CP posts Q3 record revenue, operating ratio; ratifies pact with BLET

Canadian Pacific Railway Ltd. announced today it earned its highest-ever revenue for a third quarter, 16 percent growth in adjusted earnings per share and the lowest operating ratio for the period in CP's history.

Third-quarter revenue rose 2 percent to $1.71 billion (in Canadian dollars) compared with the same period a  year ago, while the adjusted operating ratio fell to a third-quarter record 59.9 percent, company officials said in a press release.

"I am proud of the CP team's execution this quarter amid stubborn economic softness and the lowest commodity prices in more than a decade," said Chief Executive Officer E. Hunter Harrison. "It's clear that despite the ongoing tough economic environment, our continued focus on service, cost control and incremental investment in the franchise will serve customers and shareholders well in the long run."

Adjusted operating income for the quarter climbed 10 percent to $685 million, and adjusted earnings per share advanced 16 percent to $2.69, according to the press release.

Net income for the third quarter fell to $323 million, or $2.04 per diluted share,  from $248.4 million, or $2.31 per diluted share, a year ago.

Meanwhile, the company also announced it has ratified a multi-year collective agreement with its 450 U.S. engineers represented by the Brotherhood of Locomotive Engineers and Trainmen (BLET). The new agreement ends a mileage-based wage system, according to a CP news release.

The pact spans three years with an option for either side to revert to the former agreement if written notice is given prior to the beginning of the third year. If neither party reverts, the agreement is extended for two additional years. The agreement also gives BLET members the ability to participate in the employee share purchase plan.

"This negotiated agreement is a major step forward for both parties and represents the biggest win-win that a railway, its employees and operating unions could have," said CP President and Chief Operating Officer Keith Creel. "The benefits it will provide to all parties, including — at the center of it all — our customers, are immediate and will build month by month and year by year."