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10/20/2021
Canadian Pacific today reported third-quarter 2021 revenue rose 4% to CA$1.94 billion and net income fell 21% to CA$472 million compared with the same period a year ago.
The company posted diluted earnings per share (EPS) of 70 cents, down 20%, and adjusted diluted EPS of 88 cents, up 7%.
CP's operating ratio, which includes Kansas City Southern acquisition-related costs, rose 200 basis points to 60.2% from 58.2%. Adjusted OR, which excludes the KCS acquisition-related costs, increased 120 basis points to 59.4% over last year's Q3 operating ratio of 58.2%.
"The third quarter presented challenges across the supply chain, but the CP team's commitment to the foundations of precision scheduled railroading enabled us to respond quickly and effectively to changing environments," said President and CEO Keith Creel in a press release. "We are committed to controlling what we can control, as CP continues to focus on providing service excellence to our customers and driving value for our shareholders."
In an updated outlook, CP now expects low single-digit volume growth in 2021, as measured in revenue ton-miles, compared to 2020. CP remains confident that it will deliver full-year double-digit adjusted diluted EPS growth in 2021, company officials said.
"Despite global supply chain issues and a challenging Canadian grain crop, we remain confident in our ability to deliver full-year double-digit adjusted diluted EPS growth," said Creel. "The underlying demand environment remains strong, and our commitment to generate sustainable, profitable growth will not be distracted by elements outside our control."
Additionally, CP will continue its work preparing to create the first single-line rail network linking the U.S., Mexico and Canada by combining with KCS.
"The transitory issues over the past year have only reinforced the need for enhanced competition and optionality for North American shippers," Creel said. "Our excitement about the opportunities ahead with the combined companies continues to grow."