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July 21, 2015 10:40 AM, EDT

Canadian Pacific Lowers 2015 Outlook After Commodities Cargo Declines

Canadian Pacific Railway

Canadian Pacific Railway Ltd. on Tuesday announced the surprise departure of its chairman, Gary Colter, who had held the position for a little more than a year.

Canadian Pacific Railway cut its forecast for full-year revenue and earnings per-share growth while it seeks to control costs amid a decline in demand for commodities shipments.

The company also announced departure of its chairman, Gary Colter, who had held the position for a little more than a year, the Wall Street Journal reported.

Revenue growth is expected to be 2% to 3% in 2015, down from a January forecast of 7% to 8% growth, Canadian Pacific announced in a statement. Annual adjusted, earnings per share will be C$10 to $10.40, less than the $10.63 implied by an earlier forecast for 25% profit growth this year.

With the reigned-in forecast, Canada’s second-largest railroad diverged from other North American peers that have cut jobs to bolster earnings that beat estimates in recent days. Railroads have been battling a slump in coal, oil and grain shipments. Canadian Pacific announced that crude revenue slumped 29% in the second quarter.

Earnings excluding some costs and gains rose 16% to C$2.45 a share, the Calgary-based company said, in line with analysts’ estimates. Revenue was little changed at C$1.65 billion, trailing the C$1.68 billion average estimate.

“CP’s achievement on the bottom line came even as a sluggish North American recovery and stubborn global economic softness weighed on commodity prices, forcing producers to reduce output and cut shipments,” CEO Hunter Harrison said in the statement.