“Despite decreased revenues tied to a delayed grain harvest and stiff economic headwinds, our business model continues to perform on the cost side,” said CP CEO E. Hunter Harrison. “Our commitment to efficiency, asset optimization, and operational excellence has produced yet another record-low operating ratio.”
While CP’s third-quarter revenues decreased 9% to C$1.55 billion from C$1.71 billion compared to the prior-year quarter, diluted EPS rose 15% to C$2.34 from C$2.04, and adjusted diluted EPS advanced 1.0% to C$2.73 from C$2.69.
“Given the delayed grain harvest, lower crude volumes and persistent economic challenges compounded by a strengthening Canadian dollar, we are now expecting mid-single-digit EPS growth this year,” Harrison said. "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. Our industry-leading operating plan and continued focus on improving service to our customers means we are well-positioned to capitalize on increasing volumes leading into 2017.”