CP Rail moves more of everything

Article Excerpt

CP reported record revenues in the latest quarter as it transported record volumes of all commodities. Those gains include a 38.9% jump in the number of carloads of crude oil—to 25,000 from 18,000 a year earlier. Oil volumes could, in fact, rise to over 40,000 carloads per quarter later this year. That possibility just adds to the company’s strong 2019 prospects, fuelled by rising demand for rail shipment. In addition, CP operates in an industry with limited competition. CANADIAN PACIFIC RAILWAY $274.44 (Toronto symbol CP; shares outstanding: 147.7 million; Market cap: $38.3 billion; TSINetwork Rating: Above Average; Dividend yield: 1.0%; www.cpr.ca) ships freight over a 22,000-kilometre rail network between Montreal and Vancouver, with links to hubs in the U.S. Midwest and Northeast. Overall revenue in the three months ended December 31, 2018, rose 17.1%, to a record $2.01 billion from $1.71 billion a year earlier. Most of the gain was the result of shipping more crude oil, potash, forest products, fertilizers, grain and automotive…