CP Rail second-quarter profit hurt by disruptions related to labour strife
Calgary-based railway earned $436M, compared with $480M a year earlier
Canadian Pacific Railway Ltd. says service interruptions related to labour negotiations and strike notices caused its net income to decrease 10 per cent in the second quarter despite higher revenues.
The Calgary-based railway earned $436 million, compared with $480 million a year earlier.
That translated into $3.04 per diluted share for the period ended June 30, down from $3.27 per share in the second quarter of 2017.
Excluding one-time items, adjusted earnings rose to $453 million or $3.16 per diluted share, from $407 million or $2.77 per share a year earlier.
Revenues grew 6.5 per cent to $1.75 billion from $1.64 billion.
The railway's operating ratio, which measures its efficiency, worsened and rose to 64.2 per cent from 62.8 per cent.
CP Rail says its revenue ton-miles increased four per cent and its carloads two per cent.
The railway was expected to earn $3.12 per diluted share in adjusted earnings on $1.73 billion of revenues, according to analysts polled by Thomson Reuters Eikon.