CP Reports 3Q Net Income of C$324 Million, Up From C$224 Million in 3Q 2012
Date Posted: October 24, 2013
Canadian Pacific Railway Limited (TSX: CP) (NYSE: CP) announced Oct. 23 record quarterly earnings and its lowest operating ratio in company history.
Adjusted EPS of $1.88 grew 45 per cent over third-quarter 2012, while third-quarter operating ratio was 65.9 per cent, an 820 basis point improvement over third-quarter 2012.
"By all standards, this was an outstanding quarter," said E. Hunter Harrison, Chief Executive Officer.
"The company's focus on service execution while controlling costs is a testament to our team of dedicated, hardworking railroaders."
"What we have proven this quarter is the ability to drive earnings growth and lower our operating ratio, even in a softer volume environment. That's the power of the CP plan," added Harrison.
THIRD-QUARTER 2013 HIGHLIGHTS:
Total revenues were $1.5 billion; an increase of 6 per cent and an all-time quarterly record
Operating expenses were $1 billion; a decrease of 6 per cent Reported net income in the third quarter was $324 million; an increase of 45 per cent
Adjusted net income, excluding a significant tax item of $7 million, was $331 million; an increase of 48 per cent
Free cash totaled $318 million for the first nine months of 2013, compared with free cash of $21 million in the comparable period of 2012
"We enter the fourth quarter with momentum and are well positioned for what I believe will be a record 2013," said Harrison.
"CP’s transformational journey is clearly ahead of plan, yet far from complete; we will continue to make this franchise stronger, creating even more value for customers and shareholders.”
CP also announced today that its chief financial officer, Brian Grassby will be retiring from the company, however will remain a key part of the senior management team until year-end to lead a successful transition.
A search process is currently underway and it is expected an announcement on a new chief financial officer will be made shortly.
“Brian has played an important role over the past 16 months in CP’s turnaround agenda,” said Harrison.
“On behalf of all our employees and the board, I’d like to thank Brian for his 12 years of dedicated service to the railway and wish him well in his retirement.”
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