Canadian Pacific profit up 7.4% to USD 265 million, sales up 9.3%
The Canadian Pacific Railway third quarter net profit increased 7.4% year on year to C$347 million (USD 265 million), drawn on revenues of C$1.55 billion, up 9.3%.
Canadian Pacific Railway's quarterly revenue was below analysts' expectations, hurt by a delayed grain harvest and economic headwinds that continue to hamper shipping volumes.
Calgary-based CP, Canada's second railway, also cut its earnings outlook for this year, citing the late grain harvest challenges, lower crude-oil volumes and a stronger Canadian dollar.
CEO Hunter Harrison said that "While disappointed that we will not meet our previous forecast, I am incredibly proud that despite these challenges, CP will deliver its lowest-ever annual operating ratio.”
Railways have been hit hard by the lengthy slump in commodity prices, which have curbed shipping volumes for bulk commodities such as grain and potash.
CP said it now expects annual per-share earnings growth in the mid-single-digits, down from its previous view of double-digit growth.
Tag Keyword: Canadian Pacific Railway , Revenues , Shipping Volumes , Crude Oil