CN Rail is lowering its earnings forecast for the year after falling profits and revenue last quarter and a sluggish economic environment.

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

CN reports net income fell by 12 per cent year over year to $1.17 billion in the quarter ended June 30.

It says revenues in its second quarter dropped seven per cent to $4.06 billion from $4.34 billion in the same period a year earlier.

On an adjusted basis, diluted earnings per share fell nine per cent to $1.76 from $1.93 the year before.

CN says lower consumer demand as well as disruptions caused by wildfires reduced freight service, particularly for containers, crude oil, grain exports and forest products.

(Canadian Press)