CALGARY, Alta. — Canadian Pacific Railway (CPR) has reported strong second quarter results, including a 9% increase in operating income over the same period last year and an 8% increase in freight revenue.
Profits, however, declined 32% due to tax adjustments from 2006.
Net income was down to $257 million compared to $378 million in last years second quarter.
“We produced 12% growth in adjusted diluted EPS and posted further improvement in our operating ratio in spite of a 26-day strike and tough weather-related operating conditions,” said Fred Green, president and CEO. “We safely moved record volumes although the challenges of the quarter created inefficiencies that give us opportunities for improvement.”
CP credited its strong revenues to continuing strong global demand for bulk commodities, with double-digit increases in sulfur, fertilizers and coal. Grain revenues surged 9% with industrial and consumer products also showing modest increases. Automotive revenue fell 4% and forest products also declined by 2%.
Like motor carriers, CPR suffered from increasing fuel prices. The railway says its fuel costs spiked 21% in the second quarter.
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