Proactiveinvestors Australia Canadian Pacific Railway https://www.proactiveinvestors.com.au Proactiveinvestors Australia Canadian Pacific Railway RSS feed en Tue, 18 Jun 2019 03:41:09 +1000 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Canadian Pacific Railway reports revenue growth of 7% in its second quarter; shares rise ]]> https://www.proactiveinvestors.com.au/companies/news/201090/canadian-pacific-railway-reports-revenue-growth-of-7-in-its-second-quarter-shares-rise-201090.html Canadian Pacific Railway Ltd. (CSE:CN) today reported strong quarterly revenue growth of 7% in its second quarter. 

The company said service interruptions related to labour negotiations and strike notices caused its net income to decrease 10% in the second quarter despite higher revenues.

The Calgary-based railway earned C$436 million, compared with C$480 million a year earlier.

That translated into C$3.04 per share for the period ended June 30, down from C$3.27 per share in the second quarter of 2017.

"Overall, it was a good quarter that sets the franchise up well for the remainder of 2018 and beyond," said Keith Creel, CP president and chief executive officer.

"Our quarterly performance was impacted by service interruptions related to labour negotiations and strike notices. However, we were able to reach tentative long-term agreements with both the Teamsters Canada Rail Conference and the International Brotherhood of Electrical Workers which will serve the CP family, customers, shareholders and the North American economy well for years to come. It is an exciting time to be at CP as we are well positioned for a strong second half of the year," Creel said.

"With labour stability in place, strong underlying network performance and a robust demand environment, the path is clear and the opportunities are many.

Excluding one-time items, adjusted earnings rose to C$453 million or C$3.16 per share, from C$407 million or C$2.77 per share year-over-year. 

CP Rail's operating ratio, which measures its efficiency, worsened and rose to 64.2% from 62.8%.

CP Rail says its revenue ton-miles increased 4% and its carloads 2%. 

Shares of CP Rail closed up 3.36% at C$248.83 in Toronto. 

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Wed, 18 Jul 2018 19:08:00 +1000 https://www.proactiveinvestors.com.au/companies/news/201090/canadian-pacific-railway-reports-revenue-growth-of-7-in-its-second-quarter-shares-rise-201090.html
<![CDATA[News - Canadian Pacific Railway strike over for now but tentative agreement still to be ratified ]]> https://www.proactiveinvestors.com.au/companies/news/197957/canadian-pacific-railway-strike-over-for-now-but-tentative-agreement-still-to-be-ratified-197957.html Canadian Pacific Railway (TSE:CP) has reached a four-year tentative agreement with the union that represents 3,000 conductors and engineers, ending a strike that began last night.

Picket lines came down today and full rail operations will resume as early as Thursday morning across Canada. Another 5-year agreement was also reached with the Kootenay Valley Railway.

In a news release, CP Rail chief executive officer, Keith Creel, said the move was positive for 12,000 CP Rail employees, customers and the entire Canadian economy. 

“It is especially meaningful to achieve a four-year tentative agreement with our valued locomotive engineers and conductors, providing long-term stability for all parties involved,” he said in a statement. “This is a significant step toward a renewed positive relationship growing forward together serving our customers and the Canadian economy.”

READ: Canadian Pacific Railway on strike; disruption in freight traffic looms

While details of the agreement are still being kept under wraps, due to pending ratification, the union said it was pleased with the outcome. 

“We believe this is a fair contract that our members can feel good about ratifying,” stated union president Doug Finnson.

“I am personally very satisfied with what we have negotiated.”

The tentative agreements must be ratified by union members over the coming months.

CP Rail shares were up 2.09% to C$246.04 on Wednesday afternoon. 

