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Canadian Pacific quarterly profit up 12pc to US$300 million on flat revenues
THE Canadian Pacific Railway (CP) posted a 12 per cent second quarter year-on-year net profit increase - the highest ever - to C$390 million (US$300.8 million), drawn on flat revenues of C$1.65 billion.
The day before CP's main rival, the Canadian National Railway (CN) posted a 4.6 per cent year-on-year second quarter net profit increase to C$886 million (US$681 million) drawn on flat revenues of C$3.1 billion.
"CP remains disciplined during this period of economic uncertainty in identifying opportunities to control costs and improve efficiency to offset near-term headwinds," said CP chief executive Hunter Harrison.
"CP's achievement on the bottom line came even as a sluggish North American recovery and stubborn global economic softness weighed on commodity prices, forcing producers to reduce output and cut shipments," he said.
Second quarter operating income increased 10 per cent year on year to C$646 million.
"The positive CP story is based on a business model that allows for flexibility - we are nimble, efficient and able to respond to the ever-changing economic climate," said Mr Harrison.
The railway that enabled Canadian independence in the 19th century also became largely American in the second quarter with most its board of directors being US citizens or residents, and hence requiring the company to adhere to US Securities and Exchange Commission (SEC) reporting rules for the first time.
"Accordingly, CP plans to follow the regular SEC reporting requirements effective January 1, 2016, file an annual report on Form 10-K for the year ended December 31, 2015 and file regular periodic reports under both Canadian and US law thereafter," said a company statement.
The day before CP's main rival, the Canadian National Railway (CN) posted a 4.6 per cent year-on-year second quarter net profit increase to C$886 million (US$681 million) drawn on flat revenues of C$3.1 billion.
"CP remains disciplined during this period of economic uncertainty in identifying opportunities to control costs and improve efficiency to offset near-term headwinds," said CP chief executive Hunter Harrison.
"CP's achievement on the bottom line came even as a sluggish North American recovery and stubborn global economic softness weighed on commodity prices, forcing producers to reduce output and cut shipments," he said.
Second quarter operating income increased 10 per cent year on year to C$646 million.
"The positive CP story is based on a business model that allows for flexibility - we are nimble, efficient and able to respond to the ever-changing economic climate," said Mr Harrison.
The railway that enabled Canadian independence in the 19th century also became largely American in the second quarter with most its board of directors being US citizens or residents, and hence requiring the company to adhere to US Securities and Exchange Commission (SEC) reporting rules for the first time.
"Accordingly, CP plans to follow the regular SEC reporting requirements effective January 1, 2016, file an annual report on Form 10-K for the year ended December 31, 2015 and file regular periodic reports under both Canadian and US law thereafter," said a company statement.
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