Canadian Pacific Railway continued a positive second quarter for rail freight carriers with profits jumping 46% due to growth in business in intermodal and the transportation of grain, potash, metals and minerals.
Net income for the second quarter was C$480 million, or $3.27 per share. One year ago, the totals were $328 million or $2.15. Revenue grew 13% to $1.6 billion.
“This quarter’s impressive results demonstrate the power of precision railroading,” CEO Keith Creel said. “Strong volumes across many of our key business segments, combined with disciplined cost control, produced record operating income and earnings for the quarter.”
Creel took over earlier this year when E. Hunter Harrison left the company and eventually landed at CSX in Jacksonville, Fla. Harrison introduced the precision railroading concept and Creel pledged to keep to the principles during his tenure.
Intermodal volumes grew 4% year-over-year to 248,600 loads. Revenue per carload jumped 3% to $1,362 and overall revenue improved 8% to $338 million.
Grain volumes improved 13% to 111,000. Revenue per carload went up 6% to $3,273 and overall revenue increased 20% to $363 million.
Metals, minerals and consumer product volumes rose 27% to 63,400. Revenue per carload was up 8% to $3,011 and overall revenue grew 36% to $190 million.
Potash volumes went up 30% to 36,900, revenue per carload improved 5% to $2,946 and overall revenue jumped 38% to $109 million.
Coal business also rebounded from a difficult couple of years. Volume rose 10% to 81,600, revenue per carload eked out a 1% gain to $2,030 and overall revenue was up 11% to $165 million.
Operating ratio improved 330 basis points year-over-year to a second-quarter record of 58.7%.
Through the first half of the year, profits were up 5% to $911 million or $6.20. Revenue grew 6.7% to $3.2 billion.
“We are off to a strong start in 2017 and remain confident that our team of committed railroaders will continue to safely and efficiently deliver results for our customers and shareholders in the second half of the year and beyond,” Creel said.