For the remainder of the year, CP expects volume to decrease somewhat, with flat adjusted diluted earnings per share.

CP’s first quarter 2020 operating revenues increased by 16% to a first quarter record of $C 2.04bn ($US 1.44bn), from $C 1.77bn last year. CP’s operating ratio improved by 1010 basis points to a first-quarter record of 59.2%. Operating income increased by 54% to $C 834m from $C 543m last year.

CP has updated its 2020 outlook as a result of the continuing impacts of the Covid-19 pandemic to its business and the economy. Based on CP’s current view of demand, it now expects revenue tonne-km to be down mid-single digits and adjusted diluted earnings per share to be roughly flat year over year.

In spite of currency headwinds, CP says it continues to expect capital expenditures of $C 1.6bn as the company takes advantage of available track time to better position the network for recovery and support long-term shareholder returns.

Keith Creel, CP's president and CEO.

“These impressive results are due to the efforts of our CP family, the leadership of our talented management team and strict adherence to the foundations of our precision scheduled railroading model,” says CP’s president and CEO Mr Keith Creel. “We have had a tremendous start to 2020. Our operating team is tried and tested, and has shown exemplary leadership during a challenging period, including now managing the Covid-19 crisis.

“The same operating model that produced record results for CP during good times now serves us well during challenging economic times. The company is in a strong position from both a balance sheet and liquidity perspective. As we navigate through this extraordinary period, we remain well-positioned not only to weather this storm, but to recover stronger on the other side.”