Company News

CORRECTED-UPDATE 1-CP Rail profit beats on lower fuel expenses, higher shipments

(Correct to 7.1% from 16% in paragraph 3, to 1.4% from 9.9% in paragraph 4)

Oct 23 (Reuters) - Canadian Pacific Railway beat analysts’ estimates for quarterly profit on Wednesday, driven by lower fuel expenses and as it shipped more coal, crude and fertilizers.

The company’s results came a day after larger rival Canadian National Railway Co < CNI.N> missed estimates for quarterly revenue and cut its adjusted profit forecast for the year citing declining freight demand in North America.

CP said average fuel price fell 10% to $2.41 per gallon in the third quarter, leading to a 7.1% fall in fuel expenses.

Total carloads, the amount of freight loaded into cars during a specified period, rose 1.4%, while rail freight revenue per carload increased 3%, CP said.

Revenue in the energy, chemicals and plastics segment, which also contains its crude-by-rail shipments, rose 13% to C$382 million.

However, the company reduced its volume expectations for the year to low-single digit revenue ton-mile (RTM) from mid-single digit RTM on delays in the Canadian grain harvest and export potash volumes.

The country’s second-largest railroad operator said adjusted net income rose 8.7% to C$640 million ($490 million), or C$4.61 per share, in the quarter ended Sept. 30.

Analysts on average had estimated earnings of C$4.52, according to IBES data from Refinitiv.

$1 = C$1.31 Reporting by Dominic Roshan K.L. and Shanti S Nair in Bengaluru; Editing by Maju Samuel