Calgary Alberta - Canadian Pacific Railway Limited (CP) today announced third-quarter revenues of $1.9 billion, its highest ever for any quarter, and reported diluted earnings per share (EPS) of $4.35, or $4.12 on an adjusted diluted EPS basis, the highest in the Company's history.
 
The Company also achieved a record-low quarterly operating ratio of 58.3 percent. [1]
 
"This quarter really showed what our operating model and our 13,000 strong family of CP railroaders can do," said Keith Creel, CP President and Chief Executive Officer.
 
"It was a record by almost every measure and sets us up well for the remainder of the year and beyond. Our continued success comes from a commitment at every level of the organization to deliver on the principles of precision scheduled railroading for our customers, our shareholders, and the broader North American economy."
 
THIRD-QUARTER HIGHLIGHTS

• Revenues increased by 19 percent to a record $1.9 billion, from $1.6 billion in Q3 2017, as CP saw revenue growth across all major segments of its book of business;
   
  
• Reported diluted EPS was $4.35, up 24 percent from $3.50, and adjusted diluted EPS was a record $4.12, a 42 percent increase from $2.90;
   
  
• Operating ratio was a record-low 58.3 percent, a 270 basis point improvement from 61.0 percent [1];
   
  
• Operating income was $790 million, a 27 percent increase from $622 million [1].

"As noted at our recent Investor Day, we have a compelling, fact-based story, rooted in our foundations," Creel said.
 
"We remain disciplined in our approach and are seeing continued and sustainable growth across our lines of business. We have the foundational underpinnings, and the room to grow, in the weeks, months, and years ahead. We will never lose sight of what got us here."
 
Due to a record-setting third quarter and a strong outlook for the remainder of the year, CP announced on 4 Oct 2018 that it was raising its 2018 full-year guidance.
 
The Company now expects adjusted diluted EPS for 2018 to grow in excess of 20 percent, increased from earlier guidance of low-double digit growth. [2]
 
CP will discuss its results with the financial community in a conference call beginning today at 16:30 eastern time.
 
[1] 2017 comparative period operating ratio was restated from 56.7 percent to 61.0 percent and operating income was restated from $690 million to $622 million to reflect the adoption of the new accounting standard for the presentation of net periodic benefit recoveries, which is discussed further in Note 2 Accounting changes in CP's Interim Consolidated Financial Statements for the three and nine months ended 30 Sep 2018.
 
[2] CP's expectations for adjusted diluted EPS growth in 2018 are based on adjusted diluted EPS of $11.39 in 2017. CP expects approximately $50 million of gains from land sales in the fourth quarter of 2018.
 
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