Canadian Pacific Railway Limited (CP) has reported a 7.43 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $347 million, or $2.34 a share in the quarter, compared with $323 million, or $2.04 a share for the same period last year.
Revenue during the quarter dropped 9.07 percent to $1,554 million from $1,709 million in the previous year period. Total expenses were 57.72 percent of quarterly revenues, up from 55.94 percent for the same period last year. That has resulted in a contraction of 178 basis points in operating margin to 42.28 percent.
Operating income for the quarter was $657 million, compared with $753 million in the previous year period.
“Despite decreased revenues, tied to a delayed grain harvest and stiff economic headwinds, our business model continues to perform on the cost side,” said E. Hunter Harrison, CP's chief executive officer. "Our commitment to efficiency, asset optimization, and operational excellence has produced yet another record-low operating ratio.”
Operating cash flow drops significantly
Canadian Pacific Railway Limited has generated cash of $1,321 million from operating activities during the nine month period, down 28.05 percent or $515 million, when compared with the last year period.
The company has spent $817 million cash to meet investing activities during the nine month period as against cash outgo of $708 million in the last year period. It has incurred net capital expenditure of $815 million on net basis during the nine month period, up 14.31 percent or $102 million from year ago period.
The company has spent $1,035 million cash to carry out financing activities during the nine month period as against cash outgo of $716 million in the last year period.
Cash and cash equivalents stood at $103 million as on Sep. 30, 2016, down 84.42 percent or $558 million from $661 million on Sep. 30, 2015.
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