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Wed, 30 May 2018 14:57:00 +1000 https://www.proactiveinvestors.com.au/companies/news/197957/canadian-pacific-railway-strike-over-for-now-but-tentative-agreement-still-to-be-ratified-197957.html
<![CDATA[News - Canadian Pacific Railway on strike; disruption in freight traffic looms ]]> https://www.proactiveinvestors.com.au/companies/news/197881/canadian-pacific-railway-on-strike-disruption-in-freight-traffic-looms-197881.html Canadian Pacific Railway's (TSE:CP) 3000 conductors and engineers walked off the job late on Tuesday night, prompting fears that a strike could cripple rail networks across Canada.

The union representing the striking workers, The Teamsters Canada Rail Conference, said workers walked out at 10 p.m. EST, however, negotiations continued into the night with the company. Federal mediators have been brought in to help hammer out a new labour agreement for the workers. 

In more positive news, a second set of about 360 Canadian Pacific Railway (CP Rail) signal workers reached a tentative contract deal with the company. Additionally, it was announced that commuters in Toronto, Montreal and Vancouver would not be affected, despite using CP rail lines. 

Freight congestion already an issue

The labour disagreement has the potential to make freight congestion worse — particularly as many companies are already facing slowdowns at CP Rail's larger rival, Canadian National Railway. The lack of rail capacity has had a significant effect, as piles of commodities were stuck in the Canadian prairies this winter, including lumber, grain and oil. 

This quarter, intermodal cargo (containerized products and raw materials) was Canadian Pacific’s most significant business line, accounting for C$367mln in revenue — 22% of overall sales. Grain followed just behind, contributing C$367mln. 

According to a statement released by CP Rail, it has a contingency plan for a work stoppage and will work with customers to ensure a “smooth, efficient and safe wind down of operations.” 

"We can’t imagine that shippers will take these assurances in stride following the subpar rail service this past winter — particularly those in the grain, oil and lumber industries,” said Allison Landry, a Credit Suisse Group AG analyst, in a client note. “We wouldn’t be surprised to see swift government action.”

CP Rail was up 1.67% to $241.01 on Tuesday. 

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Tue, 29 May 2018 23:45:00 +1000 https://www.proactiveinvestors.com.au/companies/news/197881/canadian-pacific-railway-on-strike-disruption-in-freight-traffic-looms-197881.html
<![CDATA[News - Canada Pacific Railway 1Q profit falls 19%, curbed by fewer grain shipments ]]> https://www.proactiveinvestors.com.au/companies/news/195302/canada-pacific-railway-1q-profit-falls-19-curbed-by-fewer-grain-shipments-195302.html Canadian Pacific Railway Ltd. (NYSE:CP) said first-quarter profit fell 19%, curbed by fewer grain shipments.

Net income declined to US$3.48mln, or US$2.41 a share, from US$431mln, or US$2.93 a share, a year earlier, the company said in a statement today. That beat estimates of US$2.16 a share published on EarningsWhispers.com.

“This was a challenging quarter, as we battled extreme weather and unprecedented demand, specifically in the northern reaches of our network," Chief Executive Officer Keith Creel said in the statement.

The stock was little changed at US$178.50 in extended trading after the market close.

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Wed, 18 Apr 2018 16:39:00 +1000 https://www.proactiveinvestors.com.au/companies/news/195302/canada-pacific-railway-1q-profit-falls-19-curbed-by-fewer-grain-shipments-195302.html
<![CDATA[News - CP Rail's shares drop over 5% as company lowers full year guidance ]]> https://www.proactiveinvestors.com.au/companies/news/114677/cp-rail-s-shares-drop-over-5-as-company-lowers-full-year-guidance-114677.html

Canadian Pacific (TSE:CP) cut its revenue prospects from 2-3% rather than the 7-8% it had forecast last April. The cuts come even as the company reported earnings of C$2.45 a share in line with analysts’ expectations.

Still, CP’s shares took a 5.5% hit this afternoon as it released its financial results for the second quarter.

Net income actually rose 5% to C$390 million while revenue decreased 1.7% to C$1.65 billion.

The operating ratio improved to 60.9% from 65.1 percent a year earlier, but did not match rival Canadian National Railway, which reported an operating ratio of 56.4 percent.

