Canadian Pacific Railway (CP) saw its revenues and earnings decline in the first quarter as poor grain yields, harsh winter conditions and a work stoppage hampered operations.
CEO Keith Creel said last year’s drought drastically reduced grain volume, while the cold weather in early 2022 and the two -day lockout in March outpaced revenues. which was 6% and 2% revenue compared to the same period last year.
Revenues from grain shipments, often the railroad’s largest source of revenue, have fallen by 20%, placing that category below intermodal.
Net income dropped to $ 590 million for the quarter ended March 31, compared to $ 602 million for the same period in 2021.
Revenue in the first quarter dropped to $ 1.84 billion from $ 1.96 billion last year.
Earnings per share dropped to 63 cents from 90 cents in the first quarter last year. Analysts on average expect a profit of 73 cents per share, according to forecasts compiled by financial data firm Refinitiv.
Source: Radio-Canada
