Despite a very cold and snowy winter, Canadian Pacific "delivered the best first quarter results in its history," said Chief Executive Officer E. Hunter Harrison in a press release issued this morning.
The Class I generated record revenue of $1.5 billion, up 9 percent, and achieved a record operating ratio of 75.8, down 4.3 points compared with first-quarter 2012. CP reported financial figures in Canadian dollars.
In addition, net income soared 51 percent to $217 million, or $1.24 per diluted share, operating income jumped 32 percent to $362 million and carloads rose 3 percent to 659,000 units.
"This is a true testament to the determination and perseverance of our outstanding team of railroaders," said Harrison. "[But] there remains a lot of work to do as we continue to make significant changes to our operating model."
The revenue gain was driven by an 25 percent leap in industrial and consumer products revenue (to $372 million) and a 21 percent jump in fertilizers and sulphur revenue (to $152 million). Grain and coal revenue each climbed 9 percent to $314 million and $149 million respectively, and forest products revenue rose 6 percent to $53 million, while automotive revenue fell 8 percent to $97 million and intermodal revenue dipped 4 percent to $322 million.
Operating expenses increased 3 percent to $1.3 billion primarily due to higher materials and depreciation/amortization costs.
"With a very strong start to the year and momentum quickly building, I am now even more confident that we are on pace toward the best year-end financial and operating performance in CP's history," said Harrison.
Browse articles on Canadian Pacific on Progressive Railroading