Canadian Pacific Railway profits and revenue highest in its history, but still misses expectations
Company says it remains optimistic as economy braces for headwinds
CALGARY—Canadian Pacific Railway says its fourth-quarter and 2015 adjusted profit was the highest in its history, which dates to the 19th century when Canada was a new country.
The Calgary-based company had $2.08 per share of diluted earnings and an adjusted profit of $2.72 per share, the highest ever for CP’s fourth quarter.
For the full year ended Dec. 31, CP’s adjusted earnings were a record $10.10 per share, up 19 per cent from 2014.
Canadian Pacific also had record high revenue in 2015—$6.71 billion for the full year—although fourth-quarter revenue fell to $1.687 billion from $1.76 billion in the fourth quarter of 2014.
The company’s key measure of operating efficiency was 59.8 per cent in the fourth quarter, matching the record, while the 2015 full-year operating ratio was the best on record of 60 per cent, or 61 per cent on an adjusted basis.
The company expects to continue to improve its operating ratio and adjusted earnings in 2016, despite general economic uncertainty that could affect some types of freight that CP carries through its North American rail network.
“While the North American economy braces itself for more headwinds, we remain optimistic about the future and CP’s continued growth,” said CEO Hunter Harrison in a statement.
He said CP would focus on what it can control—“lowering costs, creating efficiencies and improving service.”