CP Reports Solid First-Quarter 2021 Results; Positive Momentum Heading into the Second Quarter

Canadian Pacific Railway Limited announced first-quarter operating results, including revenues of $1.96 billion, an operating ratio (“OR”) of 60.2 percent, adjusted OR of 58.5 percent, diluted earnings per share (“EPS”) of $4.50 and adjusted diluted EPS of $4.48.

“The strong demand environment, particularly across bulk, merchandise and domestic intermodal, coupled with our commitment to the foundations of precision scheduled railroading enabled our success in the first quarter,” said Keith Creel, CP President and Chief Executive Officer. “The CP family demonstrated resiliency through winter and delivered a record March. Our 12,000-strong team continues to deliver, no matter the obstacles, and I am extremely proud of their efforts.”

First-quarter highlights

–Revenues decreased by 4 percent to $1.96 billion from $2.04 billion last year

–Reported diluted EPS was $4.50, a 51 percent increase from $2.98 last year

–Adjusted diluted EPS was $4.48, a 1 percent increase from $4.42 last year

–Reported OR increased by 100 basis points to 60.2 percent from 59.2 percent. The OR in the first quarter of 2021 includes a $33 million expense related to Kansas City Southern acquisition costs

–Adjusted OR, which excludes the acquisition-related charges, improved 70 basis points to 58.5 percent

–Multiple carload, revenue and tonnage records were broken in the first quarter:

–Record tonnage, volumes and revenue in Canadian grain

–Record revenue in automotive

–Record revenue and volumes in domestic intermodal

–March was an all-time record for GTMs and RTMs in any month leading to a volume record for Q1

“The momentum we ended the first quarter with has enabled a strong start to the second quarter and we remain committed to delivering for our customers, employees, shareholders and communities,” Creel said. “We are excited about the unique opportunities ahead in 2021 and the strong base demand environment.”

Full-year 2021 guidance (1)

–Double-digit adjusted diluted EPS growth relative to 2020’s adjusted diluted EPS of $17.67

–High-single digit volume growth, as measured in RTMs

–Capital expenditures of $1.55 billion

CP’s guidance is based on the following key assumptions:

–Effective tax rate of 24.6 percent

–Other components of net periodic benefit recovery will increase by approximately $40 million versus 2020

(1)CP’s 2021 guidance does not include any potential impacts from the proposed Kansas City Southern acquisition

For the full press release, click here.

About Canadian Pacific

Canadian Pacific is a transcontinental railway in Canada and the United States with direct links to major ports on the west and east coasts. CP provides North American customers a competitive rail service with access to key markets in every corner of the globe. CP is growing with its customers, offering a suite of freight transportation services, logistics solutions and supply chain expertise. Visit cpr.ca to see the rail advantages of CP.

Source: Canadian Pacific Railway Limited