On July 20, 2016 the Canadian Pacific Railway announced an agreement with Keith Creel to succeed Hunter Harrison as CEO beginning July 1, 2017. The coporation also contracted Harrison for three years of post-retirement consulting services.
CP also reported on its second-quarter results:
– Revenues fell 12 percent to $1.45 billion from $1.65 billion
– Operating income decreased 15 percent to $551 million from $646 million
– Operating ratio increased 110 basis points to 62 percent from 60.9 percent
– Reported net income declined 16 percent to $328 million; adjusted income fell 23 percent to $312 million.
On July 19 a top director of the Calgary-based railway quit.
“Canadian Pacific issued a separate statement saying that one of its board of directors has resigned, days after he lost an appeal of gross negligence penalties for not reporting $18.85-million of taxable income from dividends. Canadian Pacific says Anthony Melman, who also served as the chairman of its finance committee, has stepped down to assess the impact of the Tax Court of Canada decision earlier this month,” The Canadian Press reported:
“Judge Randall Babcock ruled that Melman had been “wilfully blind” to his accountants’ .omission of the income in his 2007 tax return” The Canadian Press reported
On July 19 the railway corrected the weekly Revenue Ton Miles report for week 28.
“CP incorrectly understated the week 28 2015 RTMs as 2,441 million instead of 2,619 million and as a result overstated the year-over-year percentage changes. The 2016 week 28 RTMs ending July 16 were correctly reported. The error, caused by prior manual adjustments, has been fixed and the correct data for 2015 and year-over-year percentage changes are now posted (in the investors key metric section of the CP website),” the company reported.