Canadian Pacific Railway Limited (CP) has reported a 20.38 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $384 million, or $2.61 a share in the quarter, compared with $319 million, or $2.08 a share for the same period last year. Revenue during the quarter went down marginally by 2.96 percent to $1,637 million from $1,687 million in the previous year period. Total expenses were 56.20 percent of quarterly revenues, down from 59.87 percent for the same period last year. This has led to an improvement of 367 basis points in operating margin to 43.80 percent.
Operating income for the quarter was $717 million, compared with $677 million in the previous year period.
"While the fourth quarter was weighed down by challenging operating conditions, including unexpected and extreme weather on the West Coast that compounded the impact of an already delayed grain harvest, it once again highlighted our resiliency and ability to operate efficiently under tough conditions,” said E. Hunter Harrison, CP's chief executive officer. “I am particularly proud of our people who worked tirelessly over the last three months of 2016 to deliver for our customers in a safe and efficient manner.”
Operating cash flow declines
Canadian Pacific Railway Limited has generated cash of $2,089 million from operating activities during the year, down 15.05 percent or $370 million, when compared with the last year. The company has spent $1,069 million cash to meet investing activities during the year as against cash outgo of $1,123 million in the last year. It has incurred net capital expenditure of $1,066 million on net basis during the year, down 5.41 percent or $61 million from year ago.
The company has spent $1,493 million cash to carry out financing activities during the year as against cash outgo of $957 million in the last year period.
Cash and cash equivalents stood at $0.16 million as on Dec. 31, 2016, down 74.77 percent or $0.49 million from $0.65 million on Dec. 31, 2015.
Debt comes down marginally
Canadian Pacific Railway Limited has recorded a decline in total debt over the last one year. It stood at $8.68 million as on Dec. 31, 2016, down 3.05 percent or $0.27 million from $8.96 million on Dec. 31, 2015. Interest coverage ratio improved to 6.18 for the quarter from 5.55 for the same period last year.
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