🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

UPDATE 1-Canadian Pacific's profit misses estimates; new CEO named

Published 2017-01-18, 04:59 p/m
© Reuters.  UPDATE 1-Canadian Pacific's profit misses estimates; new CEO named
CP
-

(Adds Q4 and CEO appointment details)

Jan 18 (Reuters) - Canadian Pacific Railway Ltd CP.TO CP.N , Canada's No. 2 railroad operator, reported a lower-than-expected adjusted quarterly profit, and named Chief Operating Officer Keith Creel as its chief executive, effective Jan. 31.

Creel will replace Hunter Harrison, who is retiring earlier than expected.

In April, a company spokesman said Harrison planned to serve out his contract that ends in June 2017. Calgary-based company reported a 20.4 percent jump in net income to C$384 million ($290 million), or C$2.61 per share, in the fourth quarter ended Dec. 31, from C$319 million, or C$2.08 per share, a year earlier. certain items, the company earned $3.04 per share, missing the average analyst estimate of $3.11, according to Thomson Reuters I/B/E/S.

The company said its operating ratio, a key metric, dropped to 56.2 percent from 59.8 percent a year earlier.

The lower the ratio, which measures operating costs as a percentage of revenue, the more efficient the railroad.

CP also said that it expects 2017 adjusted diluted profit in high single digits and plans to invest about $1.25 billion in capital programs in 2017, an increase of 6 percent over $1.18 billion spent in 2016.

Revenue fell about 3 percent to C$1.6 billion. Analysts on average had expected $1.65 billion. ($1 = C$1.33)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.