Second-quarter net profit totaled CA$724 million compared with CA$436 million in the second quarter of 2018.
Canadian Pacific’s (NYSE: CP) second-quarter net income rose 66% amid a 13% increase in company revenue, the railroad reported Monday.
CP’s financials are reported in Canadian dollars, except for earnings per share. The Canadian dollar equals 77 cents U.S.
Second-quarter net profit totaled CA$724 million compared with CA$436 million in the second quarter of 2018. Put another way, second-quarter net profit was $5.17 per diluted share in the second quarter of 2019, compared with $3.04 per diluted share in the second quarter of 2018.
Operating income in the second quarter rose 31% to CA$822 million from CA$627 million for the same period in 2018.
Second-quarter revenue totaled CA$1.98 billion, compared with CA$1.75 billion in the second quarter of 2018. Freight revenues rose for all commodities except for the metals, minerals and consumer products category.
Operating expenses were CA$1.16 billion in the second quarter of 2019, compared with CA$1.12 billion in the second quarter of 2018.
Meanwhile, CP’s operating ratio was a record 58.4% in the second quarter of 2019, compared with 64.2% for the same quarter last year.
CP Chief Executive Officer Keith Creel attributed his company’s second-quarter performance to the “strength” of precision scheduled railroading and CP’s commitment to deliver business to customers and serve the broader economy.
“This quarter we saw revenue growth across every line of business, strong operating metrics and our best-ever second-quarter performance from a workload perspective, as measured by gross ton-miles,” Creel said.
He continued, “As has been proven time and again, our operating model can perform well in all economic conditions and we will remain disciplined in controlling our costs and doing what we said we would do. Our strategy for sustainable, profitable growth is working and we look forward to a strong finish to 2019.”
CP’s operational metrics improved in the second quarter compared with the same period in 2018. Average terminal dwell time, which is the amount of time a train spends at a terminal, fell 4% to 6.4 hours, and average train speed rose 5% to 22.4 miles per hour.
