Canadian Pacific Railway (CP) boosted its income from Canadian grain by five per cent in its third quarter ending Sept. 30, on its way to its highest-ever Q3 gross revenue.
Across all its business segments, the Calgary-based railway on Tuesday reported net income of $323 million on $1.709 billion in revenue for the quarter, down from $400 million on $1.67 billion in the year-earlier period.
“I am proud of the CP team’s execution this quarter amid stubborn economic softness and the lowest commodity prices in more than a decade,” CEO Hunter Harrison said in a release.
CP said its total freight revenue rose mainly on the favourable impact in foreign exchange rates, higher grain freight rates and higher potash volumes.
In its Canadian grain segment, the company reported $261 million in freight revenue for the quarter, up five per cent from the year-earlier period. But it handled 72,000 carloads of Canadian grain in the quarter, down five per cent from the previous Q3, for revenue per carload of $3,613, up from $3,264.
CP said its increased Canadian grain revenue was mainly due to the increased freight rates and the favourable impact of the change in foreign exchange rates. While it saw strong export demand for Canadian grain in Q1, its higher freight rates in Q2 and Q3 were offset by lower volumes.
CP’s U.S. grain freight revenue, meanwhile, was up 17 per cent at $148 million, though carloads remained flat at 44,000, for revenue per carload of $3,413, up 19 per cent.
Those increases, CP said, were also due mainly to favourable foreign exchange impacts and increased freight rates, offset in part by lower fuel surcharge revenue and lower export volumes to the Pacific Northwest.
Freight revenue per carload was down three per cent in CP’s potash segment, at $2,816, and up 11 per cent in its fertilizers and sulphur segment, at $4,265. — AGCanada.com Network