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Canadian Pacific released its third-quarter financial results this morning and the figures drive home one overriding theme, according to senior executives: Progress is under way.

Total revenue rose 8 percent to $1.5 billion, operating income increased 6 percent to $376 million, net income jumped 20 percent to $224 million and diluted earnings per share climbed 18 percent to $1.30 compared with third-quarter 2011 results (all figures are in Canadian dollars). In addition, volume increased 3 percent to 687,000 units and the operating ratio dropped 1.7 points to 74.1.

"Momentum is building at Canadian Pacific. We have implemented new services, closed terminals and certain yard operations, and we've put a new leadership team in place," said CP President and Chief Executive Officer E. Hunter Harrison in a prepared statement.

In terms of freight revenue by sector, automotive revenue soared 31 percent to $105 million, industrial and consumer products revenue climbed 24 percent to $329 million, coal revenue rose 10 percent to $161 million, intermodal revenue increased 7 percent to $363 million, grain revenue inched up 2 percent to $296 million, sulphur and fertilizers revenue plunged 19 percent to $111 million and forest products revenue declined 4 percent to $49 million.

Operating expenses increased 6 percent to $1.1 billion primarily because of higher compensation and benefits, purchased services and depreciation/amortization costs. Fuel costs fell from $238 million in the year-ago period to $232 million.

"The team has made significant progress on operational improvements, controlling costs and on delivering results. And this is just the beginning," said Harrison.