(Reuters circulated the following article on July 25.)
TORONTO — Canadian Pacific Railway Ltd. said on Tuesday its second-quarter profit more than tripled, thanks to a lower future income tax expense and a favorable swing in foreign exchange on long-term debt.
CP Rail earned C$378 million, or C$2.36 per share, in the quarter, on revenue of C$1.09 billion.
That’s up significantly from a profit of C$123 million, or 77 Canadian cents per share, and revenue of C$1.09 billion, in the same quarter a year earlier.
The results included a C$176-million reduction in future income tax expense and a favorable foreign exchange rate on long-term debt of C$58 million.
Excluding foreign exchange gains and losses on long-term debt and other specified items, diluted earnings per share was C$1.00.
Analysts surveyed by Reuters Estimates had expected, on average, earnings of 98 Canadian cents per share, with individual predictions ranging from 93 Canadian cents to C$1.07 per share.
Canadian Pacific, which has operations in both Canada and the United States, said its operating ratio, a railroad measure of efficiency, improved 40 basis points to 75.1 percent.