Despite that, Kreel says that the Class I railroad “remains focused on safely delivering for its customers across this powerful franchise.”
CPKC reported revenues of $3.3 billion in third-quarter 2023; diluted earnings per share (EPS) decreased to $0.84 from $0.96 in 3Q22; and core adjusted combined diluted EPS decreased to $0.92 from $1.01 in 3Q22.
“We are now more than six months into the CPKC story, and I am pleased with the progress we continue to make in unlocking the value of this unrivalled truly North American network,” said Creel.
Among CPKC’s other third-quarter 2023 highlights:
- Reported operating ratio (OR) increased by 540 basis points to 64.9% from 59.5% in 3Q22.
- Core adjusted combined OR2 increased 190 basis points to 61.7% from 59.8% in 3Q22.
- Federal Railroad Administration (FRA)-reportable train accident frequency declined nine percent to 1.30 from 1.43 in 3Q22 on a combined basis.
- FRA-reportable personal injury frequency declined 35% to 0.97 from 1.50 in 3Q22 on a combined basis.
CPKC says it now expects core adjusted combined diluted EPS to be “flat to slightly positive” versus 2022 core adjusted combined diluted EPS of $3.77.
“Economic headwinds and other near-term challenges, including the Port of Vancouver strike, have weighed on volumes more than we anticipated; therefore, we are adjusting our near-term guidance accordingly,” Creel added. “Our enthusiasm for this combination and the long-term value it will produce remains unchanged as we stay focused on executing CPKC’s unique and undeniable growth opportunities.”
DOWNLOAD CPKC’s 3Q23 EARNINGS REVIEW PRESENTATION BELOW:
