Canadian Pacific Railway warned Tuesday that it expects its revenue and profit to fall in its second quarter due to fewer shipments of grains, potash and other commodities on its trains. The Canadian railroad company also said it was hurt by wildfires in Alberta, Canada, and the stronger Canadian dollar.
U.S.-listed shares of Canadian Pacific slipped in Tuesday midday trading.
Canadian Pacific said it expects earnings of 2 Canadian dollars per share, below the 2.45 Canadian dollars analysts expected, according to FactSet. The railroad company said it expects revenue to fall 12 per cent from the same quarter a year ago. Analysts expected revenue to fall 6 per cent, according to FactSet.
Earlier in the year, Canadian Pacific dropped its roughly $30 billion offer to acquire Norfolk Southern Corp. because the deal was opposed by Norfolk Southern executives, politicians and rail customers along the route and other railroads. At the time, Canadian Pacific raised its dividend by 43 per cent and announced plans to repurchase up to 5 per cent of its stock.
Shares of Canadian Pacific Railway Ltd. fell $2.89, or 2.3 per cent, to $124.54. The stock is down about 26 per cent in the past year.