Hunter Harrison, the handpicked choice of CP's biggest shareholder, William Ackman's hedge fund Pershing Square Capital Management, said the railway has introduced new services, closed inefficient terminals and yard operations and put new leadership in place.
"The team has made significant progress on operational improvements, controlling costs and on delivering results. And this is just he beginning," Harrison said in a statement.
Harrison took over as chief executive in late June, the result of a tough proxy battle that also unseated the board's chairman and several board members.
The company, which is replacing its chief financial officer and chief operating officer, recently named three new operation heads. CP is expected to present details on its restructuring and improvement plans in early December.
Operating Ratio Improves
For the period that ended Sept 30, net income rose to C$224 million ($225.68 million), or C$1.30 a share, from C$187 million, or C$1.10, a year earlier.
Analysts on average had expected earnings of C$1.23 per share, according to Thomson Reuters I/B/E/S.
Revenue rose 8 percent to C$1.45 billion.
CP's operating ratio, an important barometer of performance in the railroad industry, fell to 74.1 percent, from 75.8 percent.
The lower the number -- which measures operating costs as a
percentage of revenue -- the more efficient the operation. CP has long been a laggard by this measure, but Harrison has promised to make improvements.
The Calgary, Alberta-based railroad has an operating ratio target of 70 percent to 72 percent by 2014 and 68.5 percent to 70.5 percent by 2016. (Reuters)
