The biggest Canadian railroad moved 1.5 million carloads of freight in the quarter to Sept. 30, up 11 percent from a year earlier.

The company's operating ratio, a key measure of efficiency, improved one percentage point from a year earlier, to 58.8 percent. The ratio expresses operating expenses as a percentage of revenue, so lower numbers indicate better results.

Net income rose to C$853 million ($760 million), or C$1.04 a share, from C$705 million, or C$0.84 a share, a year earlier. Revenue rose 16 percent to C$3.12 billion.

Analysts had been expecting earnings of C$1.05 a share on revenue of C$3.14 billion, according to Thomson Reuters I/B/E/S.

(Corrects operating ratio improvement to one percentage point, not basis point, in third paragraph)

(Reporting by Allison Martell; editing by Chris Reese and David Gregorio)