Calgary Alberta - Canadian Pacific Railway Limited (CP) today announced first quarter operating results, including revenues of $2.04 billion, an operating ratio of 59.2 percent, diluted Earnings Per Share (EPS) of $2.98 and adjusted diluted EPS of $4.42.
 
"These impressive Q1 2020 results are due to the efforts of our CP family, the leadership of our talented management team, and strict adherence to the foundations of our precision scheduled railroading model. The entire CP team is proud to deliver for our customers, shareholders, and the broader economy today, and always," said Keith Creel, President and Chief Executive Officer.
 
First Quarter Highlights

• Revenues increased by 16 percent to a Q1 record $2.04 billion, from $1.77 billion last year;
   
  
• Reported diluted EPS was $2.98, a 4 percent decrease from $3.09 last year, and adjusted diluted EPS was $4.42, a 58 percent increase from $2.79 last year;
   
  
• Operating ratio improved by 1,010 basis points to a Q1 record 59.2 percent;
   
  
• Operating income increased by 54 percent to $834 million from $543 million last year.

Updated 2020 outlook
 
As a result of the ongoing impacts of the COVID-19 pandemic to business operations and the broader macro economy, CP has updated its 2020 outlook.
 
Based on CP's current view of the demand environment, the company now expects volume, as measured in revenue ton miles, to be down mid-single digits and adjusted diluted EPS to be roughly flat year over year.
 
In spite of currency headwinds, CP continues to expect capital expenditures of $1.6 billion as the company takes advantage of available track time to better position the network for recovery and support long-term shareholder returns.
 
CP's revised guidance assumes a Canadian-to-U.S. dollar exchange rate of $1.40, other components of net periodic benefit recovery to decrease by approximately $40 million versus 2019, and an effective tax rate of 25 percent.
 
"We have had a tremendous start to 2020. Our operating team is tried and tested, and has shown exemplary leadership during a challenging period, including now managing the COVID-19 crisis. The same operating model that produced record results for CP during good times now serves us well during challenging economic times. The company is in a strong position from both a balance sheet and liquidity perspective, and as we navigate through this extraordinary period, we remain well-positioned, not only to weather this storm, but to recover stronger on the other side. I could not be prouder of the team, particularly those on the operating side who continue to deliver for North Americans," said Creel.
 
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