Canadian Pacific reports record Q3 earnings; expenses down, revenue up

CALGARY – Canadian Pacific Railway Ltd (TSX: CP) says it had record earnings, revenue and operating ratio in the third quarter.

The Calgary-based company’s net income was $324 million or $1.84 per diluted share, beating analyst estimates of $1.72 per share.

The profit was up from $224 million or $1.30 per share in the third quarter of 2012.

Canadian Pacific’s revenue rose by six per cent to $1.5 billion, up from $1.45 billion in the third quarter of 2012.

The higher revenue combined with lower expenses resulted in a record low operating ratio for CP, which had lagged its peers by this measure.

The operating ratio fell to 65.9 per cent from 74.1 per cent as CP’s operating expenses declined by six per cent to $1 billion.