By Josh Beckerman

Canadian National Railway Co. said third-quarter revenue fell 11% to C$3.41 billion, reflecting the effects of the Covid-19 pandemic, but demand recovered in some sectors.

On 3Q results:

"The decrease in revenues was mainly due to lower volumes across most commodity groups caused by the ongoing effects of the Covid-19 pandemic and lower applicable fuel surcharge rates, partly offset by freight rate increases as well as increased shipments of Canadian grain. RTMs, measuring the relative weight and distance of freight transported by CN, declined by 7% from the year-earlier period. Freight revenue per RTM decreased by 3% over the year-earlier period."

On product demand trends:

"During the third quarter of 2020, demand partially recovered, with sequential improvements in volumes relative to the second quarter of 2020, but overall demand remained below 2019 levels. By the end of the third quarter of 2020, demand for certain commodities had recovered at or close to 2019 levels, including intermodal, driven by increased online consumer spending on imported goods as well as consumer staples, particularly the grocery sector."

"The demand for less economically-sensitive products, such as export grain and fertilizers, continued to remain positive compared to last year. The demand for other commodities that CN transports remained below pre-pandemic levels including finished vehicles, industrial products used or produced by manufacturing, petroleum and chemical products, coal, and frac sand used in energy exploration as a result of ongoing economic uncertainty."

Write to Josh Beckerman at josh.beckerman@wsj.com

(END) Dow Jones Newswires

10-20-20 1912ET