CN Rail lowers earnings forecast amid falling profits, weaker demand

Canadian National Railway Co. lowered its earnings forecast for the year amid falling profits and revenue last quarter and a sluggish economic environment.

Canada's largest railway said Tuesday it now expects flat to slightly negative adjusted diluted earnings in 2023, instead of the mid-single-digit growth it predicted three months ago.

Lower consumer demand as well as disruptions caused by wildfires reduced freight service over the second quarter, particularly for containers and lumber products, CN said.

But chief executive Tracy Robinson said the company's goal of ramping up profitable growth through 2026 and beyond remains on track.