CP Rail gains from strong demand

Article Excerpt

CP’s train crews and signal workers were scheduled to go on strike recently. While union leaders have urged that action, an order from the federal Ministry of Labour requires members to vote directly on management’s latest contract offer. Voting opens May 14. Even if that proposal is rejected, a long strike seems doubtful: The federal government would likely move to bring in legislation ending a walkout. CANADIAN PACIFIC RAILWAY $227.98 (Toronto symbol CP; shares outstanding: 143.1 million; Market cap: $32.6 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. In the quarter ended March 31, 2018, the company’s revenue rose 3.7%, to $1.66 billion from $1.60 billion a year earlier. CP gained from both higher volumes and higher pricing to ship oil, metals, minerals, potash and consumer goods. Earnings in the quarter, excluding one-time items, rose 6.0%, to $390 million from $368 million. Due to fewer shares…