(Source: Canadian Pacific press release, April 20, 2016)
CALGARY, Alberta — Canadian Pacific Railway Limited today announced its lowest-ever first-quarter operating ratio of 58.9 percent and reported diluted earnings per share of $3.51 or $2.50 on an adjusted diluted earnings per share basis.
CP’s operating ratio improved by 430 basis points year-over-year and for a third straight quarter was below 60 percent. At 58.9 percent the OR is the lowest-ever when compared to adjusted operating ratios in previous quarters.[1]
Reported diluted earnings per share increased 83 percent to $3.51 from $1.92 and adjusted diluted earnings per share grew 11 percent to $2.50 from $2.26.
“The precision railroading model works in all economic environments,” said E. Hunter Harrison, CP’s Chief Executive Officer. “Despite weakness in the economy and volume headwinds, we focused on what we can control – our costs and our commitment to providing reliable service – and delivered a record performance.”
FIRST-QUARTER HIGHLIGHTS
• Revenues were down 4 percent to $1.59 billion from $1.67 billion
• Operating income advanced 7 percent to $653 million from $612 million
• Net income rose 69 percent to $540 million from $320 million, adjusted income was up 2 percent to $384 million from $375 million
“I am proud of what the team continues to produce quarter after quarter in these difficult times and we remain optimistic in our outlook given signs of stabilization within the Canadian economy and in key global markets,” said Harrison. “As market conditions improve and volumes increase, our team of professional railroaders will be ready. Furthermore, we are confident in our plan to deliver shareholder value, which includes the announcement of a new share repurchase program that demonstrates our continued confidence over the long-term.”
[1] In Q3 2015, CP had a reported operating ratio of 55.9 percent as a result of the sale of the D&H South, an item excluded from CP’s Q3 2015 adjusted operating ratio of 59.9 percent.
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