Slumping volume leads to job cuts at Canadian Pacific Railway
Slumping shipping volumes has forced Canadian Pacific Railway to cut 1,000 positions in the coming year.
Many of the cuts, coming in union and management positions, will be done through attrition by the middle of 2016.
The Calgary-based company released news during a conference call Thursday following the release of fourth quarter and 2015 results.
“While the North American economy braces itself for more headwinds, we remain optimistic about the future and CP’s continued growth,” said E. Hunter Harrison, CP’s Chief Executive Officer in the media release.
“Despite the challenges, we expect 2016 to bring an operating ratio below 59 while generating double-digit EPS growth – a testament to the strength of our operating model and plan for the future.”
CP Rail announced Thursday fourth-quarter reported diluted earnings per share of C$2.08 and adjusted diluted earnings per share of $2.72, the highest ever for the period.
For the full year, reported diluted earnings per share were $8.40 while adjusted diluted earnings per share climbed to a record $10.10, a 19-percent improvement over 2014’s adjusted EPS of $8.50.
The media release said CP’s commitment to operational efficiency produced a fourth-quarter adjusted and reported operating ratio of 59.8 percent, matching the record-setting performance of a year ago.
For 2015, CP posted a best-ever full-year adjusted and reported operating ratio of 61 and 60 percent, beating the previous record, set in 2014, by 370 and 470 basis points, respectively.
“Thanks to our committed, hard-working employees across the network we have produced a record low operating ratio along with record earnings per share,” said Hunter.
“Despite challenging economic conditions and lower commodity prices, we continue to focus on what we can control – lowering costs, creating efficiencies and improving service.”
No word if any of the job losses would happen in the Nelson area where CP operates Kootenay Valley Rail.
The Kootenay Valley Rail line runs from east of Creston to Trail and primarily moves product for Teck in Trail and Zellstoff Celgar pulp mill and Interfor sawmill in Castlegar.