CALGARY — Canadian Pacific Railway Ltd. says it earned a fourth-quarter profit of $664 million, up from a profit of $545 million in the same period a year earlier.
The railway says its profit amounted to $4.82 per diluted share for the quarter ended Dec. 31, up from $3.83 per diluted share a year ago.
Revenue for the quarter totalled nearly $2.07 billion, up from nearly $2.01 billion in the same quarter a year earlier.
On an adjusted basis, CP Rail says it earned $4.77 per diluted share in the quarter, up from $4.55 per diluted share a year ago.
Analysts on average had expected a profit of $4.66 per share for the quarter and $2.02 billion in revenue, according to financial markets data firm Refinitiv.
CP Rail’s operating ratio, an industry metric where a lower ratio means more efficient operations, rose to 57.0 per cent for the last three months of 2019 compared with 56.5 per cent in the fourth quarter of 2018.
“CP’s strong operational performance and commitment to controlling costs enabled the railway to be successful despite headwinds to our bulk franchise,” CP Rail chief executive Keith Creel said in a statement.
“We continue to take a disciplined approach to sustainable, profitable growth — a plan rooted in the foundations of precision scheduled railroading. This approach in 2019 enabled CP to once again deliver its highest-ever revenues and the lowest-ever yearly operating ratio.”
For the full year, CP Rail reported net income of $2.44 billion or $17.52 per diluted share on $7.79 billion in revenue. That compared with net income of $1.95 billion or $13.61 per diluted share on nearly $7.32 billion in revenue in 2018.
The railway’s operating ratio for 2019 improved to 59.9 per cent compared with 61.3 per cent in 2018.
On an adjusted basis, CP Rail said it earned $16.44 per diluted share in 2019, up from an adjusted profit of $14.51 per diluted share in 2018.
In its outlook for 2020, the railway said it expected single-digit to low double-digit adjusted diluted earnings per share growth relative to 2019.
Volume growth this year is expected to be in the mid-single digits as measured by revenue ton miles, while capital expenditures are forecast at $1.6 billion.
This report by The Canadian Press was first published Jan. 29, 2020.
Companies in this story: (TSX:CP)
The Canadian Press
Note to readers: This is a corrected story. An earlier version incorrectly stated CP Rail’s full year revenue for 2018 and 2019.
P&G to increase prices further as commodity, freight costs bite
Procter & Gamble Co said on Tuesday it will raise prices of some of its grooming, oral and skin care products in the U.S. to counter higher commodity and freight costs that are expected to take a bigger bite out of its earnings this year.
Shares of the company, which reported lower quarterly earnings, while maintaining its full-year forecasts, were down 2.2% at $139.24.
The latest price increases are in addition to the mid to high single-digit percentage price hikes earlier this year on P&G’s products including Pampers diapers and Always sanitary pads.
The new price hikes are not being implemented broadly, but marked for specific items such as razors and in some sub-categories, CFO Andre Schulten said on a media call. U.S. retailers are aware of the new sticker prices, he added.
Global supply chains are under strain due to factors such as a resurgence of COVID-19 cases in Asia and labor shortages in the United States, leading to a surge in raw material prices that is also squeezing profits at Unilever and Reckitt Benckiser.
On Tuesday, P&G raised its commodity and freight costs impact for this fiscal year to $2.3 billion from $1.9 billion.
Schulten blamed the price hikes on warehousing and raw material costs, adding that diesel and energy prices were also trending higher.
“We do not anticipate any easing in these commodity cost pressures, he added.
The Gillette maker said the additional expenses will shave off 90 cents from its full-year earnings per share, compared with a previous forecast of a hit of 70 cents.
P&G kept its full-year forecast for earnings per share growth in the 3% to 6% range and net sales between 2% and 4%, banking on price hikes and higher demand for premium products to help offset the increase in costs.
“We expect pricing to be a larger contributor to sales growth in coming quarters as more of our price increases become effective,” Schulten said.
