CP quarterly profit up 0.5pc to US$403.7 million as sales rise 6pc
THE Canadian Pacific Railway (CP) increased first quarter operating profit 0
THE Canadian Pacific Railway (CP) increased first quarter operating profit 0.5 per cent year on year to C$543 million (US$403.7 million), drawn on revenues of C$1.77 billion, up six per cent.
'This past winter was one of the most challenging in my railroading career,' said CP president and CEO Keith Creel.
'As we look forward, we remain confident in our ability to deliver record financial and operating results in 2019,' he said.
Legal proceedings related to the Lac-Megantic train wreck, that killed 42 and destroyed much of the town east of Montreal in July, 2013 are not expected to have a material adverse effect on the company's financial position or results of operations, the company said.
'The derailment occurred on a section of railway owned and operated by the MMA Group. The previous day, CP had interchanged the train to the MMA Group, and after the interchange, the MMA Group exclusively controlled the train,' said the company.
With its 2019 plan to built on sustainable, profitable, growth along with further productivity improvement, CP expects mid-single digit revenue ton mile (RTM) growth and double-digit adjusted diluted EPS growth.
CP's outlook assumes a US-to-Canadian dollar exchange rate of C$1.30, an effective tax rate of 25.5 to 26 per cent, and no material land sales. CP estimates other components of net periodic benefit recovery to increase by C$9 million versus 2018.