FILE PHOTO: The Canadian Pacific railyard is pictured in Port Coquitlam.
Canadian Pacific Railway Limited (TSX: CP) (NYSE: CP) today announced record second-quarter revenues of $1.98 billion, an increase of 13 percent from last year, and record earnings per share (EPS) with reported diluted EPS of $5.17 or $4.30 on an adjusted diluted EPS basis.
“I commend the team for this record second-quarter performance,” said CP President and Chief Executive Officer Keith Creel. “These results demonstrate the strength of precision scheduled railroading and are a testament to our collective commitment to deliver for our customers and the broader economy.”
SECOND-QUARTER HIGHLIGHTS
Revenues increased by 13 percent to $1.98 billion from $1.75 billion last year
Reported
diluted EPS of $5.17, a 70 percent increase from $3.04 last year, and
adjusted diluted EPS of $4.30, a 36 percent increase from $3.16 last
year
Operating ratio was a second-quarter record 58.4 percent, a
580 basis point improvement over last year’s second-quarter operating
ratio of 64.2 percent
“This quarter, we saw revenue growth across every line of business, strong operating metrics, and our best-ever second-quarter performance from a workload perspective, as measured by Gross Ton-Miles,” said Creel. “As has been proven time and again, our operating model can perform well in all economic conditions and we will remain disciplined in controlling our costs and doing what we said we would do. Our strategy for sustainable, profitable growth is working and we look forward to a strong finish to 2019.”
CP will discuss its results with the financial community in a conference call beginning at 9:30 a.m. eastern time (7:30 a.m. mountain time) today.
Conference Call Access
Toronto participants dial in number: 1-647-427-7450
Callers should dial in 10 minutes prior to the call.
Webcast
We encourage you to access the webcast and presentation material in the Investors section of CP’s website at investor.cpr.ca A replay of the second-quarter conference call will be available by phone through to July 30, 2019 at 416-849-0833 or toll-free 1-855-859-2056, password 8144989.
July 2 (Reuters) – Automakers including Fiat Chrysler Automobiles NV and Hyundai Motor Co on Tuesday reported a rise in U.S. sales for June, lifted by strong demand for sport utility vehicles and trucks.
Automakers have focused on selling the more profitable larger SUVs and trucks and had offered heavy discounts of up to 30% or more on their most popular models in June amid a slowdown in the broader market.
U.S. auto sales are slowing after a long bull-run that has satiated replacement demand.
Fiat Chrysler said its sales rose 1.9% to 206,083 vehicles in June, driven by a 45% surge in sales of its Ram trucks.
Hyundai said its sales rose 1.5% to 64,202 vehicles in the month, boosted by a 36% increase in sales of its Santa Fe sport utility vehicles.
GM and Ford are yet to report their sales numbers.
Mitsubishi Motors North America Inc said its June sales rose 10.5% to 12,317 vehicles due to an increase in sales of its seven-seater Outlander and Eclipse Cross SUV’s.
(Reporting by Ankit Ajmera in Bengaluru; Editing by Shinjini Ganguli and James Emmanuel)
July 1 (Reuters) – Canada’s Brookfield Asset Management Inc and Singaporean sovereign wealth fund GIC on Monday agreed to buy U.S. freight railroad owner Genesee & Wyoming Inc for about $6.4 billion in cash.
Brookfield and GIC’s offer of $112 per share represents a premium of 12 percent to Genesee’s closing price on Friday. Genesee shares were up about 8 percent in trading before the bell.
Including debt, the deal is valued at about 8.4 billion, the companies said in a statement.
Genesee & Wyoming’s revenue have increased at a compound annual growth rate of 16.8% since it floated in the stock market in 1996, rising to $2.3 billion in 2018 from $77.8 million, according to Genesee & Wyoming’s latest annual report.
The company owns a portfolio of 120 short-line railroads, predominantly in North America, with operations in Europe and Australia.
Reuters had reported on the deal on Sunday, citing sources.
The deal, which is expected to close by year end or early 2020, would be the latest big leveraged buyout by Brookfield, which agreed last year to buy Johnson Controls International Plc’s power solutions business for about $13 billion.
Citigroup Global Markets Inc served as the financial adviser to Brookfield and GIC, while BofA Merrill Lynch and Morgan Stanley & Co LLC advised Genesee.
