(Source: Canadian Pacific Railway press release, July 20, 2016)
CALGARY, Alberta — Canadian Pacific Railway Limited today announced second-quarter reported diluted earnings per share (EPS) of $2.15, or $2.05 on an adjusted diluted EPS basis, and an operating ratio of 62 percent.
Reported diluted EPS declined 9 percent to $2.15 from $2.36 and adjusted diluted EPS decreased 16 percent to $2.05 from $2.45 due in large part to a 12 percent drop in revenues.
“Revenue challenges in the second quarter, as noted in our quarterly outlook release last month, included lower-than-anticipated bulk volumes, devastating wildfires in northern Alberta and a strengthening Canadian dollar,” said CP’s Chief Executive Officer E. Hunter Harrison. “Despite these challenges, our team of dedicated railroaders continues to perform and their hard work and focus on service, safety and controlling costs, positions CP well for the rest of the year.”
SECOND-QUARTER RESULTS
• Revenues fell 12 percent to $1.45 billion from $1.65 billion
• Operating income decreased 15 percent to $551 million from $646 million
• Operating ratio increased 110 basis points to 62 percent from 60.9 percent
• Reported net income declined 16 percent to $328 million; adjusted income fell 23 percent to $312 million.
“Our business model provides the flexibility and capacity to take advantage of changing market conditions – as volumes increase, we are well-equipped and ready to respond accordingly,” Harrison said.
The company will discuss its results with the financial community in a conference call beginning at: 11 a.m. eastern time (9 a.m. mountain time) on July 20.
View the second-quarter earnings release and financial reports:
http://www.cpr.ca/en/investors/earnings-releases