Speaking at the company's annual general meeting in Edmonton, Alberta, Chief Financial Officer Luc Jobin said that CN reported a 2012 operating ratio of 62.9 percent.
Operating ratio measures productivity by tallying how much revenue is required to maintain operations. The lower the number, the better.
"Looking ahead, we see a sustainable mid- to low-60s in terms of operating ratio. That's where we're at and that's what we see looking into the future," Jobin said.
CN's 2012 ratio, which Jobin said was close to 7 points better than its U.S. competitors', was bettered only in 2006, when CN had favorable one-time fuel hedging gains and claims adjustments, he said.
CN's smaller Canadian rival, Canadian Pacific Railway Ltd , is targeting a mid-60 percent operating ratio by 2016. The company, which announces first-quarter results on Wednesday, reported a 74.8 percent ratio in the fourth quarter and has forecast a low-70 percent range ratio for 2013. (Reuters)
