My takeaway from the Q2 earnings is that we have passed the peak season for the year. In the months before June, CNI's profits were mainly from fertilizer and grain shipments. Revenue rose across the board for all cargo except coal and automotive and they are expanding into the latest trend of crude shipments over the next 18 months. For the remainder of the year they are forecasting growth in lumber and crude.
I'm glad CNI is expanding into crude-by-rail, especially heavy crude which gives them an edge over pipeline operators who have to dilute the crude to pump it and they are perfectly suited for this move because of their long haul lines from the Gulf to Western and Eastern Canada. This should balance the cyclical nature of their grain cargo and help offset declining coal loads.