The lower the operating ratio, defined as operating expenses as a percentage of revenue, the better. And for a railway company, which spends much of its revenues to maintain operations, it is a key measure. An operating ratio of 80 or lower is acceptable.

The railway also announced Tuesday that Andrew Reardon was unanimously elected Chairman of its Board of Directors in the wake of the resignations of the previous Chairman, Gary Colter and board member Krystyna Hoeg over a governance issue the company said.

Total carloads fell 3 percent in the quarter due to 25% and 8% lower grain shipments in the United States and Canada respectively. The crude-by-rail segment fell 24% but potash transport and coal rose by a respective 12% and 2%.

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Tue, 21 Jul 2015 15:32:00 +1000 https://www.proactiveinvestors.com.au/companies/news/114677/cp-rail-s-shares-drop-over-5-as-company-lowers-full-year-guidance-114677.html
<![CDATA[News - Canadian Pacific Railway tops views as Q3 profit rises 20% ]]> https://www.proactiveinvestors.com.au/companies/news/90672/canadian-pacific-railway-tops-views-as-q3-profit-rises-20-36425.html Canadian Pacific Railway (TSE:CP) (NYSE:CP) beat expectations Wednesday as it reported a  20 per cent higher third quarter profit with revenues rising 8 per cent. 

The period marks the first full quarter under its new CEO, Hunter Harrison - also the choice of  CP's biggest shareholder, William Ackman's hedge fund, Pershing Square Capital Management. Harrison has vowed change at CP - whose past results have disappointed investors. 

The company, Canada's second biggest rail operator, reported net income of $224 million, or $1.30 per share, compared to a profit of $187 million, or $1.10 per share, in the year-ago period. 

Total revenues rose 8 per cent to $1.5 billion. 

Analysts on average had expected earnings of C$1.23 per share, according to Thomson Reuters.

Shares of CP rose more than 5 per cent in Toronto to $92.32. Its stock is up over 23 per cent in the last 3 months. 

"Momentum is building at Canadian Pacific.  We have implemented new services; closed terminals and certain yard operations; and we've put a new leadership team in place," said president and CEO, E. Hunter Harrison, who took over as chief in late June after a protracted proxy battle that also removed the board's chairman and several board members.

"The team has made significant progress on operational improvements, controlling costs and on delivering results.  And this is just the beginning." 

CP said that its operating ratio, an important gauge of performance in the railway industry, was 74.1 per cent, lower by 170 basis points from 75.8 per cent in the year ago period. 

The lower the number - which measures operating costs as a percentage of revenue - the more efficient its operations. The Calgary, Alberta-based company is targeting an operating ratio of 70 to 72 per cent by 2014 and 68.5 to 70.5 per cent by 2016.  

During the third quarter, operating expenses grew 6 per cent to $1.1 billion. 

Late Monday, Canadian National Railway Co. (CN)(TSE:CNR) posted a modest increase in third-quarter profits as sales climbed for all its business areas. Canada's largest rail operator also affirmed its full-year forecasts despite caution over the economy.

Montreal-based CN also kept its full-year guidance for 2012 earnings per share growth of 15 per cent. Due to economic unpredictability, CN said it would not issue forecasts for 2013 until it releases fourth-quarter earnings.

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Wed, 24 Oct 2012 10:34:00 +1100 https://www.proactiveinvestors.com.au/companies/news/90672/canadian-pacific-railway-tops-views-as-q3-profit-rises-20-36425.html
<![CDATA[News - Canadian Pacific sees another board member resign, third since May ]]> https://www.proactiveinvestors.com.au/companies/news/87663/canadian-pacific-sees-another-board-member-resign-third-since-may-31586.html Canadian Pacific Railway (TSE:CP)(NYSE:CP) Friday announced that Tony Ingram has resigned from the company’s board of directors, joining a host of resignations since a major overhaul in management back in the spring.

