Canadian Pacific Railway (CP) Posts Q3 EPS of C$2.73; Names Permanent CFO

October 19, 2016 8:33 AM EDT
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Canadian Pacific Railway (NYSE: CP) reported Q3 EPS of CDN$2.73, CDN$0.56 better than the analyst estimate of CDN$2.17. Revenue for the quarter came in at CDN$1.55 billion versus the consensus estimate of CDN$1.23 billion.

"Despite decreased revenues, tied to a delayed grain harvest and stiff economic headwinds, our business model continues to perform on the cost side," said E. Hunter Harrison, CP's Chief Executive Officer. "Our commitment to efficiency, asset optimization, and operational excellence has produced yet another record-low operating ratio."

"Given the delayed grain harvest, lower crude volumes and persistent economic challenges compounded by a strengthening Canadian dollar, we are now expecting mid-single-digit EPS growth this year," Harrison said. "While disappointed that we will not meet our previous forecast, I am incredibly proud that despite these challenges, CP will deliver its lowest-ever annual operating ratio. Our industry-leading operating plan and continued focus on improving service to our customers means we are well-positioned to capitalize on increasing volumes leading into 2017."

Management Change:

Canadian Pacific announced that Nadeem Velani has been named Vice-President and Chief Financial Officer. Velani had been serving as Vice-President and interim CFO since September 9, 2016.

"Working closely with the board and after performing all necessary due diligence, we are pleased to name Nadeem our Chief Financial Officer," said E. Hunter Harrison, CP's Chief Executive Officer. "In Nadeem we have a trusted and highly capable leader who will bring stability to this role for the long-term."

Velani joined CP in March 2013 and served as Vice-President Investor Relations before becoming interim CFO. Prior to CP, Velani spent 15 years at Canadian National Railway Co. where he worked in a variety of positions in Strategic and Financial Planning, Investor Relations, Sales and Marketing and the Office of the President and CEO.

"I welcome this tremendous opportunity to work closely with the executive team as we continue to write the CP story," said Velani. "I am proud to lead the finance team and am excited about what the future will bring under the leadership of Hunter and Keith."

As CP's Vice-President and CFO, Velani is a key member of the senior management team responsible for helping plan the long-term strategic direction of the company. Other responsibilities include financial planning, investor relations, reporting and accounting systems as well as pension, treasury and tax.

Velani holds an undergraduate degree in Economics from Western University and an MBA in Finance/International Business from McGill.

For earnings history and earnings-related data on Canadian Pacific Railway (CP) click here.

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