Solid Bulk Volumes and Network Efficiency
Bulk volumes were very strong through the quarter due to CN's advantage network in the ag sector. Operating metrics such as velocity and customer service were robust, with a 50 basis point year-over-year improvement in margin.
Grain and Fertilizers Revenue Increase
There was a 12% increase in revenues for grain and fertilizers. Grain volumes were up 6% in Canada and almost 30% in the U.S., with potash RTMs up almost 30% driven by strong exports.
Operational Efficiency Improvements
Car velocity was at 213 miles per day with a 3% increase in train speed. The injury ratio improved by 16%, and T&E labor productivity improved by 11% year-over-year.
Free Cash Flow and Financial Management
Generated over $1.5 billion of free cash flow by June, up 5% from the previous year. Leverage at the end of Q2 was 2.5x, with plans to continue the share buyback program.