Canadian National Railway - CNI STOCK NEWS

CN has released its 2024-2025 Winter Plan, focusing on proactive solutions to address winter operational challenges. The plan highlights key initiatives:

1. Technology advancements: Deployment of 4th generation Autonomous Track Inspection Program (ATIP) using ground penetrating radar for detailed ballast and subgrade assessments.

2. Network reliability: $1 million investment in overhauling 20 air cars, part of a $61.6 million air car program since 2009 to improve service reliability and protect capacity.

3. Response readiness: Strategic reserve of locomotives in critical corridors and deployment of backup power generators across the network.

4. Workforce growth: 9% increase in available CN operating employees between April 2023 and May 2024.

CN announced that Unifor, representing 3,300 Mechanical, Clerical, and Intermodal employees in Canada, has filed a Notice of Dispute just three days after negotiations began. The current collective agreements, covering three separate agreements, are set to expire on December 31, 2024. Despite expressing disappointment at the early filing of the Notice, CN remains committed to reaching negotiated agreements that benefit employees, customers, and the economy.

CN (TSX: CNR) (NYSE: CNI) has launched its annual See Tracks? Think Train® Week campaign from September 23-29, 2024, to raise awareness about rail safety. CN Police Services and employees will actively share important rail safety messages in communities across CN's network to help prevent rail-related accidents and injuries.

The campaign highlights the critical importance of being safe around rail property, as there are on average over 2,000 crossing accidents and 1,000 trespassing incidents each year in North America. In 2023, there were 2,192 rail crossing collisions reported in the U.S., resulting in 247 fatalities and 766 injuries.

CN promotes rail safety in all communities it operates through, with over 428 communities signing resolutions or proclamations officially recognizing Rail Safety Week in 2023. The company emphasizes that safety is a shared responsibility and urges communities to get involved in spreading the safety message.

CN (TSX: CNR) (NYSE: CNI) is offering media interviews with CN police officers during See Tracks? Think Train Week, an annual public awareness campaign from September 23-29, 2024. The initiative aims to promote rail safety and prevent accidents at crossings. CN officers will participate in safety initiatives across the country, sharing tips and highlighting the dangers of trespassing on railway property.

Media outlets can arrange onsite, in-studio, or on-air interviews with CN officers through regional media contacts. Visual elements will be available for various media formats. CN emphasizes that safety is a shared responsibility and encourages community involvement in spreading awareness about rail crossing safety and the risks of trespassing on tracks.

CN (TSX: CNR) (NYSE: CNI) has announced a public debt offering of US$750 million in 4.375% Notes due 2034. The offering is expected to close on September 18, 2024, subject to customary conditions. The net proceeds will be used for general corporate purposes, potentially including debt redemption, refinancing, share repurchases, acquisitions, and other business opportunities.

The debt offering is being made in the United States under a shelf registration statement dated April 2, 2024. Several major financial institutions are involved as joint book-running managers, senior co-managers, and co-managers. Interested parties can obtain a copy of the prospectus supplement and accompanying prospectus from the specified contacts.

CN (TSX: CNR) (NYSE: CNI) has announced the recovery of its operations following labor uncertainty and a network shutdown in Canada. The company is adjusting its 2024 guidance and long-term financial outlook due to various factors, including labor issues, wildfires in Alberta, and weaker demand in key sectors. CN now expects:

- Adjusted diluted EPS growth in the low single-digit range for 2024 (previously mid to high single-digit growth)
- Capital investment of approximately C$3.5 billion
- Adjusted ROIC in the 13%-15% range for 2024 (previously ~15%)
- Compounded annual adjusted diluted EPS growth in the high single-digit range for 2024-2026

The company remains focused on executing its scheduled operating plan, growing volumes, pricing above rail inflation, and improving efficiency.

CN (TSX: CNR) (NYSE: CNI) has announced that Ghislain Houle, Executive Vice-President and Chief Financial Officer, will be presenting at Morgan Stanley's 12th Annual Laguna Conference on September 11, 2024. The presentation is scheduled to begin at 12:20 p.m. Eastern Time.

Investors and interested parties can access a live webcast of the presentation through CN's website in the Investors section. For those unable to attend the live event, a replay of the webcast will be made available after the conference concludes.

CN (TSX: CNR) (NYSE: CNI) has received an order from the Canada Industrial Relations Board (CIRB) imposing binding arbitration between the company and the Teamsters Canada Rail Conference (TCRC). The CIRB has also ordered that no further labour stoppage, including a lockout or strike, can occur during the arbitration process. This voids the recent strike notice issued by the Teamsters to CN.

The order extends the current collective agreement until a new agreement is signed. CN had been negotiating for nine months, offering improved pay, rest, schedules, and a voluntary mobile workforce. While disappointed that an agreement couldn't be reached at the bargaining table, CN is satisfied that this order ends the unpredictability affecting supply chains. The company remains focused on safely and efficiently resuming goods movement.

CN (TSX: CNR) (NYSE: CNI) has received a 72-hour strike notice from the Teamsters Canada Rail Conference (TCRC), with a potential strike starting at 10:00 AM ET on August 26, 2024. This comes after CN proactively ended a lockout following the Minister of Labour's direction for binding arbitration. CN emphasizes its focus on economic recovery, while criticizing the Teamsters' intent to strike.

Key points:

• CN claims to have negotiated in good faith for nine months, offering improved pay and working conditions
• Average 2023 earnings: conductors ~$121,000, locomotive engineers ~$150,000 (excluding benefits)
• CN offered modernized agreements in January and April, which were refused
• A simplified offer in May and proposal for voluntary binding arbitration in June were also rejected
• CN urges quick action from the Canada Industrial Relations Board (CIRB) to prevent economic harm