Class I railway Canadian Pacific’s (CP) net income for the quarter surged 47 percent year-over-year to $510 million Canadian (U.S. $408 million) amid higher revenues and volumes, according to the company’s most recent financial statements.
Canadian Pacific (CP) drove up net income 47 percent in the third quarter of 2017 from a year prior to $510 million Canadian (U.S. $408 million), according to the Class I railway’s most recent financial statements.
Revenues for the quarter ticked up 2.6 percent year-over-year to C$1.6 billion.
“The revenue increase can be attributed to a 2.7 percent increase in volumes, which was offset by a 0.2 percent decrease in revenue per car,” investment bank Stifel said.
Canadian Pacific experienced year-over-year volumes increases in coal; potash; forest products; energy, chemicals and plastics; and metals, minerals and consumer products. However, these increases were partially offset by volumes declines in grain; fertilizers and sulfur; automotive; and intermodal.
Canadian Pacific posted an operating ratio of 56.7 percent for the quarter, an improvement from an operating ratio of 57.7 percent for the third quarter of 2016.
The railway averaged 12,149 employees during the quarter, compared to averaging 11,750 employees during the third quarter of 2016.
“Volume momentum grew over the course of the quarter, setting us up for a strong finish to the year,” Canadian Pacific President and CEO Keith Creel said. “We remain grounded in our foundations of precision railroading and continue to pursue sustainable, profitable growth, which has us well-positioned to finish the year with strong momentum leading into 2018 and beyond.”
In addition to strong third quarter results at Canadian Pacific during the quarter, Jacksonville, Fla.-based Class I railway CSX also recently posted a modest increase in net earnings and revenues for the quarter from a year prior.
CP drives up earnings in Q3 2017
