Second-quarter financial results show Canadian Pacific has posted significant progress with its "transformational journey" to becoming a better performing railroad, CP officials said in a press release issued this morning.
Revenue climbed 10 percent to a quarterly record $1.5 billion, diluted earnings per share skyrocketed 138 percent to $1.43, net income soared 144 percent to $252 million, operating income ballooned 76 percent to $420 million, operating expenses declined 4 percent to $1.1 billion, carloads increased 3 percent to 668,000 and the Class I's operating ratio improved a whopping 10.6 points to a quarterly record 71.9 compared with second-quarter 2012 results (all financial figures are in Canadian dollars).
"The second quarter was a significant test for our employees who worked tirelessly during extensive network outages, including more than 40 washouts over a four-day period of historic flooding in Calgary and southern Alberta," said Chief Executive Officer E. Hunter Harrison.
Although the network interruptions negatively impacted revenue growth by about $25 million, or 2 percent, "the disciplined execution of our model allowed us to quickly recover from these challenges and restore service for our customers in a timely manner," he said.
By business group, bulk revenue climbed 11 percent and volume rose 2 percent as strong grain and fertilizer/sulphur demand offset weak coal traffic; intermodal revenue was flat and volume inched up 1 percent; and merchandise revenue jumped 14 percent and volume increased 9 percent driven by strong gains in the industrial products, automotive and forest products sectors.
For the remainder of the year, CP execs expect continual performance improvements to help the railroad reach its full-year financial goals of high-single-digit revenue growth, a low-70s operating ratio and a more than 40 percent year-over-year gain in diluted earnings per share.
"CP is well positioned to continue to build upon its strong first half and deliver record financial and operating results for 2013," said Harrison.
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