Canadian Pacific Kansas City says first-quarter earnings rose ahead of merger

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Fresh from a historic merger, Canadian Pacific Kansas City president and CEO Keith Creel says the company is focused on a disciplined integration into a railway network that he believes will become 'the most relevant in North America.'

Fresh from a historic merger, Canadian Pacific Kansas City president and CEO Keith Creel says the company is focused on a disciplined integration into a railway network that he believes will become "the most relevant in North America."

CPKC reported its income and revenue rose in the first quarter of 2023. It was the last earnings report for the company's operations before the merger of Canadian Pacific Railway and Kansas City Southern Railway kicked in April 14. Canadian National Railway Co. fought the acquisition, wooing KCS away from CP's initial offer with its own offer in May 2021, but the U.S. regulator rejected CN's bid on antitrust grounds later that year.Its network stretches from Vancouver and St. John, N.B., to Houston and Mexico City, reaching the Gulf of Mexico and the Pacific Ocean.

"We've got to make sure the network can handle the business to be able to execute our operating model and that's exactly what we're going to do." Executive vice-president and chief marketing officer John Brooks said on the conference call that customers are compelled by the capacity that CPKC can offer with its network.

The Calgary-based railway company said diluted earnings per share were 86 cents, up more than 36 per cent from 63 cents the same quarter last year.

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