CP posts record profit, operating ratio in 1Q 2015

Canadian Pacific announced record first-quarter net income and revenue, and its lowest first-quarter operating ratio in the company's history.

Net income for first-quarter 2015 rose 33 percent to $320 million (in Canadian dollars), or $1.92 per diluted share, compared with $254 million, or $1.44 per diluted share in the year-ago period. Adjusted earnings per share grew 59 percent to $2.26.

The Class I's operating ratio fell to a first-quarter record of 63.2, an 8.8-point improvement, company officials said in a press release.

Revenue rose 10 percent to a first-quarter record of $1.67 billion compared with the same period a year ago.

"CP's success in the first quarter of the year is the result of hard work by its people and a business model that responds nimbly to any shift in economic conditions," said Chief Executive Officer E. Hunter Harrison. "CP's relentless focus on rail safety and cost control has created a solid foundation for growth, innovation and creative collaboration with customers."

The company's business diversity and the efficiency of its network and team has positioned the company well for the remainder of the year, he added.

"Amid persistent uncertainty in the pace of the North American economic recovery, CP continues to demonstrate the ability to recognize and capitalize on new business opportunities and operational efficiencies," Harrison said.