CANADIAN PACIFIC RAILWAY LTD. $232.62 - Toronto symbol CP

CANADIAN PACIFIC RAILWAY LTD. $232.62 (Toronto symbol CP; Shares outstanding: 164.2 million; Market cap: $38.5 billion; TSINetwork Rating: Average; Div. yield: 0.6%; www.cpr.ca) has reported record first-quarter results.

In the three months ended March 31, 2015, the company earned $375 million, up 49.4% from $251 million a year earlier. Per-share profits jumped 59.2%, to $2.26 from $1.42, on fewer shares outstanding. Revenue rose 10.3%, to $1.67 billion from $1.51 billion.

CP saw strong gains from shipping grain, fertilizers, coal, forest products, chemicals and consumer goods. That offset fewer shipments of crude oil, automotive products and metals.

The company continues to improve its efficiency by speeding up trains and cutting the time spent at terminals. As a result, its operating ratio improved sharply, to 63.2% from 72.0% a year ago. (Operating ratio is calculated by dividing regular operating costs by revenue. The lower the ratio, the better.)

CP Rail is a buy.

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