Newly merged railway operator Canadian Pacific Kansas City (CP) has reported second-quarter net income of $1.33 billion, up 74% from $765 million a year earlier.
The Calgary-based company said its Q2 earnings per share came in at $1.42 versus $0.82 in the same period of 2022.
Revenues in the April through June period totaled $3.17 billion, up 44% from $2.20 billion a year earlier.
In April, Canadian Pacific finalized its $31 billion U.S. purchase of Kansas City Southern, creating the only railway that covers all of North America – Canada, the U.S. and Mexico.
This was the first earnings report from the combined entities, and the merger is already having a positive financial impact.
However, the company said its future Q3 results are likely to be negatively impacted by the recent strike at British Columbia seaports.
Canadian Pacific said the B.C. port strike has cost it about $80 million in lost revenue.
During the second quarter of this year, the company said container traffic fell 10% from a year earlier, but that was partially offset by higher volumes of steel as well as automotive products.
Canadian Pacific Kansas City’s stock has gained 10% over the past 12 months to trade at $109.93 a share.
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