The Globe and Mail reports in its Wednesday edition that
Canadian Pacific Railway posted a 13-per-cent jump in second quarter revenue to $1.98-billion as the railway operator moved more oil, grain and other commodities.
The Globe's Eric Atkins writes that CP said profit for the three months ending June 30 rose to $724-million or $5.17 a share. That compared with $436-million or $3.04 in the second quarter of 2018. CP's operating ratio improved to 58.4 per cent from 64.2 per cent in the year-ago period.
Before Tuesday, CP shares had risen by 27 per cent in 2019, outpacing the 15-per-cent gain on the TSX and the 21-per-cent increase in the share price of rival Canadian National Railway.
Citigroup analyst Christian Wetherbee said CP's financial performance was better than he expected, as yields improved amid cost containment. "Expectations were elevated coming into the quarter, but the results were solid and CP stands out as likely the only Class 1 railway [that] can credibly maintain its volume target." He continues to CP "buy."
CP saw eight of nine freight categories rise in volumes, led by energy, chemicals and plastics (up 22 per cent); potash (up 15 per cent); and automotive products (up 12 per cent).
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