CP Rail beats profit estimates on higher shipments

FILE PHOTO: A CP Rail train rolls through the rocky mountains of near Lake Louise, Alberta, April 28, 2017. Picture taken April 28, 2017. REUTERS/Todd Korol/File Photo

(Reuters) - Canadian Pacific Railway Ltd CP.TO reported a higher-than-expected quarterly profit on Wednesday as Canada's no.2 railroad operator was helped by higher shipments of commodities like grains and potash.

CP said total carloads, the amount of freight loaded into freight cars during a specified period, rose 2 percent.

The Calgary-based company said revenue from grains jumped 2.5 percent to C$372 million in the reported quarter, while revenue from potash rose 6.4 percent.

However, the company saw an 8.8 percent increase in expenses largely driven by a rise in fuel costs.

CP’s net income fell to C$436 million ($331.08 million), or C$3.04 per share, in the second quarter ended June 30, from C$480 million, or C$3.27 per share, a year earlier.

On an adjusted basis, the company earned C$3.16 per share, beating analysts’ average estimate of C$3.12, according to Thomson Reuters I/B/E/S.

The company’s revenue rose to C$1.75 billion from C$1.64 billion.

Reporting by Anirban Paul in Bengaluru; Editing by Shounak Dasgupta