Canadian Pacific ‘demonstrates resiliency’ during Q4 and full-year 2020

A CP trained derailed near Minneapolis yesterday.

Canadian Pacific

Canadian Pacific Railway Limited yesterday announced its fourth-quarter results, including revenues of $2.01 billion, a record-low operating ratio (“OR”) of 53.9 percent, diluted earnings per share (“EPS”) of $5.95 and record adjusted diluted EPS of $5.06.

Fourth-quarter 2020 highlights

• Revenues decreased 3 percent to $2.01 billion, from $2.07 billion in Q4 2019
• OR improved by 310 basis points (bps) to 53.9 percent 
• Diluted EPS improved 23 percent to $5.95, from $4.82 in Q4 2019, while adjusted diluted EPS rose 6 percent to record $5.06, from $4.77 in Q4 2019

“With a foundation of strong operational performance and a commitment to controlling what we can, the team continues to deliver,” said Keith Creel, CP President and CEO. “Despite the continued COVID-19 impacts, volumes steadily improved over the second half of 2020 and we saw revenue ton mile (“RTM”) growth in the fourth quarter.”

Full-year 2020 highlights

• Federal Railroad Administration (“FRA”)-reportable personal injuries declined 22 percent to a record-low 1.11 from 1.42 in 2019, and CP’s FRA-reportable train accident frequency decreased 9 percent versus 2019 to a record-low 0.96 from 1.06
• Revenues decreased 1 percent to $7.71 billion, from $7.79 billion in 2019
• OR improved to a record-low 57.1 percent, a 280 bps improvement year over year
• Diluted EPS increased 3 percent to a record $17.97 from $17.52, while adjusted diluted EPS rose 7.5 percent to a record $17.67, from $16.44 in 2019

“I’m proud to say that our 2020 full-year results, including from a safety perspective, exceeded our expectations, in what has been one of the most challenging years any of us have faced,” said Creel. “I’m continually impressed by the resiliency of the CP family, particularly those who provide an essential service to North Americans day in and day out, no matter the challenges. The 12,000-strong CP family responded to extraordinary circumstances in 2020 with grit and courage, ensuring that our railway was able to serve our customers, shareholders and communities.”

For more information, please visit CP’s website.

Links to other Class 1 Q4 2020 earnings reports

Norfolk Southern Q4 2020 and full-year 2020 earnings results

CSX announces Q4 2020 earnings results

Kansas City Southern reports Q4 2020 and full-year 2020 results

Canadian National reports Q4 2020 and full-year 2020 results

Union Pacific reports Q4 2020 and full-year 2020 results