Canadian Pacific Kansas City Ltd (BSP:CPRL34)
R$ 112.31 1.54 (1.39%) Market Cap: 419.30 Bil Enterprise Value: 511.31 Bil PE Ratio: 28.48 PB Ratio: 2.29 GF Score: 81/100

Q3 2024 Canadian Pacific Kansas City Ltd Earnings Call Transcript

Oct 23, 2024 / 08:30PM GMT
Release Date Price: R$113.52

Key Points

Positve
  • Canadian Pacific Kansas City Ltd (CP) reported a 6% increase in revenues, reaching $3.5 billion, driven by strong volume growth of over 4%.
  • The company achieved an 8% increase in earnings per share, reaching $0.99, despite operational challenges.
  • CP received approval for a new direct connection with CSX, enhancing competitive rail service and providing new solutions to customers.
  • The company made significant strides in sustainability with the successful testing of a high horsepower hydrogen locomotive.
  • CP's automotive segment reached a record quarter with a 27% revenue increase, benefiting from a closed-loop service solution and new supply chain models.
Negative
  • The company faced significant operational challenges, including a derailment and a strike, impacting performance.
  • Personal injuries increased by 8%, highlighting ongoing safety concerns.
  • Forest products and metals, minerals, and consumer products segments experienced declines due to a soft macro environment.
  • Domestic intermodal volumes were down 7%, affected by lower short-haul business and a work stoppage.
  • The operating ratio was impacted by a 100 basis point headwind due to a work stoppage and higher casualty costs.
Operator

Good afternoon. My name is Marjorie and I'll be your conference operator today. At this time, I would like to welcome everyone to CPKC's third-quarter 2024 conference call. The slides accompanying today's call are available at investor.cpkcr.com. (Operator Instructions)

I would now like to introduce Ashley Thorne, AVP, Investor Relations, to begin the conference call.

Ashley Thorne
Canadian Pacific Kansas City Ltd - Assistant Vice President, Investor Relations

Thank you, Marjorie. 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 Q3 combined revenue and operating

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