Canadian Pacific Kansas City Rail says its first quarter following a major merger was a tough one, as wildfires and falling container demand plagued operations across the rail sector.
CPKC reports total revenues of $3.17 billion in the quarter ended June 30th, compared with $2.2 billion a year earlier — well before the marriage of North America’s two smallest Class 1 railways in April.
The Calgary-based railway operator says net income reached $1.33 billion in its second quarter versus $765 million the year before.
It says diluted earnings notched $1.42 per share, above the 82 cents per share of the same period in 2022.
Chief executive Keith Creel says the results are challenging, but that long-term growth opportunities are evident given the greater reach of the merged outfit.
CPKC’s US$31-billion purchase of Kansas City Southern — the continent’s first big railway merger in more than two decades — created the only railway stretching from Canada through to the U.S. and Mexico.