 | Canadian Pacific Railway Limited - CP.t was founded in 1881 to physically unite Canada and Canadians from coast to coast. Canadian Pacific spun out its five subsidiaries into separate companies in late 2001. CPR's 14,000-mile network extends from the Port of Vancouver to The Port of Montreal, and to the U.S. industrial centers of Chicago, Newark, Philadelphia, Washington, New York City and Buffalo. |  |
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Globe says CP second quarter profit soars 48%
The Globe and Mail reports in its Friday, July 18, edition that Canadian Pacific Railway saw second quarter profit climb 48 per cent, as the rail operator saw revenue surge as it cleared a backlog of freight after a long winter. The Globe's Eric Atkins writes that CP's net income for the April-June period was $371-million or $2.11 a share. Revenue was $1.68-million, an increase of 12 per cent from the year-earlier quarter.
Analysts had been expecting a profit of $2.09 per share and revenue of $1.65-billion. Mr. Atkins says CP and other large North American railways are expected to enjoy high traffic volumes this year, as they clear the winter backlog of goods and benefit from a large grain harvest. However, higher costs due to increased congestion on the rails and longer stays at freight terminals are hurdles, notes Mr. Atkins. The Chicago hub, in particular, is a chokepoint for rail traffic. CP's operating ratio improved to 65.1 per cent. Analysts had expected an operating ratio of 64.8 per cent. The Globe notes that a lower ratio is better. CP shares have risen by 23 per cent this year. For the second quarter, CP's revenue from Canadian grain rose by 32 per cent from the year-earlier period.
Chief Executive Officer E. Hunter Harrison said today direct face-to-face discussions based on facts are the best way to make progress on strengthening Canada’s grain handling and transportation system.
“We need constructive dialogue instead of the ongoing back and forth that is happening in the media among various parties,” said Harrison. “CP has reached out to customers and other stakeholders, including the Western Grain Elevator Association, and look forward to further constructive dialogue in person, rather than through the media. This way, stakeholders like the WGEA, would have a better understanding of supply chain realities and everything CP is doing to continue to move record amounts of grain.”
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