Calgary – Canadian Pacific Kansas City (TSX: CP) (NYSE: CP) (CPKC) has unveiled its third-quarter financial performance, reporting total revenues of $3.3 billion, diluted earnings per share (“EPS”) of $0.84, and core adjusted combined diluted EPS1, 2 of $0.92.
Keith Creel, President and CEO of CPKC, expressed his satisfaction with the company’s ongoing journey. He emphasized the remarkable progress made in unlocking the potential of the extensive North American network. Despite challenges stemming from a softer macroeconomic environment and external labor disruptions, the company remains committed to safely delivering for its customers.
CPKC has adjusted its 2023 outlook, now expecting earnings per share to be “flat to slightly positive” on an adjusted basis compared to the previous year. This is a revision from the earlier projection of mid-single-digit growth for the current year.
In the third quarter of 2023, the reported operating ratio (OR) saw a significant increase of 540 basis points, reaching 64.9 percent compared to 59.5 percent in the same quarter of 2022. The core adjusted combined OR2 also increased by 190 basis points, reaching 61.7 percent from 59.8 percent in Q3 2022. However, the reported diluted EPS declined to $0.84, down from $0.96 in Q3 2022.
It is worth noting that the Canadian-Pacific and Kansas City Southern deal, which took place earlier this year, had an impact on these results.
Keith Creel explained that economic headwinds and other near-term challenges, such as the Port of Vancouver strike, had a more substantial impact on volumes than initially anticipated. As a result, the company is making adjustments to its near-term guidance.
Nevertheless, Creel conveyed unwavering enthusiasm for the combination of the two companies and the long-term value it promises to generate. He emphasized that CPKC remains dedicated to capitalizing on its distinctive and substantial growth opportunities.
