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Canadian Pacific Railway Ltd. on July 16 reported record second-quarter revenues of nearly C$1.98 billion, a 13% increase from the $1.75 billion in 2018. Income also surged to $724 million or $5.19 a share, compared with $436 million or $3.05 a share in 2018.
The Calgary, Alberta-based Class 1 freight carrier’s operating ratio also significantly improved to a second-quarter record of 58.4 from 64.2 in 2018. Operating ratio, or operating expenses as a percentage of revenue, is a crucial industry metric used to measure efficiency. The lower the ratio, the greater the company’s ability to generate profit.
“I commend the team for this record second-quarter performance,” CEO Keith Creel said. “These results demonstrate the strength of Precision Scheduled Railroading and are a testament to our collective commitment to deliver for our customers and the broader economy.”
Freight revenue in all nine of the railroad’s sectors — grain; coal; potash; fertilizers and sulfur; forest products; energy, chemical and plastics; metals, minerals and consumer products; automotive; and intermodal increased to $1.93 billion from $1.70 billion in 2018.
“This quarter, we saw revenue growth across every line of business, strong operating metrics and our best-ever second-quarter performance from a workload perspective, as measured by gross ton-miles,” Creel said. “As has been proven time and again, our operating model can perform well in all economic conditions, and we will remain disciplined in controlling our costs and doing what we said we would do.
“Our strategy for sustainable, profitable growth is working, and we look forward to a strong finish to 2019.”
Canadian Pacific is a transcontinental railway in Canada and the United States with direct links to major ports on the West and East coasts.