Second quarter revenues for Calgary-based Canadian Pacific Railway Ltd. hit $1.75 billion from $1.64 billion last year.
The company, in releasing its quarterly financial report on Wednesday, said revenues rose by seven per cent from a year ago. It also reported that diluted earnings per share of $3.04, or $3.16 on an adjusted diluted earnings per share basis.
Diluted EPS was down seven per cent from $3.27, and adjusted diluted EPS increased by 14 per cent from $2.77 last year.
For the three months, which ended June 30, net income for the company was $436 million, down from $480 million for the same period in 2017.
For the six-month period this year, net income has dropped to $784 million from $911 million a year ago.
“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, in a statement.
“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.”
The company also reported that volumes as measured by revenue ton-miles increased four per cent and carloads increased two per cent; and the operating ratio was 64.2 per cent, an increase of 140 basis points compared to last year’s restated operating ratio of 62.8 per cent.
“It is an exciting time to be at CP as we are well positioned for a strong second half of the year,” said Creel. “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.”
Respected business writer Mario Toneguzzi is a veteran Calgary-based journalist who worked for 35 years for the Calgary Herald in various capacities, including 12 years as a senior business writer.
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