Canadian Pacific Kansas City yesterday reported first-quarter 2023 revenue rose 23% to CA$2.27 billion, operating income climbed 55% to CA$829 million and diluted earnings per share increased 37% to 86 cents compared with the same period in 2022.
The company’s adjusted operating income was CA$841 million, up 52%, and core adjusted diluted EPS was 90 cents, up 34% compared with Q1 2022 results.
CPKC logged an adjusted operating ratio of 62.9% for the quarter, down from 69.8% a year ago.
Q1 2023 was the last quarter before the company officially combined with Kansas City Southern on April 14.
“In our final quarter before our historic combination, the CP team delivered solid results driven by our investment in capacity, service and continued focus on safety,” said CPKC President and CEO Keith Creel in a press release. “Our strong bulk franchise, fueled by a robust Canadian grain harvest, plus competitive service offerings in intermodal helped produce these results providing momentum as we begin our journey as CPKC.”
As measured in revenue ton-miles, volume climbed 11% in the quarter.
“Since we first announced our intention to combine CP and KCS more than two years ago, we never lost our conviction that a CP-KCS combination is right for our railroaders, our customers, our stakeholders and the North American economy,” said Creel.