Canadian Pacific reports record Q3 revenue and record Q3 operating ratio

Photo by William Beecher

Canadian Pacific Railway Limited today announced record third-quarter revenues of $1.98 billion, and reported diluted earnings per share (EPS) of $4.46, or $4.61 on an adjusted diluted EPS basis. The Company also achieved a record-low quarterly operating ratio of 56.1 percent.

“After a record second-quarter that included strong operating metrics including train speed and terminal dwell, we continue to see those performance measures be improved upon,” said Keith Creel, CP President and CEO. “Our disciplined approach to precision scheduled railroading and the commitment of our 13,000-strong CP family puts us in a position to control what we can as we navigate softer volumes, macroeconomic challenges and geopolitical tensions into the fourth quarter.”

THIRD-QUARTER HIGHLIGHTS

Strong operational performance in train speed, terminal dwell, fuel efficiency and record car miles per car day

Revenues increased by 4 percent to $1.98 billion, a record, from $1.90 billion last year

Reported diluted EPS of $4.46, a 3 percent increase from $4.35 last year, and adjusted diluted EPS of $4.61, a 12 percent increase from $4.12 last year

Operating ratio was a record-low 56.1 percent, a 220 basis point improvement over last year’s third-quarter operating ratio of 58.3 percent and a 40 basis point improvement over the Q4 2018 record of 56.5 percent

“Our operating model allows us to quickly adapt in a changing environment,” said Creel. “By controlling our costs real-time, we continue to drive margin improvements. While we now expect low-single digit volume growth for the year, we remain confident in our guidance to deliver full-year double-digit adjusted diluted EPS growth.”

A Canadian Pacific news release.

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