Reported diluted earnings per share (EPS) was $C 4.35, up 24% from $C 3.50 the same time last year, and adjusted diluted EPS was a record $C 4.12, a 42% increase from $C 2.90 in Q3 2017. The operating ratio was a 270 basis point improvement from 61.0% in Q3 2017, while operating income was $C 790m, a 27% increase from $C 622m.

The result continues a stark turnaround for CP, which in 2012 had an operating ratio of 81.3%, the worst of the six North American Class 1 railways. In May 2012, former CP president and CEO Mr Fred Green was ousted by hedge fund Pershing Square, which had acquired a 14.2% stake in CP, and Mr Hunter Harrison was appointed to reinvigorate the company with his Precision Scheduled Railroading (PSR) model, achieving a 58.6% operating ratio by the end of 2016.

“This quarter really showed what our operating model and our 13,000-strong family of CP railroaders can do,” says CP president and CEO, Mr Keith Creel. “It was a record by almost every measure and sets us up well for the remainder of the year and beyond. Our continued success comes from a commitment at every level of the organisation to deliver on the principles of PSR for our customers, our shareholders and the broader North American economy.

“As noted at our recent investor day, we have a compelling, fact-based story rooted in our foundations. We remain disciplined in our approach and are seeing continued and sustainable growth across our lines of business. We have the foundational underpinnings, and the room to grow, in the weeks, months and years ahead. We will never lose sight of what got us here.”