Canadian Pacific Railway (TSX:CP) has reported record second quarter revenues of $2.05 billion.
The Calgary-based railway reported earnings of $1.25 billion for the three months ended June 30, up from $635 million in the same period last year. CP Rail's earnings per share (EPS) were $1.03, a 27% increase from $0.81 last year and also a second-quarter record.
Additionally, the company declared a quarterly dividend of $0.19 per share, payable this October.
The company's operating ratio, a key measure of railroad efficiency, increased by 301 basis points in the second quarter to 60.1% from 57.0% a year ago. Included in that metric is $308 million in expenses related to CP's efforts to acquire U.S. railway Kansas City Southern (NYSE:KSU).
In May, Kansas City Southern formally backed a merger offer from CP rival Canadian National Railway (TSX:CNR). However, Kansas City Southern paid a $700 million U.S. termination fee for backing away from its previous agreement and instead agreeing to be acquired by CP Rail.
Canadian Pacific Railway says it is continuing its application process to acquire Kansas City Southern.
