Calgary Alberta - Canadian Pacific Kansas City (CPKC) today announced its second-quarter results, including revenues of $3.2 billion, diluted earnings per share (EPS) of $1.42, and core adjusted combined diluted EPS 1 of $0.83.
 
"This quarter we made history by completing our transformational combination to create the first single-line transnational railroad linking Canada, the United States, and Mexico. By uniting the outstanding railroaders at Canadian Pacific and Kansas City Southern to form our new CPKC family, we already are changing the freight rail industry, redrawing the map, and delivering on the many benefits of our combined network," said Keith Creel, CPKC President and Chief Executive Officer.
 
Second quarter 2023 results 2
 
- Reported operating ratio (OR) increased by 970 basis points to 70.3 percent from 60.6 percent in Q2 2022.
 
- Core adjusted combined OR1 increased 430 basis points to 64.6 percent from 60.3 percent in Q2 2022.
 
- Reported diluted EPS increased to $1.42 from $0.82 in Q2 2022 due to the net impact of the derecognition of the investment in Kansas City Southern (KCS) upon consolidation.
 
- Core adjusted combined diluted EPS1 decreased to $0.83 from $0.95 in Q2 2022.
 
- Federal Railroad Administration-reportable train accident frequency declined 32 percent to 0.76 from 1.11 in Q2 2022.
 
"Despite the challenging results, we still expect to deliver mid-single-digit Core adjusted combined diluted EPS1 growth in 2023. The long-term growth opportunities for this franchise are unique and undeniable. With our CPKC advantage, we are extending our reach for our customers, introducing new service offerings to the marketplace, and creating new competition in North American supply chains," Creel added.
 
2023 Guidance
 
CPKC expects core adjusted combined diluted EPS1 to grow mid-single-digits versus 2022 core adjusted combined diluted EPS1 of $3.77.
 
CPKC's reported diluted EPS was also $3.77 in 2022.
 
Conference Call Details
 
CPKC will discuss its results with the financial community in a conference call beginning at 16:30 ET on 27 Jul 2023.
 
Conference Call Access - Canada and U.S. 800-225-9448
 
International: 203-518-9708
 
*Conference ID: CPQ223
 
Callers should dial in 10 minutes prior to the call.
 
Webcast
 
We encourage you to access the webcast and presentation material in the Investors section of CPKC's website at investor.cpkcr.com.
 
A replay of the second-quarter conference call will be available by phone through to 4 Aug 2023, at 800-839-2434 (Canada/U.S.) or 402-220-7211 (International).
 

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