Wednesday, July 25, 2012

CP earnings up for second quarter and first half

Written by  Luther S. Miller, Senior Consulting Editor

Canadian Pacific Railway announced Wednesday that it earned net income of C$103 million (roughly US$101 million) and diluted earnings per share of 60 Canadian cents, "inclusive of the negative impact of approximately [C]$0.30 from significant items including management transition and advisory costs." In addition, a nine-day strike following the railroad's takeover in a proxy fight is estimated to have reduced EPS by 25 to 30 Canadian cents.

Total second-quarter revenue was C$1.4 billion, an increase of C$93 million. Operating income was C$239 million, an increase of C$8 million. Operating ratio was 82.5%, an increase of 80 basis points. Net income was $103 million, a decrease of $25 million.

For the first half of 2012, net income was C$245 million, an increase of 51%, and diluted earnings per share came to C$1.42, an increase of 49%. CP said these increases were "primarily due to increased volumes and improved operating performance."

CP President and CEO E. Hunter Harrison said: "I look forward to working with a solid team of dedicated railroaders to improve CP's service offering and drive long-term shareholder value. Canadian Pacific is a strong franchise with positive market opportunities."