CP reports crude-by-rail shipments down 8%, but revenue up

Canadian Pacific Railway Ltd. reported shipments of crude oil by rail have dropped eight per cent by volume compared to lastyear, but its revenue increased by 10 per cent in the first quarter.

In its earnings report released Tuesday, CP said grain shipments and metal and minerals shipments were both down by two per cent compared to the first quarter of last year.

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That reflects falling demand for Canadian metals and minerals and the clearing of the backlog of Canadian grain from the 2013 season.

But shipments for potash, fertilizers and chemicals and plastics rose substantially, helping propel revenue in the first quarter to $4.67 billion.

Good news on profit

CP profit was an all-time high for any quarter of $320 million or 1.92 per diluted share, up 33 per cent from the previous year. Adjusted earnings per share advanced 59 per cent to $2.26

Harrison is known for tightening cost controls and trying to improve efficiencies at CP, which has a network of North American rail lines.

David Baskin, president of Baskin Wealth Management, says Harrison has been "almost a miracle worker" in improving CP's performance.

"In part he's had the good fortune of this move to ship oil by rail, which helped CP a lot and now he's the beneficiary of lower prices for fuel. Both of those show signs of peaking a bit," Baskin told CBC News.

He says opportunities to get better operating margins might have run their course as crude-by-rail is in decline and fuel prices probably won't head much lower.