Mr. Keith Creel reports
CP REPORTS FIRST-QUARTER REVENUES OF $1.77 BILLION; STRONG MOMENTUM HEADING INTO SECOND QUARTER
Canadian Pacific Railway Ltd. has released first quarter revenues of $1.77-billion and reported diluted earnings per share (EPS) of $3.09, or $2.79 on an adjusted diluted EPS basis.
"This past winter was one of the most challenging in my railroading career," said Canadian Pacific president and chief executive officer Keith Creel. "I applaud our employees for their resiliency in overcoming loss and pushing through extraordinary conditions and challenges throughout February and March. Our commitment to precision scheduled railroading enabled a strong recovery and gives us a solid foundation moving forward."
First quarter highlights:
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Revenues increased by 6 per cent to $1.77-billion, from $1.66-billion last year.
- Reported diluted EPS of $3.09, a 28-per-cent increase from $2.41 last year, and adjusted diluted EPS was $2.79, a 3-per-cent increase from $2.70 last year.
- Operating ratio was 69.3 per cent, an increase of 180 basis points compared with last year's operating ratio of 67.5 per cent.
"I thank our customers and stakeholders for working with and supporting CP over the past few months and our 13,000-strong CP family for their tireless dedication," Mr. Creel said. "As we look forward, we remain confident in our ability to deliver record financial and operating results in 2019."
As noted on Jan. 23, 2019, Canadian Pacific expects to grow volumes, as measured in revenue ton miles (RTM), in the mid-single digits and generate double digit adjusted diluted EPS growth in 2019.
Canadian Pacific will discuss its results with the financial community in a conference call beginning at 4:30 p.m. ET (2:30 p.m. MT) today.
Conference call access
Toronto participants dial-in number: 1-647-427-7450
Operator assisted toll-free dial-in number: 1-888-231-8191
Callers should dial in 10 minutes prior to the call.
Webcast
The company encourages you to access the webcast and presentation material in the investors section of the company's website.
A replay of the first quarter conference call will be available by phone through to May 7, 2019, at 416-849-0833 or toll-free 1-855-859-2056, password 8383898.
Access to the webcast and audio file of the presentation will be made available on the company's website.
About Canadian Pacific Railway Ltd.
Canadian Pacific is a transcontinental railway in Canada and the United States with direct links to major ports on the west and east coasts. Canadian Pacific provides North American customers a competitive rail service with access to key markets in every corner of the globe. Canadian Pacific is growing with its customers, offering a suite of freight transportation services, logistics solutions and supply chain expertise.
INTERIM CONSOLIDATED STATEMENTS OF INCOME
(in millions of dollars, except share and per-share data)
For the three months ended March 31,
2019 2018
Revenues
Freight $1,726 $1,625
Non-freight 41 37
Total revenues 1,767 1,662
Operating expenses
Compensation and benefits 406 374
Fuel 209 215
Materials 57 55
Equipment rents 35 33
Depreciation and amortization 160 170
Purchased services and other 357 275
Total operating expenses 1,224 1,122
Operating income 543 540
Less
Other (income) expense (47) 51
Other components of net periodic benefit recovery (97) (96)
Net interest expense 114 115
Income before income tax expense 573 470
Income tax expense 139 122
Net income 434 348
Earnings per share
Basic earnings per share 3.10 2.41
Diluted earnings per share 3.09 2.41
Dividends declared per share 0.6500 0.5625
We seek Safe Harbor.
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