In a conference call to discuss fourth-quarter financial results, CP's CEO
The ruling, expected sometime this quarter, is the final hurdle CP must clear in its bid to purchase KCS for
In anticipation of a positive ruling and the growth opportunities that will result from the merger, Creel said CP started hiring in large numbers last spring.
"In spite of a historically tight labour market in '22, it was a record year of hiring at CP," Creel said. "We added more than 1,600 conductors over the course of last year, and we made some significant progress with our labour agreements."
During the course of 2022, CP's total workforce swelled to 13,000, an increase of seven per cent year-over-year.
"That was certainly a significant expense in 2022, and it will be a significant expense this year as we prepare for growth," said chief financial officer
"Assuming a positive response from the STB, the synergies that we one day will realize will take some people. So we're hiring a few thousand at a time, and we're spending cap-ex at record levels on our property and KCS on their properties."
CP's deal closed in
Mexican regulators have already given their approval to the deal.
CP has said its acquisition of KCS will enable significant growth for its rail customers, and allow for 60,000 truckloads annually to be shifted off public highways.
In addition to hiring, CP said it has also been working to ensure labour stability in advance of a finalized merger. CP recently announced a new tentative collective agreement with
All of the activity comes against the backdrop of an uncertain economic environment. On Tuesday, CP Rail said it earned
The diluted profit worked out to
Revenues were
CP has declined to issue forward guidance for 2023, given the pending merger decision and the potential for macro-economic headwinds such as a possible recession. The company said instead, it will provide guidance at an investor day later this year.
"We're not going to get too far over our skis and try to predict what that's going to look like," said
During the fourth quarter, CP Rail said its adjusted operating ratio, a key metric of railroad efficiency where a smaller number is better, increased 160 basis points to 59.1 per cent.
For the full year 2022, CP Rail's adjusted operating ratio increased by 380 basis points to 61.4 per cent.
Creel said on the call that the company's operating ratio performance in 2022 was not "CP standard" and that he sees opportunity to improve that figure in the year ahead.
This report by The Canadian Press was first published
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