Cargo Business Newswire

Friday, July 24, 2015

CP Railway to cut jobs and rail cars on cargo decline

Canadian Pacific Railway intends to cut jobs and idle some locomotives and railcars in order to lower costs and help offset a decline in cargo shipments.

Hours after lowering the company forecast for full-year sales and profit growth, Canadian Pacific said it would cull the workforce by up to 300 positions, or about 2 percent of the total. The railroad is also using about 20 percent fewer cars and locomotives, according to Chief Operating Officer Keith Creel.

"We are going to continue to pace demand," Creel said. "If business goes down and demand reduces, then obviously headcount is going to go down in

lockstep with it, and labor expense is going to reduce."

CP shares dropped to their lowest level in more than a year following the announcement of second-quarter results, contrasting with other major North American railroads. While profits at the Calgary-based railroad aligned with analyst estimates, three peers in the U.S. and Canada posted earnings in the past week that bested projections even as commodity carloads decline.

For more of the Bloomberg story: www.bloomberg.com