Port strike will take two months for recovery, CN says, as wildfires dent earnings

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

port strike will take two months to recover from, adding to the headaches of a company that lowered its earnings forecast amid falling profits brought on by a sluggish economy and a slew of natural disasters.

However, the company's goal of ramping up profitable growth through 2026 and beyond remains on track, she insisted, even as the railway taps the brakes on its hiring plan amid economic shudders. The flames halted operations at lumber mills amid rolling evacuations. “Most of the business lost in Q2 will not be recoverable," said chief marketing officer Doug MacDonald, referring to forest product shipments.

The disruption will have a "minor impact" on earnings this quarter, MacDonald said. But he projected it will take eight weeks to clear the backlog caused by the labour action.

 

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