Canadian Pacific Railway (CP) Q2 2023 Earnings Call Transcript

For the period ending June 30, 2023

July 27, 2023 4:30 p.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good afternoon. My name is Leo and I will be your conference operator today. At this time, I would like to welcome everyone to CPKC’s Second Quarter 2023 Conference Call. The slides accompanying today’s call are available at investor.cpkcr.com. All lines have been placed in mute to prevent any background noise. [Operator Instructions]

I would now like to introduce Chris de Bruyn, Assistant Vice President, Investor Relations and Treasurer to begin the conference.

Chris de Bruyn

Thank you, Leo. Good afternoon, everyone and thank you for joining us today. Before we begin, I want to remind you this presentation contains forward-looking information. Actual results may differ materially. The risks, uncertainties, and other factors that could influence actual results are described on Slide 2 in the press release and in the MD&A filed with Canadian and U.S. regulators. This presentation also contain non-GAAP measures outlined on Slide 3. Please note in addition to our regulated quarterly financials there are supplemental -- combined and operating performance data available at investor.cpkcr.com which some of today’s discussion we’ll focus on.

With me here today is Keith Creel, President and Chief Executive Officer; Nadeem Velani, our Executive Vice President and Chief Financial Officer; John Brooks, our Executive Vice President and Chief Marketing Officer; and Mark Redd, our Executive Vice-President and Chief Operating Officer.

Formal remarks will be followed by Q&A. In the interest of time, we would appreciate if you limit your questions to one. It is now my pleasure to introduce our President and CEO, Mr. Keith Creel.

Keith Creel

Hey thanks Chris and good afternoon. Let me start by thanking our CPKC family of rail orders across all of North America that has been hard working in bringing these two companies together, so that our customers and [Indiscernible] each other. You can imagine the quantum of work has been monumental, now the effort against the quantum the work has been inspiring.

So let’s take a look at the results from the quarter. In the second quarter, we produced revenues of $3.2 billion and operating ratio of 64.6% and core EPS of $0.83. We saw volumes down 5% in the quarter, head count up 6% versus last year, so no doubt, a challenging quarter as we dealt with the softer demand environment that John's going to speak more about that in a few moments.