Canadian National Railway said its second-quarter 2010 net income increased by 38% to C$534m ($513m) from C$387m ($371m) in 2009.
The company's revenue rose by 18% to C$2.09bn ($2bn) resulting from higher freight volumes in all markets.
Revenue ton-miles of rail freight transported increased by 15% compared with the same period in 2009.
The railway also said its operating ratio improved by 6.1 points to 61.2% and operating expenses by 7%.
