CN outlines details of its strategic plan
by CM Staff
The Company’s focus will be on redefining railroading, driving profitable growth and making structural improvements for the next generation.
MONTREAL — CN announced the details of its strategic and financial value creation plan, “Full Speed Ahead – Redefining Railroading,” which will allow CN to continue delivering service to customers while hopefully generating profitable growth and enhanced returns to shareholders. The plan announced on Sept. 17 builds upon CN’s January 2021 strategic plan to try and lead on safety, customer value, operational excellence, sustainability and social inclusion, while also delivering industry-leading shareholder returns.
“CN’s ambition is to build the premier railway of the 21st century by methodically investing in technologies to deliver high-quality service to customers, improve safety and sustainability, create capacity and reduce costs and delays. Just as CN pioneered the industry’s focus on efficiency to increase reliability, we are now well-positioned to lead the industry through its next transformation by investing in the success of our customers, workforce and communities while delivering enhanced financial results.” said JJ Ruest, President and Chief Executive Officer of CN.
CN is a franchise with 19,500 miles of railroad network connecting Canada’s Eastern and Western coasts with the U.S. South. As the only railroad with this three-coast access, CN has the best rail network in North America to drive long-term, sustainable, profitable growth.
The Company’s focus will be on redefining railroading, driving profitable growth and making structural improvements for the next generation. CN has conducted an extensive review of all revenue and cost levers and has targeted C$700 million of operating income improvements to drive future growth. To achieve these improvements in 2022, CN intends to use a balanced approach that includes a strategic review of non-rail businesses and an optimization of labor productivity.
For 2022 CN expects to grow operating income and earnings per share (EPS) by approximately 20% and improve its operating ratio to 57%. Additionally, CN is reviewing its capital structure and financial leverage with a view to increasing total shareholder distributions.