CP Railway profits lower with flooding
Calgary-based Canadian Pacific Railway reports lower second-quarter results, blaming shipping disruptions caused by this spring's flooding.
The firm Wednesday reported net income fell to $128 million, or 75 cents a share, two cents above analyst expectations, according to a poll by Thomson Reuters.
That was lower than profits a year earlier of $166.6 million or 98 cents a share.
Revenue increased slightly to $1.26 billion, in line with analyst expectations and up from $1.23 billion, but the improvement was limited by the impact of flooding on operations.
The railway said it had nearly 90 separate outages on its tracks during the three-month period ended June 30.
"We rerouted and detoured traffic over other railways and incurred significantly higher operating costs to ensure delivery of our customers' shipments," said president and CEO Fred Green in a release. "Repairs are now complete and service levels are returning to normal."
The company saw operating expenses rise to $1.03 billion from $960.1 million a year earlier. Average fuel prices rose 37 per cent to $3.50 US per gallon.
Railways are often considered a bellwether for the state of the general economy. For instance, if fewer homes are being built, fewer carloads of lumber will be shipped.
With files from The Canadian Press