(The following story by Nicolas Van Praet appeared on the Financial Post website on September 4.)
OTTAWA — Canadian Pacific Railway Ltd., smacked in July by a 40% profit plunge in its latest quarter, has shuffled its executive ranks.
The railroad said that Mike Lambert, executive vice-president and chief financial officer, has been replaced by Kathryn McQuade effective immediately.
The company gave no reason for the sudden switch, saying in a brief statement Thursday only that Mr. Lambert “has left the company to pursue other interests.”
Brock Winter will return to the role of senior vice-president of operations after he has finished reviewing how the company can boost its productivity and efficiency, the railway said. In addition to the CFO responsibilities, Ms. McQuade will continue overseeing CP’s business information services and strategic sourcing group, the company said.
CP shares fell $2 to $62.61 in morning trading on the Toronto Stock Exchange.
Ms. McQuade joined CP in 2007, serving as executive vice-president and chief operating officer. A chartered public accountant, she was executive vice-president of planning and chief information officer at Norfolk Southern railway.
A rapid rise in fuel costs, a sluggish economy and flooding in the U.S. Midwest ripped into CP’s earnings for its latest quarter ended June 30, driving down profit to $155-million from $257-million in the year-earlier period. In response, the railway vowed to become leaner and named Mr. Winter to a new senior management position mandated to drive out operational inefficiency.