CP expects 12 percent decline in 2Q revenue

Canadian Pacific expects second-quarter revenue to decline about 12 percent compared with the same 2015 period, the railroad announced this morning.

The reasons: lower-than-anticipated volumes in bulk commodities such as grain and potash, the "unexpected and devastating wildfires" in northern Alberta and a strengthening Canadian dollar, CP officials said in a press release.

The Class I, which also expects a 2Q operating ratio of about 62, will continue to focus on "controlling costs in a difficult environment," CP Chief Executive Officer E. Hunter Harrison said.

"While we acknowledge the environment remains challenging, additional cost-reduction opportunities and the potential for stronger volumes in the back half of the year still lead us to believe that achieving double-digit EPS growth in 2016 is a possibility," Harrison added.

CP will release its 2Q financial and operating results on July 20.