July 18, 2014

CP announces 47% increase in second quarter net income

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CANADIAN Pacific Railway (CP) has reported net income of $C 371m ($US 344m) for the second quarter of 2014, a 47% increase on the $C 252m net income recorded for the second quarter of 2013.

Total revenue for the second quarter increased by 12% to $C1.68bn, while operating costs rose by only 2% to $C 1.09bn. Second quarter operating income was up by 40% compared with the same period in 2013 to reach $C 587m. CP recorded an operating ratio of 65.1% for the second quarter which it says is a 680 basis point improvement over the second quarter of 2013.

"CP delivered another record quarter," says CP's CEO, Mr Hunter Harrison. "The team has made great strides in my two years at CP and they continue to demonstrate resiliency by delivering these results despite continued operational challenges in the US Midwest after a devastating winter. The future is very promising for the railroad as we transition towards leveraging our lower cost structure and improved service."

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