Q2 2024 Canadian Pacific Kansas City Ltd Earnings Call Transcript
Key Points
- Canadian Pacific Kansas City Ltd (CP) reported strong revenue growth of 8% in Q2 2024, reaching $3.8 billion.
- The company achieved a significant improvement in its operating ratio, which decreased by 280 basis points to 61.8%.
- Earnings per share (EPS) increased by 27%, reaching $1.05.
- Operational metrics showed positive trends, including a 9% decline in average terminal dwell and a 6% improvement in average train speed.
- The company reported a 38% improvement in personal injuries, highlighting a strong focus on safety.
- The freight environment remains challenging, with ongoing macroeconomic headwinds affecting certain segments.
- There is potential for a labor strike, which could disrupt operations and impact financial performance.
- The company faced a significant casualty cost in July, estimated at $45 million to $50 million, which will impact Q3 results.
- Stock-based compensation costs are expected to increase in Q3, adding to financial pressures.
- Certain segments, such as forest products and metals, minerals, and consumer products, experienced volume declines due to a soft macro environment and specific disruptions.
Good afternoon, everyone. My name is Bo and I will be your conference operator today. At this time, I would like to welcome everyone to CPKC's second-quarter 2024 earnings conference call. The slides accompanying today's call are available at investor.cpkcr.com. (Operator Instructions)
I would now like to introduce Chris de Bruyn, Vice President, Capital Markets, to begin the conference. Chris, please go ahead.
Thank you, Bo. Good afternoon, everyone, and thank you for joining us today. Before we begin, I want to remind you this presentation contains forward-looking information. Actual results may differ materially. The risks, uncertainties and other factors that could influence actual results are described on Slide 2, in the press release and in the MD&A filed with Canadian and US regulators.
This presentation also contains non-GAAP measures outlined on Slide 3. Please note, in addition to our regular quarterly financials, their supplemental Q2 combined
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