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CP Reports Q4 Revenue Down

Revenues decreased 3% to $2.01B, from $2.07B in Q4 2019

Photo: Canadian Pacific Railroad
Photo: Canadian Pacific Railroad

Canadian Pacific Railway announced its fourth-quarter results, including revenues of $2.01 billion, a record-low operating ratio (OR) of 53.9%, diluted earnings per share (EPS) of $5.95 and record adjusted diluted EPS of $5.06.

Fourth-quarter 2020 highlights

  • Revenues decreased 3% to $2.01 billion, from $2.07 billion in Q4 2019
  • OR improved by 310 basis points (bps) to 53.9%
  • Diluted EPS improved 23% to $5.95, from $4.82 in Q4 2019, while adjusted diluted EPS rose 6% to record $5.06, from $4.77 in Q4 2019

“With a foundation of strong operational performance and a commitment to controlling what we can, the team continues to deliver,” says Keith Creel, CP president and CEO. “Despite the continued COVID-19 impacts, volumes steadily improved over the second half of 2020 and we saw revenue ton mile (RTM) growth in the fourth quarter.”

Full-year 2020 highlights

  • Federal Railroad Administration ("FRA")-reportable personal injuries declined 22% to a record-low 1.11 from 1.42 in 2019, and CP’s FRA-reportable train accident frequency decreased 9% versus 2019 to a record-low 0.96 from 1.06
  • Revenues decreased 1% to $7.71 billion, from $7.79 billion in 2019
  • OR improved to a record-low 57.1%, a 280 bps improvement year over year
  • Diluted EPS increased 3% to a record $17.97 from $17.52, while adjusted diluted EPS rose 7.5% to a record $17.67, from $16.44 in 2019

“I’m proud to say that our 2020 full-year results, including from a safety perspective, exceeded our expectations, in what has been one of the most challenging years any of us have faced,” says Creel. “I’m continually impressed by the resiliency of the CP family, particularly those who provide an essential service to North Americans day in and day out, no matter the challenges. The 12,000-strong CP family responded to extraordinary circumstances in 2020 with grit and courage, ensuring that our railway was able to serve our customers, shareholders and communities.”

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