CPKC says cross-border steel shipments effectively 'shut down' due to tariffs
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The Calgary-based railway said revenues rose by three per cent as its profits hit $1.2 billion in the quarter. Its trains carried seven per cent more volume overall, but import duties imposed by the United States had an impact.
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In recent months, the federal government under Prime Minister Mark Carney has imposed its own suite of tariffs on certain non-U.S. imports to protect the domestic industry from a flood of cheap, foreign steel.
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For CPKC, the impacts of dwindling cross-border steel trips were partially offset by more shipments of frac sand, which is used to extract oil and gas.
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It also saw revenues pick up for grains and coal, while it reported declines for auto, forest products and potash.
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Despite tariff-driven stops and starts to some segments of the business, revenue for CPKC increased three per cent over the second quarter last year, to a total of $3.7 billion.
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'Despite all the headlines, all these evolving trade policies, the challenges that we've all faced as an industry, we continue to drive differentiated, sustainable and profitable growth at CPKC,' Keith Creel, CPKC's chief executive, told analysts.
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The company's diluted earnings per share grew seven per cent over last year, at $1.33. However, those earnings remain lower than in 2023 when they sat at $1.42. Diluted earnings per share is a way of measuring a company's profitability.
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Brooks said that despite continued economic uncertainty and trade policy, the second half of this year is 'off to a solid start,' with the company positioned to continue growing.
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Canadian Pacific acquired Kansas City Southern in the spring of 2023 for US$31 billion — together the two formed CPKC, the first railway connecting Canada, the U.S. and Mexico.
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