Canadian Pacific Railway Ltd. says freight sales drove a 17 per cent leap in revenues to $1.96 billion in the fourth quarter, fuelled by oil, grain and other commodities.
Net income for the country’s second-biggest rail company plunged 45 per cent to $545 million in the three months ended Dec. 31 compared to the same period in 2017.
Year-over-year diluted earnings per share dropped to $3.84 from $6.77, falling below analyst expectations of $4.22.
READ MORE: Canadian railways ration space as congestion problems worsen
Quarterly revenues for energy, chemicals and plastics jumped 49 per cent to $369 million amid surging demand from Asian markets. Grain revenues, which have broken company records recently, rose seven per cent to $453 million, while coal leaped 22 per cent to $187 million
The Calgary-based company’s fuel costs for the quarter rose 25 per cent year-over-year to $247 million.
READ MORE: Record amount of Canadian oil exported by rail raises safety concerns
The operating ratio, a key industry metric, improved by 370 basis points to more than 56 per cent.
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