Canadian Pacific Railway quarterly profit down 20pc to US$101 million

CALGARY-based Canadian Pacific Railway has posted a 20 per cent year-on-year decline in second quarter profit to C$103 million (US$101 million), drawn on revenues of $1.4 billion, increasing $101 million.

The profit shortfall was attributed to a "management transition" that ended in a boardroom proxy battle and resulting advisory costs as well as a corporate income tax rate change and a nine-day strike.

But first half net profit was up 51 per cent to $245 million, an increase of $83 million, or 51 per cent year on year. These gains were due to rising volumes and improved operating performance, the company said.

Said CP's new president and CEO Hunter Harrison: "I look forward to working with a solid team of dedicated railroaders to improve CP's service offering and drive long-term shareholder value. Canadian Pacific is a strong franchise with positive market opportunities."