Canadian Pacific reports revenue increase of 11.6%

CP Kansas

Canadian Pacific has reported total revenues of C$*7.31bn for the year ended December 31, 2018. This is an increase of 11.6% on 2017’s revenue.

Operating income increased to C$2.8bn from C$2.5bn in 2017, growth of 12.4%. Canadian Pacific reported the increase was primarily due to higher volumes and the efficiencies generated from improved operating performance and asset utilisation. Although it was partially offset by cost inflation amongst other factors.

However, net income decreased by -18.8% to C$1.9bn from C$2.45bn. Canadian Pacific attributed this decrease to lower income tax recoveries from tax rate changes in 2018 compared to 2017 and the unfavourable impact of the change in FX translation on US dollar-denominated debt. This decrease was somewhat offset by higher operating income.

In 2018, the company generated freight revenues totalling C$7.1bn, a 12% increase on 2017. The three major business lines that make up the total freight revenues; bulk, merchandise and intermodal. The segments contributed 41%, 37% and 22% respectively.

Non-freight revenues decreased by 15% to C$164m. Non-freight revenues accounted for approximately 2% of its total revenues in 2018. Non-freight revenues are generated from leasing certain assets and other arrangements including logistical services.

Source: Canadian Pacific

*$1=C$1.32 €1=C$1.49