Creel: CP Positioned for ‘Another History-Making Year’

During CP’s Jan. 27 earnings announcement, it highlighted overcoming “significant operating challenges—devastating network outages in B.C. and extreme cold temperatures,” and closing merger partner Kansas City Southern into voting trust on Dec. 14, with the Surface Transportation Board review process now under way.



For the three-months ending Dec. 31, 2021, the railroad reported:

• An operating ratio of 59.2%, which included C$36 million in costs related to the KCS acquisition. This is an improvement over the 2020 quarter’s 53.9%. Excluding the acquisition-related costs, the fourth-quarter 2021 operating ratio increased 360 basis points from the 2020 quarter to 57.5%.



• Operating income of C$832 million, down 10% from C$928 million in fourth-quarter 2020. Adjusted, operating income came in at C$868 million, down 6% from C$928 million in 2020.

• Net income of C$532 million, down 34% from C$802 million in fourth-quarter 2020. Adjusted, net income was C$684 million, virtually flat with C$683 million in 2020.



• Diluted EPS of C$0.74, a decrease from C$1.19 in fourth-quarter 2020. Adjusted diluted EPS came in at C$0.95, a decrease from C$1.01.



For full-year 2021, CP posted:

• An adjusted operating ratio of 57.6%, increasing 50 basis points from 2020.

• Operating income of C$3.206 billion, down 3% from C$3.311 billion in 2020. Adjusted, operating income came in at C$3.389 billion, up 2% from C$3.311 billion in 2020.



• Net income of C$2.852 billion, up 17% from C$2.444 billion in 2020. Adjusted, net income was C$2.565 billion, up 7% from C$2.403 billion in 2020.

• Diluted EPS of C$4.18, an increase from C$3.59 in 2020, and adjusted diluted EPS of C$3.76, an increase from C$3.53 in 2020.



“I am tremendously proud of the resilience the CP team demonstrated to deliver these results,” said Creel, Railway Age’s Co-Railroader of the Year for 2022 with KCS President and CEO Pat Ottensmeyer. “CP’s world-class railroaders relied on our strong operating model and commitment to controlling what we can control to safely deliver for customers and shareholders despite the unique challenges faced in the quarter.

“This quarter we also reached a crucial milestone in our journey to create the first single-line rail network linking the U.S., Mexico and Canada by combining with Kansas City Southern. …

“During a historic year for CP, our dedicated team confronted the adversity we faced throughout 2021 head-on with grit and tenacity. I am excited for what lies ahead with this franchise as we move past the uncertainty and extensive supply chain disruptions created by the COVID-19 pandemic. The demand environment and overall economic strength, combined with CP’s unique initiatives and service excellence, have us well-positioned to drive profitable growth for our customers, employees and shareholders. These factors, coupled with the progression of our proposed combination with Kansas City Southern, position CP for another history-making year.”



Download CP 4Q21 Earnings Release:

Exhibit-99.1-Q4-2021-Earnings-ReleaseDownload

Download CP 4Q21 and Full-Year 2021 Earnings Presentation:

CP-Q4-2021-Presentation-FinalDownload

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