Canadian Pacific third-quarter profit down from a year ago

CALGARY— Canadian Pacific Railway Ltd. says it earned $598 million in its latest quarter, down from $618 million in the same quarter last year.

The railway said Tuesday the profit amounted to $4.41 per diluted share for the quarter ended Sept. 30, down from $4.46 per diluted share a year ago.

Revenue for the company’s third quarter totalled $1.86 billion, down from $1.98 billion in its third quarter last year.

Chief executive Keith Creel said the quarter played out as expected. “Following our record Q2 performance, we steadily built momentum through the quarter and finished strong,” Creel said.

CP’s operating ratio, an industry metric where a lower ratio means more efficient operations, was 58.2 per cent, up from 56.1 per cent a year ago.

On an adjusted basis, the railway says its $4.12 per diluted share for the quarter compared with an adjusted profit of $4.61 per diluted share a year ago. Analysts on average had expected an adjusted profit of $4.23 per diluted share and revenue of $1.87 billion, according to financial data firm Refinitiv.

In its outlook, CP Rail says it expects a low-single-digit decline in revenue ton-miles in 2020 and at least mid-singledigit adjusted diluted earnings per share growth.

“With Q4 volumes up eight per cent quarter to date and a strong outlook for the remainder of the year, we have raised our guidance,” Creel said. “Given the strength of our operating model and growing momentum across our business, I remain confident that the best is yet to come.”

The railway said it continues to expect capital expenditures of $1.6 billion this year.