Canadian Pacific Kansas City Limited (CPKC) reported significant financial performance for the three and nine months ended September 30, 2024, reflecting the impact of its acquisition of Kansas City Southern (KCS). Total revenues for Q3 2024 reached $3,549 million, a 6% increase from $3,339 million in Q3 2023. For the nine-month period, revenues surged to $10,672 million, up from $8,779 million in the same period last year. This growth was primarily driven by higher freight volumes and increased revenue per revenue ton mile (RTM).
Operating income for Q3 2024 was $1,203 million, slightly up from $1,173 million in Q3 2023. For the nine months, operating income rose to $3,619 million from $2,946 million. However, net income attributable to controlling shareholders for Q3 2024 was $837 million, compared to $780 million in Q3 2023, while for the nine months, it decreased to $2,517 million from $2,904 million in the previous year. Basic earnings per share (EPS) for Q3 2024 increased to $0.90 from $0.84, but for the nine months, it fell to $2.70 from $3.12.
Total operating expenses for Q3 2024 were $2,346 million, up from $2,166 million in Q3 2023, and for the nine months, expenses increased to $7,053 million from $5,833 million. The rise in expenses was attributed to higher compensation and benefits costs, fuel expenses, and purchased services, largely influenced by the KCS acquisition.
The company’s total assets as of September 30, 2024, amounted to $82,225 million, an increase from $79,902 million at the end of 2023. Total liabilities decreased to $37,145 million from $37,491 million, while total equity rose to $45,080 million from $42,411 million.
Strategically, CPKC's acquisition of KCS, which was consolidated on April 14, 2023, has been a significant development, enhancing its operational capabilities across North America. The acquisition-related costs for the first nine months of 2024 totaled $90 million, reflecting ongoing integration efforts. The company also faced a work stoppage in August 2024 due to a strike, which was resolved shortly after.
Overall, CPKC's financial results indicate a robust performance driven by strategic acquisitions and operational efficiencies, despite challenges in net income and rising expenses.
About CANADIAN PACIFIC KANSAS CITY LTD/CN
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