Repeating a line from the previous earnings call, chief financial officer
“The upcoming grain harvest is looking better every day," CEO
In the three months ended
Net income at the Calgary-based railroad operator dropped 39 per cent year over year, but largely due to anomalously high profits a year ago caused by a one-time merger termination fee of
Velani cited rising fuel prices and "the continued headwind from grain" as hurdles, partly offset by a 25 per cent increase in container shipping revenues and an earnings bump from several commodities.
Spiking demand for potash, metals and automotive products amid still-snarled supply chains pushed up those revenue streams between 22 per cent and 28 per cent year over year — even as potash volumes nudged up less than three per cent and auto carloads stayed flat.
Outpacing them all however were fuel expenses, which jumped 70 per cent or
In his buoyant view of the coming five months, Creel pointed to forecasts for a Canadian grain crop of 70 million tonnes, roughly in line with historical averages.
The 141-year-old CP Rail also expects double-digit growth in revenue ton miles — a key metric measuring how much revenue a company makes per volume of freight hauled — for the back half of the year, he said.
"With the ongoing disruptions in potash supply from
Regulatory scrutiny of the railway's proposed acquisition of the
The
"We're in a good spot. We continue to gain ground and look forward to realizing the vision of that transformational merger as we march toward the first part of 2023," Creel said.
Earlier this month, several large railways, community groups and shippers filed submissions with the
But
On Thursday, the company reported net income of
On an adjusted basis, CP's diluted earnings per share fell to
Revenue was
On Wednesday night, the company announced its quarterly dividend would be
This report by
Companies in this story: (TSX:CP, TSX:CNR)
Note to readers: This is a corrected story. A previous version misstated the release date of CP's earnings.
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