Canadian Pacific Reports Quarterly Revenue Record in 3Q
Canadian Pacific Railway Ltd. posted revenue of C$1.9 billion in the third quarter, a record for any quarter in company history, the Calgary, Alberta-based railroad announced Oct. 18.
The rise in revenue marks a 19% increase from $1.6 billion in the third quarter of 2017. CP reported revenue increased across all key segments.
The company reported diluted earnings per share of $4.35 a share, up 24%, compared with $3.50 EPS in the same period of 2017.
“This quarter really showed what our operating model and our 13,000-strong family of CP railroaders can do,” CEO Keith Creel said. “It was a record by almost every measure and sets us up well for the remainder of the year and beyond.”
CP’s operating income was $790 million compared with $622 million, a 27% increase from the year-ago period.
The railroad’s operating ratio also improved to a record-low 58.3 down from 61. Operating ratio, or operating expenses as a percentage of revenue, is a key industry metric used to measure efficiency. The lower the ratio, the greater the company’s ability to generate profit.
CP announced Oct. 4 it was raising its full-year guidance and due to the record third-quarter, the company now says it expects its adjusted diluted earnings per share in 2018 to increase by more than 20%, up from the earlier guidance of low-double digit growth.
