hunter Harrison as CEO following the resignation of Fred Green.
In a conference call with analysts on Wednesday, Harrison said the company would look at reducing costs through improving its terminals and reducing their numbers.