Leading up to the company's annual general meeting in May, a long, public proxy battle was waged by CP’s largest shareholder Bill Ackman - head of Pershing Square Capital Management – who wanted to dethrone the long-time, yet faltering management at CP and elect seven hand-picked directors.

Hours before a vote to decide their fate, CP’s beleaguered CEO Fred Green resigned and five other board members said they would not stand for re-election.

Green was followed by a handful of CP’s senior management, including John Cleghorn, Tim Faithfull, Edmond Harris, Michael Phelps and Roger Phillips.

Ingram now joins the growing list of former board members, with CP noting that he "served diligently" on two board committees, namely the Safety, Operations and Environment Committee (SOE) and the Management Resources and Compensation Committee.

"Mr. Ingram's insight and guidance was particularly appreciated by the SOE Committee," said CP chairman Paul Haggis, who went on to thank Ingram for his contributions to the company.

CP noted that at this time the board does not intend to fill the vacancy created by Ingram's departure.

Just a week ago, the company named former Canadian National Railway Co. (TSE:CN) boss Hunter Harrison as its new president and chief executive officer.

Pershing Square had garnered support from many of the railway's other major shareholders, and several proxy advisory firms publically advocated for Ackman’s nominees in the election, including his call to appoint Harrison as Green’s replacement.

With nearly 50 years of railroad experience, Harrison previously served as the president and CEO of CN and, prior to that, as president and CEO of Illinois Central Railroad.

Harrison is also credited for turning CN into best in class in terms of profitability and efficiency, according to analysts cited by the Financial Post. CP on the other hand, currently has the worst operating ratio in the industry.

Canadian Pacific operates a North American transcontinental railway providing freight transportation services, logistics solutions and supply chain expertise.

Just a week after the company’s AGM, Teamsters Canada announced a strike against CP that lasted the six days sand saw 4,800 members of the Teamsters Canada Rail Conference walk off the job.

As a result of the strike, CP suspended its freight service across the country, prompting Federal Labour Minister Lisa Raitt to introduce back-to-work legislation.

In June the company and U.S. Silica Holdings (NYSE:SLCA) announced a multi-year agreement for the movement of frac sand from Silica’s mining and processing facility in Sparta, Wisconsin.

Financial details of the transaction were not disclosed.

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Fri, 06 Jul 2012 09:28:00 +1000 https://www.proactiveinvestors.com.au/companies/news/87663/canadian-pacific-sees-another-board-member-resign-third-since-may-31586.html
<![CDATA[News - Canadian Pacific appoints former CN boss Hunter Harrison as president and CEO ]]> https://www.proactiveinvestors.com.au/companies/news/87487/canadian-pacific-appoints-former-cn-boss-hunter-harrison-as-president-and-ceo-31256.html Canadian Pacific Railway (TSE:CP)(NYSE:CP) Friday named former Canadian National Railway Co. (TSE:CN) boss Hunter Harrison as its new president and chief executive officer.

After a long, public proxy battle this year, Harrison’s appointment as president and CEO ends a crusade led by CP’s largest shareholder Bill Ackman, head of Pershing Square Capital Management to dethrone the long-time, yet faltering management and elect his hand-picked, seven directors.

For much of the past seven months, the war waged on, with Ackman and now-former management issuing letter after letter to shareholders to try and sway a decision at CP’s annual general meeting in May.

Hours before a vote to decide their fate, CP’s beleaguered CEO Fred Green resigned, and five other board members said they would not stand for re-election.

Green was followed by a handful of CP’s senior management, including John Cleghorn, Tim Faithfull, Edmond Harris, Michael Phelps and Roger Phillips.

Pershing Square had garnered support from many of the railway's other major shareholders, and several proxy advisory firms publically advocated for Ackman’s nominees in the election, including his call to appoint Harrison as Green’s replacement.

With nearly 50 years of railroad experience, Harrison previously served as the president and CEO of CN and, prior to that, as president and CEO of Illinois Central Railroad.

"The board welcomes Mr. Harrison's experience and leadership to CP," said CP chairman Paul Haggis.

