Canadian National Railway Co  reported a 6.5 per cent fall in quarterly revenue on Tuesday as it moved lower volumes of crude oil, coal and fracking sand.

CN said carloads fell 4.4 per cent in the third quarter ended Sept. 30. Revenue fell 6.5 per cent to $3.01 billion.

However, the company said its operating ratio, a key metric, dropped to 53.3 per cent, from 53.8 per cent, a year earlier.

The lower the ratio, which measures operating costs as a percentage of revenue, the more efficient the railroad.

The company's net income fell to $972 million, or $1.25 per share, from $1.01 billion, or $1.26 per share, a year earlier.

CN also raised it full-year 2016 adjusted earnings forecast.

By contrast, rival Canadian Pacific Railway Ltd last week cut its full-year earnings forecast, due mainly to a delayed grain harvest and lower crude oil volumes.