Canadian Pacific Railway Limited announced second quarter revenues of $1.75 billion, an increase of 7 percent from last year, and reported diluted earnings per share (EPS) of $3.04, or $3.16 on an adjusted diluted EPS basis.
“Overall, it was a good quarter that sets the franchise up well for the remainder of 2018 and beyond,” said Keith Creel, CP President and Chief Executive Officer. “Our quarterly performance was impacted by service interruptions related to labour negotiations and strike notices. However, we were able to reach tentative long-term agreements with both the Teamsters Canada Rail Conference and the International Brotherhood of Electrical Workers which will serve the CP family, customers, shareholders and the North American economy well for years to come.”
SECOND-QUARTER HIGHLIGHTS
- Volumes as measured by revenue ton-miles increased 4 percent and carloads increased 2 percent
- Revenue increased by 7 percent to $1.75 billion from $1.64 billion
- Reported diluted EPS was $3.04, down 7 percent from $3.27, and adjusted diluted EPS was $3.16, a 14 percent increase from $2.77 last year
- Operating ratio was 64.2 percent, an increase of 140 basis points compared to last year’s restated operating ratio of 62.8 percent.(1)
“It is an exciting time to be at CP as we are well positioned for a strong second half of the year,” Creel said. “With labour stability in place, strong underlying network performance and a robust demand environment, the path is clear and the opportunities are many. We will continue to take a disciplined and strategic approach to growing the franchise, but with our 12,800 strong CP family and our precision railroading model, there has never been a better time to be a CP railroader.”
CP looks forward to hosting the financial community at its Investor Day on October 3-4, 2018 in Calgary, where the company will showcase how it is uniquely built to drive sustainable, profitable growth.
(1) Second quarter 2017 Operating ratio was restated from 58.7% to 62.8% to reflect the adoption of the new accounting standard for the presentation of net periodic benefit recoveries, which is discussed further in Note 2 Accounting changes in CP’s Interim Consolidated Financial Statements for the period ended June 30, 2018.
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