(Reporting by Uday Sampath and Siddharth Cavale in Bengaluru; Editing by Shounak Dasgupta)
Britain strikes green investment partnership with Bill Gates
Bill Gates is working with the British government to invest and bring down the cost of new greener technologies to help countries hit net-zero emission targets by 2050.
Speaking at a Global Investment Summit alongside Prime Minister Boris Johnson, Gates said investment was needed to further develop new technologies that were currently too expensive for the consumer market.
Gates said he would work with the UK to identify which projects should be backed, and that he expected at least one of the projects to be ready to scale up in the next five years.
“We will scale those up and bring down that cost, so we’ll get these to the same place we are today with solar and onshore wind, and so they can be scaled up to reduce emissions,” he said.
Johnson’s government said the 400 million pound ($552 million) partnership would supercharge green tech investment across the country, including in areas such as green hydrogen, long-term energy storage, sustainable aviation fuels and direct air capture of carbon dioxide.
Gates, the co-founder of Microsoft, made the commitment through his Breakthrough Energy Catalyst which brings together a coalition of private investors who want to back innovation to tackle climate change.
Britain has already pledged at least 200 million pounds to the development of new UK projects, and investors and businesses in the Gates project will match that sum.
($1 = 0.7251 pounds)
(Reporting by William James; writing by Kate Holton; editing by Alistair Smout)
First U.S. futures-based bitcoin ETF begins trading, bitcoin nears record
The first U.S. bitcoin futures-based exchange-traded fund began trading on Tuesday, sending bitcoin to a six-month high and within striking distance of its all-time peak, as traders bet the ETF could boost investment flows into cryptocurrencies.
The ProShares Bitcoin Strategy ETF began trading on Intercontinental Exchange Inc’s NYSE Arca on Tuesday under the ticker BITO after being greenlighted by the U.S. Securities and Exchange Commission.
Bitcoin futures have been overseen by the Commodity Futures Trading Commission for four years and ETFs – securities that track an asset and can be bought or sold on a stock exchange – are regulated by the SEC, offering some level of investor protection, SEC chair, Gary Gensler, said on Tuesday.
“Yet it’s still a highly speculative asset class and investors should understand that underneath, there is the same volatility and speculation,” he told CNBC.
Bitcoin, the world’s biggest cryptocurrency, touched $63,337.54 after the listing, its highest since mid-April and near its record of $64,895.22.
Known throughout its 13-year life for its volatility, bitcoin has risen by some 40% this month on hopes the advent of bitcoin ETFs – of which several are in the works – will see billions of dollars managed by pension funds and other large investors flow into the sector.
The BITO ETF was last at $40.95, up slightly from its $40.88 open.
“It has traded tightly, within a penny of fair value pretty much all morning, so it’s part of the ecosystem,” said Dave Nadig, chief investment officer and director of research at ETF Trends.
The ETF had traded around $500 million worth, notionally, by late morning, which is “about what we would expect for a media-darling first launch in the space,” he said.
Much of BITO’s initial volume appeared to be from retail investors, as there were only four block trades, above 10,000 shares, all morning, Nadig said.
Nasdaq Inc on Friday approved the listing of the Valkyrie Bitcoin Strategy ETF, and Grayscale, the world’s largest digital currency manager, plans to convert its Grayscale Bitcoin Trust into a spot bitcoin ETF, the company confirmed.
Crypto ETFs have launched this year in Canada and Europe amid surging interest in digital assets. VanEck and Valkyrie are among fund managers pursuing U.S.-listed ETF products, although Invesco on Monday dropped its plans for a futures-based ETF.
The SEC has yet to approve a spot bitcoin ETF.
Bitcoin futures were up 2.21% at $63,035.
(Reporting by John McCrank in New York, Tom Wilson in London; additional reporting by Tom Westbrook in Singapore and Katanga Johnson in Washington; Editing by Kim Coghill, Jason Neely and Andrea Ricci)
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