Calgary Alberta - Canadian Pacific Railway Limited (CP) today announced third-quarter revenues of $1.86 billion, diluted earnings per share (EPS) of $4.41, adjusted diluted EPS of $4.12, and an operating ratio of 58.2 percent.
 
Third-Quarter Highlights

• Strong operational performance in average train weights and average train lengths;
   
  
• Revenues decreased by 6 percent to $1.86 billion from $1.98 billion last year;
   
  
• Reported diluted EPS of $4.41, a 1 percent decrease from $4.46 last year, and adjusted diluted EPS of $4.12, an 11 percent decrease from $4.61 last year;
   
  
• Operating ratio was 58.2 percent, a 210 basis point increase over last year's third-quarter operating ratio of 56.1 percent;
   
  
• Federal Railroad Administration (FRA) reportable personal injuries declined 26 percent to 1.06 from 1.44 in Q3 2019, and CP's FRA reportable train accident frequency dropped 14 percent versus Q3 2019 to 1.13 from 1.311.

Updated Outlook
 
CP expects a low single digit decline in revenue ton miles in 2020 and at least mid single digit adjusted diluted EPS growth.
 
CP continues to expect capital expenditures of $1.6 billion in 2020.
 
CP's revised guidance assumes a full year Canadian to U.S. dollar exchange rate of 1.35, other components of net periodic benefit recovery to decrease by approximately $40 million versus 2019 and an effective tax rate of approximately 24.8 percent as a result of the accelerated reduction of the Alberta corporate tax rate as compared to 25.0 percent previously.
 
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