April 24, 2015

Record first quarter for Canadian Pacific

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Record first quarter for Canadian Pacific Stephen C Host

CANADIAN Pacific Railway (CP) announced its results for the first three months of 2015 on April 21, revealing the railway achieved its lowest-ever first quarter operating ratio and highest-ever net income for the period.

Revenues climbed 10% year-on-year to a record $C 1.67bn ($US 1.37bn) with net income rising to $C 320m or $C 1.92 per diluted share, an increase of 33%. Operating ratio fell to 63.2%.

In an interview on April 21, CP CEO Mr Hunter Harrison attacked the financial performance of other North American Class 1 freight railways, arguing that shareholder activism is "long overdue."

"Who's the advocate for the shareholder?" he asks. "If I was the shareholder, I wouldn't tolerate some of it."

Harrison was installed at the helm of CP in June 2012 following a proxy campaign by activist shareholder Mr Bill Ackman and his New-York-based hedge fund Pershing Square Capital Management.


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