Signage is pictured at a Canadian Pacific Kansas City (CPKC) rail yard in Smiths Falls, Ont., on Thursday, Aug. 22, 2024. THE CANADIAN PRESS/Sean Kilpatrick
January 29, 2025 - 2:09 PM
MONTREAL - Canadian Pacific Kansas City Ltd. on Wednesday reported a jump in profits in its latest quarter amid higher revenue from grain and auto shipments, even as container cargo slumped.
The country's second biggest railway said its net income rose 18 per cent to $1.20 billion in the three months ended Dec. 31 from $1.02 billion in the same period a year earlier.
Grain revenues rose 12 per cent year-over-year and revenue from energy, chemicals and plastics increased three per cent, the Calgary-based company said. The two segments comprised 44 per cent of CPKC's freight revenues.
Revenue from container shipments fell six per cent due to weaker consumer demand amid the hangover from inflation and higher interest rates.
"Our team finished our first full year as a combined company strong, with volume growth, improved safety performance and solid operational execution that allowed CPKC to deliver industry-leading earnings growth in 2024," said chief executive Keith Creel in a release.
The company's efficiencies — profits rose far more than revenues — stemmed partly from Canadian Pacific's takeover of Kansas City Southern in December 2021. The acquisition marked North America's first major rail merger in decades, but operations merged only in April of 2023 following regulatory approval of the deal.
Due largely to CPKC's continent-wide network — none of North America's five other major railways span all three countries — sales from automotive shipments soared by 38 per cent year-over-year, topping company records, the company said.
CPKC's said fourth-quarter revenues rose three per cent to $3.87 billion from $3.78 billion the year before.
Diluted earnings increased to $1.28 per share from $1.10 per share, beating analysts' expectations.
Earlier Wednesday, the board declared a quarterly dividend of 19 cents per share payable on April 28.
This report by The Canadian Press was first published Jan. 29, 2025.
Companies in this story: (TSX:CP)
News from © The Canadian Press, 2025