MONTREAL, April 26, 2016 /CNW/ - Claude Mongeau, president and chief executive
officer of CN (TSX: CNR) (NYSE: CNI), said today the company has
made huge strides since its 1995 initial public share offering
(IPO), transforming itself into a North American railway and true
backbone of the economy.
"CN's journey since its IPO is the story of a remarkable and
uniquely successful business transformation," Mongeau told the
company's annual meeting of shareholders here.
Once an industry laggard based largely in Canada, CN today is the clear North American
rail industry leader. Following five successful acquisitions, the
company now efficiently spans eight Canadian provinces and 16 U.S.
states, transporting more than C$250
billion worth of goods annually over a 20,000-route-mile
network that reaches all three coasts on the continent.
Mongeau said core financial measures attest to CN's superior
record of efficiency, profitability and shareholder value-creation
since the IPO:
- The railway's operating ratio – a key measure of efficiency –
in 2015 improved to a record 58.2 per cent from 89.4 per cent in
1994, the year before privatization, and has consistently been the
best in the industry since 1998.
- CN has generated almost 20 per cent average annual growth in
adjusted diluted earnings per share since becoming a
publicly-traded company.
- From an initial value of C$2
billion in 1995, CN's market capitalization has increased
several fold to stand at C$63 billion
currently. Close to C$70 billion of
capital gains and dividend distributions have been generated since
the IPO for the benefit of loyal investors who rely on CN for the
effective stewardship of their stock ownership.
The privatization of CN 20 years ago was a pivotal policy
decision by the Canadian government that gave impetus to a wave of
broadly positive change and fundamental innovation. CN's uniquely
successful business transformation unlocked significant and lasting
value for all stakeholders involved, and it serves to underscore
the importance of a vibrant commercial policy framework staying in
place for the North American rail industry.
"We are extremely proud of our transformational journey,"
Mongeau said. "Today we touch just about every sector of the
economy, serving thousands of valued customers with high quality
and reliable service at world-class freight rates. With the right
policy framework in place, we will continue to fulfill the
extraordinary promise of CN's business transformation with
significant investments in our business and bold customer service
innovation."
CN is a true backbone of the economy, transporting more than
C$250 billion worth of goods annually
for a wide range of business sectors, ranging from resource
products to manufactured products to consumer goods, across a rail
network of approximately 20,000 route-miles spanning Canada and mid-America. CN – Canadian National
Railway Company, along with its operating railway subsidiaries –
serves the cities and ports of Vancouver, Prince
Rupert, B.C., Montreal,
Halifax, New Orleans, and Mobile, Ala., and the metropolitan areas of
Toronto, Edmonton, Winnipeg, Calgary, Chicago, Memphis, Detroit, Duluth,
Minn./Superior, Wis., and
Jackson, Miss., with connections
to all points in North America.
For more information about CN, visit the Company's website at
www.cn.ca.
SOURCE CN