CN revises earnings guidance lower after work stoppage, says operations recovered

Canadian National Railway Co. CNR-T revised its earnings guidance for 2024 lower due to several factors including the recent labour stoppage that saw both Canada’s major railways grind operations to a halt.

The company made the announcement as it also said its operations have recovered after the shutdown.

Both CN and Canadian Pacific Kansas City Ltd. locked out more than 9,000 workers in August as contract negotiations broke down.

The Canada Industrial Relations Board ordered employees back to work and ordered binding arbitration, both of which the Teamsters union has challenged.

CN says it expects to deliver adjusted earnings-per-share growth in the low single-digit range, compared with a July projection of mid to high single-digit growth.

That July projection was also a revision lower due to the uncertainty from the potential work stoppage.