"We look forward to benefiting from his strong track record of service reliability, efficient asset utilization, and strategic capital expenditure."

Indeed, Harrison’s reputation is shining, having received numerous accolades, including North America's Railroader of the Year by Railway Age magazine and CEO of the Year by the Globe and Mail's Report on Business magazine.

Harrison is also credited for turning CN into best in class in terms of profitability and efficiency, according to analysts cited by the Financial Post.

CP on the other hand, currently has the worst operating ratio in the industry and Harrison is now tasked with fixing that – something he has reportedly vowed to do by 2015 by implementing his “precision railroading” principles.

"CP is an incredible franchise with significant market opportunity, solid infrastructure, and innovative and hard-working employees," Harrison said.

"I am proud to be working with one of North America's iconic companies and I look forward to quickly getting to know the priorities of CP's customers, shareholders, employees, and the communities served by the railway."

Canadian Pacific operates a North American transcontinental railway providing freight transportation services, logistics solutions and supply chain expertise.

Just a week after the company saw major management and board changes, Teamsters Canada announced a strike against CP that lasted the six days sand saw 4,800 members of the Teamsters Canada Rail Conference walk off the job.

As a result of the strike, CP suspended its freight service across the country, prompting Federal Labour Minister Lisa Raitt to introduce back-to-work legislation.

In other news, last week the company and U.S. Silica Holdings (NYSE:SLCA) announced a multi-year agreement for the movement of frac sand from Silica’s mining and processing facility in Sparta, Wisconsin.

Financial details of the transaction were not disclosed.

CP’s shares were up 1.12 per cent in morning trading in Toronto, at $74.34.

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Fri, 29 Jun 2012 10:20:00 +1000 https://www.proactiveinvestors.com.au/companies/news/87487/canadian-pacific-appoints-former-cn-boss-hunter-harrison-as-president-and-ceo-31256.html
<![CDATA[News - CP CEO resigns ahead of proxy vote ]]> https://www.proactiveinvestors.com.au/companies/news/86278/cp-ceo-resigns-ahead-of-proxy-vote-29249.html After months of a very public proxy battle, hours before a vote to decide their fate, Canadian Pacific’s (TSE:CP) beleaguered CEO has resigned, and five other board members have said they will not stand for re-election.

Fred Green's departure as president and CEO will be effective immediately.

Green leaves the company after 34 years, and has also resigned as a director ahead of CP’s shareholder meeting later this morning.

"The board wishes to thank Fred [Green] for his dedicated years of service," said CP chairman John Cleghorn in a recent statement.

Cleghorn himself has also announced he will not stand for re-election, along with Tim Faithfull, Edmond Harris, Michael Phelps and Roger Phillips.

"This decision was made after taking into account the views expressed by shareholders about the desire for board change," said CP in a statement.

The announcement comes after a four month-long campaign by William Ackman, whose hedge fund Pershing Square Capital is CP's largest shareholder with a 14.2-per-cent stake, to dethrone the current management and elect his hand-picked, seven directors.

Recently, Pershing Square garnered support from many of the railway's other major shareholders, and several proxy advisory firms have publically advocated for Ackman’s nominees in the election being held today.

CP suggested in a statement that it expects all seven directors backed by Ackman to win.

"Once Pershing Square nominates all seven of its director nominees, there will be only sixteen candidates for the sixteen available positions on the board," said the company.

"Accordingly, it is expected that the board will be comprised of the following individuals immediately following the annual meeting: William Ackman, Gary Colter, Richard George, Paul Haggis, Paul Hilal, Krystyna Hoeg, Tony Ingram, Richard Kelly, Rebecca MacDonald, The Hon. John Manley, Anthony Melman, Linda Morgan, Madeleine Paquin, David Raisbeck, Hartley Richardson and Stephen Tobias."

Among its recommendations for change, Pershing Square was seeking to replace Fred Green as chief executive with Hunter Harrison, the former head of Canadian National Railway Co. (TSE:CNR).

