CN profits hit record: 2nd quarter performance praised by Wall Street, 'nothing short of spectacular' says one analyst.(Rail & Intermodal)(Canadian National Railway)

A surge in freight volume and fluid network operations pushed second quarter earnings to record levels at Canadian National Railway and brought a heap of praise from Wall Street.

Canada's largest railroad had net income of $247 million for the quarter, a 34 per cent increase over the same period in 2003. In addition, the railroad's operating ratio, the best in the industry, was pared to 65.5 per cent, a 4.6 percentage-point improvement from second quarter 2003.

The railroad also closed on two acquisitions during the quarter: Great Lakes Transportation, which included shortline railroads and a lake vessel company, and BC Rail in British Columbia.

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