CALGARY, April 19, 2017 /PRNewswire/ – Canadian Pacific Railway Limited (TSX: CP) (NYSE: CP) today announced first-quarter revenues of C$1.6 billion, up 1 percent from 2016 and reported diluted earnings per share (EPS) of $2.93, or $2.50 on an adjusted diluted EPS basis.
“Thanks to our hard-working employees, industry-leading operating model and commitment to service, we produced solid results this quarter,” said Keith Creel, CP’s President and Chief Executive Officer. “We turned a corner in March and are now seeing positive volumes, which makes us cautiously optimistic that the demand environment is improving.”
Revenues increased 1 percent to $1,603 million from $1,591 million Reported diluted EPS fell 17 percent to $2.93 from $3.51 and adjusted diluted EPS were flat year-over-year at $2.50 Reported operating ratio decreased by 80 basis points to 58.1 percent from 58.9 percent. The operating ratio in the first quarter of 2017 includes a $51-million recovery associated with the early departure of the previous CEO Adjusted operating ratio, which excludes this gain, increased by 240 basis points in the first quarter of 2017 to 61.3 percent.
“CP’s strong focus on developing its bench strength resulted in a seamless leadership transition and a seasoned executive team that is focused on leveraging CP’s proven operating model,” Creel said. “Our talented and engaged workforce together with disciplined cost control gives us a great deal of confidence that we’ll be able to deliver high single-digit adjusted diluted EPS growth in 2017 and create long-term value for shareholders.”
“Given the strength of our foundation, rooted in precision scheduled railroading, we are well positioned to write the next chapter of this story – one that focusses on sustainable, profitable growth,” Creel said.
The company will discuss its results with the financial community in a conference call beginning at: 4:30 p.m. eastern time (2:30 p.m. mountain time) on April 19.
Conference Call Access
Toronto participants dial in number: 1-647-427-7450
Operator assisted toll free dial in number: 1-888-231-8191
Callers should dial in 10 minutes prior to the call.
We encourage you to access the webcast and presentation material at investor.cpr.ca
A replay of the first-quarter conference call will be available by phone through to May 19, 2017 at 416-849-0833 or toll free 1-855-859-2056, password 98409081.
Access to the webcast and audio file of the presentation will be made available at investor.cpr.ca
For further information regarding non-GAAP measures, including reconciliations to the nearest GAAP measures, see the attached supplementary schedule Non-GAAP Measures.
Note on forward-looking information
This news release contains certain forward-looking information within the meaning of applicable securities laws relating, but not limited, to our operations, priorities and plans, anticipated financial performance, including our 2017 full-year guidance, business prospects, planned capital expenditures, programs and strategies. This forward-looking information also includes, but is not limited to, statements concerning expectations, beliefs, plans, goals, objectives, assumptions and statements about possible future events, conditions, and results of operations or performance. Forward-looking information may contain statements with words or headings such as “financial expectations”, “key assumptions”, “anticipate”, “believe”, “expect”, “plan”, “will”, “outlook”, “should” or similar words suggesting future outcomes. To the extent that CP has provided guidance using non-GAAP financial measures, the Company may not be able to provide a reconciliation to a GAAP measure, due to unknown variables and uncertainty related to future results.
Undue reliance should not be placed on forward-looking information as actual results may differ materially from the forward-looking information. Forward-looking information is not a guarantee of future performance. By its nature, CP’s forward-looking information involves numerous assumptions, inherent risks and uncertainties that could cause actual results to differ materially from the forward looking information, including but not limited to the following factors: changes in business strategies; general North American and global economic, credit and business conditions; risks in agricultural production such as weather conditions and insect populations; the availability and price of energy commodities; the effects of competition and pricing pressures; industry capacity; shifts in market demand; changes in commodity prices; uncertainty surrounding timing and volumes of commodities being shipped via CP; inflation; changes in laws and regulations, including regulation of rates; changes in taxes and tax rates; potential increases in maintenance and operating costs; uncertainties of investigations, proceedings or other types of claims and litigation; labour disputes; risks and liabilities arising from derailments; transportation of dangerous goods; timing of completion of capital and maintenance projects; currency and interest rate fluctuations; effects of changes in market conditions and discount rates on the financial position of pension plans and investments;