In an April letter to CP shareholders, Ackman wrote: "Time and time again, the company has announced a new plan, shown a glimmer of operational improvement, only to fail to achieve sustained progress.

"The problems are probably not the plans themselves. Rather, the failure has been execution of those plans by management and the board's inadequate oversight."

Earlier this month, proxy advisory firms Glass Lewis and Egan-Jones publically backed Pershing Square Capital. Institutional Shareholder Services (ISS) was among the first proxy advisory firms to publically voice its support for the hedge fund.

"Because the dissidents have demonstrated a compelling case that poor board oversight has allowed the company’s performance to drift further and further below both its peers and its potential over at least half a decade, it seems clear that change on the board is needed," ISS said in its report.

The Ontario Teachers’ Pension Plan (OTPP) also went public backing Pershing Square.

OTPP owns 2.3 million shares in CP, and on its website said it is voting for all seven nominees for the board put forth by Pershing.

According to reports from the Globe and Mail, the resignation of this many senior officers and directors marks the biggest proxy upset in corporate Canada.

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Thu, 17 May 2012 08:54:00 +1000 https://www.proactiveinvestors.com.au/companies/news/86278/cp-ceo-resigns-ahead-of-proxy-vote-29249.html
<![CDATA[News - Canadian Pacific reports $142 mln Q1 profit ahead of crucial shareholder vote ]]> https://www.proactiveinvestors.com.au/companies/news/85531/canadian-pacific-reports-142-mln-q1-profit-ahead-of-crucial-shareholder-vote-28015.html Canadian Pacific Railway (CP)(TSE:CP) Friday beat analyst expectations with a $142-million profit in the first quarter, or 82 cents per share.

That was two cents per share better than analyst estimates and in line with a statement issued by the company last week, when it said the first quarter had been better than expected.

Last year, first quarter earnings were $34 million or 20 cents per share, due to a harsh winter that slowed shipments and drove up costs.

The rail company's revenue for the three months ended March 31 was $1.37 billion. That was up from $1.16 billion in the first quarter of 2011.

Last week, the company gave guidance for the first quarter that it expected a profit between 80 and 83 cents per share for the quarter.

"Our record operating metrics are driving enhanced financial results, as evidenced by a strong first quarter performance," CP's
president & chief executive Fred Green said.

"By aggressively executing on the Multi-Year Plan, CP delivered an increase in revenues of $213 million and an improvement in
operating ratio of 1,050 bps during the quarter."

"We have improved operating momentum, we are delivering excellent service and we have a stronger, more resilient rail network. This quarter, we generated an 18 percent year-over-year increase in freight revenues.

"Looking ahead, we are confident we can continue to deliver improvements in our operating metrics and financial performance and further growth in shareholder value."

Earnings were released just hours before CP management faces shareholders at an annual meeting in Calgary.

CP's senior executives and board of directors have been fending off demands for major change to improve performance at Canada's second-largest railway. The company's largest shareholder - activist investment firm Pershing Square led by Bill Ackman - has been calling for the removal of CP's chief executive Fred Green, to be replaced with former Canadian National Railway (TSE:CNR) chief executive Hunter Harrison.

Pershing Square has also named seven nominees to sit on the CP's 15-member board.

Pershing chief executive officer Bill Ackman has called CP the worst-performing top tier railroad in the industry and put the blame on the company's board and Green.

In a recent letter to shareholders, Ackman wrote: "Time and time again, the company has announced a new plan, shown a glimmer of operational improvement, only to fail to achieve sustained progress.

"The problems are probably not the plans themselves. Rather, the failure has been execution of those plans by management and the board's inadequate oversight."

Canadian Pacific transports coal, fertilizer, grain, automobiles, consumer goods and other materials across its North American rail network.

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Fri, 20 Apr 2012 09:27:00 +1000 https://www.proactiveinvestors.com.au/companies/news/85531/canadian-pacific-reports-142-mln-q1-profit-ahead-of-crucial-shareholder-vote-28015.html