The Globe and Mail reports in its Friday, July 28, edition that Canadian Pacific Kansas City posted its first financial results as a combined railway on Thursday, with revenues of $3.2-billion and profit of $1.3-billion. The Globe's Eric Atkins writes that CPKC, however, signalled that its increased heft is no bulwark against economic uncertainty. Chief executive officer Keith Creel is sticking with an earlier forecast for mid-single-digit growth in profit, despite a "challenging quarter" amid softer demand and wider economic uncertainty. He says, "This is about the long game, it's not about the first quarter of a new company." Declining shipments of grain, potash and crude oil helped reduce CPKC's revenues in the second quarter by 2 per cent, measured on a combined basis, from the year-ago quarter. The adjusted per-share profit of 83 cents fell short of analyst expectations. A 13-day port strike in B.C. has ended but its impact is still rippling through the economy. Chief marketing officer John Brooks says the port strike cost CPKC $80-million in revenue, much of which he hopes to claw back in the coming quarters. Mr. Creel says, "We're just 105 days old but I'm extremely proud of the combination so far."
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