Welcome to our dedicated page for Canadian Pacific Kansas City news (Ticker: CP), a resource for investors and traders seeking the latest updates and insights on Canadian Pacific Kansas City stock.
Canadian Pacific Kansas City Limited (CPKC) (TSX: CP, NYSE: CP) is a Class I railroad operator that emerged from the merger of Canadian Pacific Railway and Kansas City Southern on April 14, 2023. Headquartered in Calgary, Alberta, CPKC is the first and only single-line transnational railway connecting Canada, the United States, and Mexico. With approximately 20,000 route miles, CPKC provides unparalleled rail service, offering freight transportation services, logistics solutions, and supply chain expertise to North American customers.
The merger has greatly expanded CPKC's network, allowing for single-line-haul services from Canada through the upper Midwest down to Texas, the Gulf of Mexico, and into Mexico. CPKC operates roughly 3,300 miles of rail in Mexico and is a significant player in cross-border and intra-Mexico freight transport. The company hauls a diverse mix of products, including grain, intermodal containers, energy products like crude and frac sand, chemicals, plastics, coal, fertilizer and potash, automotive products, and various other merchandise.
CPKC's most recent financial results highlight their strong performance in the fourth quarter of 2023. They reported revenues of $3.8 billion, a diluted earnings per share (EPS) of $1.10, and core adjusted combined diluted EPS of $1.18. The company has led the industry with the lowest frequency of train accidents among Class I railroads for 17 consecutive years. This achievement underscores CPKC's commitment to safety and reliability.
Looking forward to 2024, CPKC is optimistic about leveraging unique synergy opportunities and improving macroeconomic conditions to sustain their growth trajectory. Their dedication to service and safety continues to drive value for customers and shareholders alike. In addition to their operational achievements, CPKC is also involved in community investment programs, such as a notable $1.5 million commitment to the American Heart Association for heart research over the next three years.
CPKC's operational excellence is complemented by their strong financial management and strategic initiatives. They have successfully issued and managed commercial paper programs backed by significant revolving credit facilities. CPKC's acquisition-related costs and financial integration of Kansas City Southern have been managed efficiently, ensuring minimal disruption to their operational performance.
In summary, CPKC stands as a pivotal force in North American rail transport, providing extensive rail service that connects key markets across Canada, the United States, and Mexico. Their continued focus on safety, service excellence, and strategic growth initiatives make them a critical player in the industry.
Canadian Pacific Kansas City (TSX: CP, NYSE: CP) reported strong first-quarter results on April 26, 2023. Revenues rose by 23% to $2.27 billion from $1.84 billion in Q1 2022, fueled by a robust Canadian grain harvest and intermodal services. The operating ratio (OR) improved significantly, reporting at 63.4%, down from 70.9% in Q1 2022. Diluted earnings per share (EPS) increased to $0.86, compared to $0.63 a year earlier, while core adjusted diluted EPS reached $0.90, up from $0.67. President and CEO, Keith Creel, emphasized the positive momentum ahead of the company's historic combination, highlighting the focus on capacity, service, and safety.
The Board of Directors of Canadian Pacific Kansas City Limited (TSX: CP, NYSE: CP) has declared a quarterly dividend of $0.19 per share, payable on July 31, 2023. Shareholders on record as of June 30, 2023 will receive this dividend, which qualifies as an "eligible" dividend under the Income Tax Act of Canada. CPKC is positioned as the first and only single-line transnational railway linking Canada, the United States, and Mexico, with approximately 20,000 route miles and access to major ports. The company aims to grow with its customers by offering freight transportation services and logistics solutions.
Canadian Pacific Kansas City (TSX: CP) and Knight-Swift Transportation Holdings (NYSE: KNX) have entered a multi-year agreement to enhance truckload intermodal services along CPKC's new corridor linking Mexico, the U.S., and Canada. The partnership aims to improve supply chain options for customers, leveraging Knight-Swift's established Mexico customer base and CPKC's rail network. Notably, a new railroad bridge over the Rio Grande is under construction, expected to bolster service efficiency by late 2024. Anticipated environmental benefits include a reduction of around 1.9 million tons of greenhouse gas emissions over five years and significant savings in highway maintenance, exceeding US$750 million. However, the release contains forward-looking statements regarding future operations and potential risks associated with the partnership.
Schneider National (NYSE: SNDR) has announced a partnership with Canadian Pacific Kansas City (NYSE: CP) to provide intermodal services connecting the upper Midwest U.S. with Mexico. The collaboration aims to enhance intermodal offerings, leveraging Schneider's extensive experience in Mexico and its large intermodal fleet of over 28,000 containers. Schneider plans to double its intermodal size by 2030, and this partnership is expected to deliver efficient, sustainable transportation solutions. The new service will commence in mid-May and is anticipated to improve reliability and capacity for customers' supply chains.
Canadian Pacific Kansas City (TSX: CP) announced a multi-year agreement with Schneider National Inc. to launch a new single-line intermodal transportation service connecting the U.S. and Mexico. This service aims to enhance reliability and capacity for Schneider’s customers, starting mid-May 2023, with Schneider acting as an anchor domestic intermodal customer on CPKC’s north–south corridor. CPKC plans to leverage its extensive rail network to provide truck-competitive intermodal options, backed by Schneider’s logistics expertise. The initiative includes the construction of a second span on the International Railroad Bridge to improve efficiency, expected to complete by the end of 2024. Both companies share sustainability goals focused on reducing greenhouse gas emissions through transitioning freight from trucks to rail.
On April 14, 2023, Canadian Pacific Kansas City Limited (CPKC) announced the immediate appointment of four new directors to the board of its wholly-owned subsidiary, Canadian Pacific Railway Company. The appointees—David Garza-Santos, Ambassador Antonio Garza, Henry Maier, and Janet Kennedy—bring extensive experience in transportation, logistics, and international business, particularly from their tenure at Kansas City Southern (KCS). This move aligns with the merger agreement between CP and KCS, which took effect with the creation of CPKC, the first single-line railway linking Canada, the U.S., and Mexico. CPKC operates approximately 20,000 miles of rail and employs nearly 20,000 people. The newly appointed directors will also be nominated for election at CPKC's Annual General Meeting on June 15, 2023.
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