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Canadian Pacific today announced second-quarter revenue fell 9.6 percent to CA$1.79 billion from CA$1.98 billion a year ago, as the Class I dealt with the COVID-19 pandemic's impact on volume.
However, the Class I's precision scheduled railroading operating model helped the company adapt to the unusually challenging conditions, CP officials said in a press release.
CP posted diluted earnings per share (EPS) of $4.66, down 10 percent from last year, and adjusted EPS of $4.07, down 5 percent. Operating income for the quarter was CA$770 million, down 6.3 percent, while net income was CA$635 million, down 12 percent.
The company's operating expenses totaled CA$1 billion in the quarter, down 11.5 percent.
CP's operating ratio reached a second-quarter record of 57 percent compared to 58.4 percent a year ago.
"While economic uncertainty remains, we're controlling what we can control — our costs," said President and Chief Executive Officer Keith Creel. "Our strong bulk franchise, which included record movements for Canadian grain and potash in the first half of the year, helped to offset some of the declines we experienced in other lines of business."
Given its cost control measures, execution of PSR and improved clarity on the volume environment, the company now expects positive adjusted diluted EPS growth for the year, Creel said.
CP also continues to expect capital expenditures of CA$1.6 billion and a mid-single-digit decline in revenue ton miles.
In addition, the Class I's recent acquisition of the Central Maine and Quebec Railway, combined with a "continuing pipeline of unique growth opportunities," provides optimism for the remainder of 2020 and into 2021, Creel said.