CP Rail Earnings Beat Analyst Estimates on Declining Costs

Canadian Pacific Railway Ltd. reported third-quarter profit that topped analysts’ estimates, buoyed by a weaker currency and expense reductions that included parking locomotives.

Earnings excluding some items were C$2.69 a share, Canadian Pacific said Tuesday in a statement. That beat the C$2.68 average estimate of 26 estimates compiled by Bloomberg. Revenue advanced 2.3 percent to C$1.71 billion ($1.31 billion), beating the C$1.68 billion average estimate.

The results capped a quarter in which Chief Executive Officer Hunter Harrison was sidelined while recovering from leg surgery, leaving his designated successor, Chief Operating Officer Keith Creel, in charge of Canada’s second-largest railroad. Harrison, 70, has been engaged in company business during an absence the carrier said in July would last “a few weeks.”

Canadian Pacific didn’t comment in the statement on Harrison’s health, and may face questions about the CEO’s status when it holds a conference call at 11 a.m. New York time.

Like its major peers across North America, Canadian Pacific has been pinched by dwindling cargo volumes this year. The global rout in crude prices has sapped demand for oil-by-rail shipments and for the sand used in hydraulic fracturing.

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