Canadian Pacific is a transcontinental railway in Canada and the United States with direct links to major ports on the west and east coasts. CP provides North American customers a competitive rail service with access to key markets in every corner of the globe. CP is growing with its customers, offering a suite of freight transportation services, logistics solutions and supply chain expertise. Visit cpr.ca to see the rail advantages of CP. CP-IR
CP reported Net income of $618 million in the third quarter of 2019, a decrease of 1% as compared to the same period of 2018, primarily due to the FX translation losses on debt and lease liabilities in 2019 compared to FX translation gains on debt in 2018, partially offset by growth in operating income. Adjusted income, which excludes the FX translation losses and gains on debt and lease liabilities, was $640 million in the third quarter of 2019, an increase of 9% compared to the same period of 2018. This increase was primarily due to higher operating income.
CP reported an Operating ratio of 56.1% in the third quarter of 2019, a 220 basis point improvement as compared to the same period of 2018. This improvement was primarily due to higher freight revenue.
Adjusted diluted EPS and Adjusted income are defined and reconciled in Non-GAAP Measures and discussed further in Results of Operations of this Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.