Friday, August 28th20.4°C
27214
26337

Canadian Pacific second-quarter profits rise to $371 million, revenues increase

CALGARY - Canadian Pacific Railway Ltd. (TSX:CP) posted "record after record after record" in the second quarter despite the lingering effects of a harsh winter, CEO Hunter Harrison said Thursday in touting earnings results that surpassed expectations.

Profits grew 48 per cent in the April-June period compared with a year earlier, even as the nasty weather's impact dragged into April, particularly in its U.S. Midwest operations where congestion around Chicago has been an ongoing issue.

Net income rose to $371 million from $252 million for the same period ended June 30 a year ago.

On a per share basis, profits were $2.11, a penny higher than analyst expectations as compiled by Thomson Reuters.

Revenues increased to $1.68 billion from $1.5 billion.

Operating expenses were two per cent higher at $1.09 billion.

Canadian Pacific's operating ratio — a closely watched industry measure of operating expenses as a share of revenues — was an "outstanding" 65.1 per cent, Harrison said.

A year earlier, the company's operating ratio was 71.9. The lower the operating ratio, the better.

While a sub-60 operating ratio isn't out of the question for the third quarter, Canadian Pacific isn't changing its 2014 target of 65 or lower, Harrison said.

"If there's no unforeseen issues in the third and fourth quarter, you're going to see some pretty good numbers there."

The railway's shares were up 3.4 per cent at $204.58 in afternoon trading on the Toronto Stock Exchange. CP's results also gave a lift to rival Canadian National Railways (TSX:CNR). Its shares gained 53 cents to $71.98 ahead of the release of its earnings on Monday

Canada's two biggest railways — Canadian Pacific and Montreal-based Canadian National — have been under pressure to deal with a backlog of Western Canadian grain shipments they've blamed on poor winter conditions combined with a record crop. Farmers and government officials have questioned that explanation.

Earlier this year, the federal government stepped in with measures to get the grain carloads moving, slapping fines on railways that don't ship a certain amount of grain every week.

Harrison has been blunt in his criticism of Ottawa's moves.

"Anyone that thinks that some of this legislation...can have an impact on moving grain, they're nuts," he said, adding recent flooding in the Prairies doesn't appear to have affected this year's crop as much as expected.

"They don't know anything about the infrastructure or the movement or grain."

Meanwhile, Canadian Pacific said late Wednesday it would go to court to try and block an arbitrator's ruling that a cocaine-using locomotive engineer be reinstated. The case stems from an incident in late 2012.

The railway said the worker took the drug "at a time and of a quantity which could impact his duties."

"The arbitrator's decision is an outrage and, as a railroader, I am appalled we would be forced to place this employee back in the cab of a locomotive," said Harrison.

Also, on Wednesday afternoon, 24 rail cars went off the tracks west of Moose Jaw, Sask., but there were no leaks, injuries or threats to public safety.

Follow @LaurenKrugel on Twitter

The Canadian Press


Read more Business News

27509


Recent Trending




Today's Market
S&P TSX13865.07+98.40
S&P CDNX555.67+10.10
DJIA16643.01-11.76
Nasdaq4828.32+15.62
S&P 5001988.87+1.21
CDN Dollar0.75730.00
Gold1119.50-5.10
Oil45.26+2.70
Lumber237.20-9.70
Natural Gas2.719+0.055

 
Okanagan Companies
Pacific Safety0.165+0.005
Knighthawk0.010.00
QHR Technologies Inc1.29+0.05
Cantex0.04-0.01
Anavex Life Sciences1.34-0.05
Metalex Ventures0.055+0.000
Russel Metals21.41+0.43
Copper Mountain Mining0.64-0.01
Colorado Resources0.075-0.005
ReliaBrand Inc0.004-0.000
Sunrise Resources Ltd0.025+0.005
Mission Ready Services0.07+0.01
Decisive Dividend Corp2.75+0.14

 



26764

FEATURED Property
2402154320 McCarren Ave
5 bedrooms 3 baths
$549,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Agree to ask questions

Photo: Thinkstock.comThe STORY: I think, said Janet to herself, that I just figured out a solution to my problem of letting the prospect run the meeting.With that thought in mind, she got out of her c...


Your business is not a bank

Photo: Thinkstock.comYour plumbing business is not a bank. But when you are giving terms to customers that exceed what you get from your suppliers, you become one. And every time that someone does not...


Begin with the end in mind

Photo: ContributedWe humans love our dates: birthdays, anniversaries, 9/11, the Ides of March - our lives are intimately woven within the tapestry of the calendar. So it should come as no surprise whe...

_



26509

27313


Member of BC Press Council


24222