(Reporting by Ankit Ajmera in Bengaluru; Editing by Anil D’Silva)
PARIS, June 17 (Reuters) – Boeing Co said on Monday it had no plans to change the name of the 737 MAX after news reports that it would be prepared to do so to improve its future marketing.
“Our immediate focus is the safe return of the MAX to service and re-earning the trust of airlines and the traveling public,” a spokesman said in an emailed statement.
“We remain open-minded to all input from customers and other stakeholders, but have no plans at this time to change the name of the 737 MAX.”
Bloomberg News earlier quoted Chief Financial Officer Greg Smith as saying that if Boeing needed to change the brand it would “address” that. The report also said Boeing executives insisted they had no immediate plans to drop the MAX name.
CNBC also reported the comments.
U.S. President Donald Trump urged Boeing on April 15 to “Rebrand” its 737 MAX jetliner following two fatal crashes.
(Reporting by Eric M. Johnson, Tracy Rucinski, Edited by Tim Hepher)
Embraer delivered 11 commercial jets and 11 executive jets (8 light / 3 large) in 1Q19.
The Company’s firm order backlog at the end of 1Q19 was US$ 16 billion considering all deliveries as well as firm orders obtained during the period.
EBIT and EBITDA in 1Q19 were US$ (15.2) million and US$ 30.9 million, respectively, yielding EBIT margin of -1.8% and EBITDA margin of 3.8%. This compares to EBIT of US$ (5.3) million (-0.6% EBIT margin) and EBITDA of US$ 57.8 million (6.0% EBITDA margin) in 1Q18.
1Q19 Net loss attributable to Embraer shareholders and Loss per ADS were US$ (42.5) million and US$ (0.23), respectively. Adjusted net loss (excluding deferred income tax and social contribution) for 1Q19 was US$ (61.8) million, with Adjusted loss per ADS of US$ (0.34). Embraer reported adjusted net loss in 1Q18 of US$ (60.5) million, for an adjusted loss per ADS of US$ (0.33) in the quarter.
Embraer reported Free cash flow of US$ (665.3) million in 1Q19, compared to free cash flow of US$ (435.2) million reported in 1Q18. The Company finished the quarter with total cash of US$ 2,483.4 million and total debt of US$ 3,587.1 million, yielding a net debt position of US$ 1,103.7 million versus net debt of US$ 439.9 million at the end of 2018.
The Company’s shareholders approved the proposed strategic partnership between Boeing and Embraer during an Extraordinary General Shareholders’ Meeting on February 26, 2019. At the meeting, 96.8% of all valid votes were in favor of the transaction, with participation of roughly 67% of all outstanding shares.
The closing of the transaction between Boeing and Embraer remains subject to obtaining regulatory approvals and the satisfaction of other customary closing conditions, expected by the end of 2019.
The Company reaffirms all aspects of its 2019 financial and deliveries guidance.
May 6 (Reuters) – Air Canada on Monday reported a surprise quarterly profit that sent shares up 4 percent in morning trading, helped by flying more passengers and its purchase of a loyalty program, despite rising costs from the global grounding of Boeing’s 737 MAX jets.
Canada’s largest carrier said it sees strong booking trends ahead of the busy summer season, and expects second quarter results in line with forecasts made before the March global suspension of the Boeing MAX in March following two fatal crashes involving the model.
Air Canada stock was up 4 percent, even as Canada’s main stock index fell at the open on Monday, after U.S. President Donald Trump threatened to raise tariffs on China, triggering a global rout in risky assets.
Air Canada Chief Executive Calin Rovinescu said the carrier, which operates 24 MAX jets, would return the planes to service based on its own safety assessment, in addition to regulators giving it the green light.
During the first three months of the year, Air Canada and other North American carriers that fly the MAX scrambled to replace flights following harsh weather and the plane’s grounding, while facing pressure from rising fuel costs.
“First quarter is always the most demanding for Canadian airlines,” Rovinescu said. “This year was an exception and it was made more so with the unexpected grounding of the 737 MAX.”
Air Canada canceled 1,600 mainline flights during the first three months of the year, a 40 percent increase compared to the first quarter of 2018, Rovinescu told analysts.
The company was able to protect most of its flights from the date of the grounding through April 30 by entering into new leases, among other strategies, he said.
For the first quarter, the company reported a 9.4 percent rise in total operating revenue to C$4.45 billion ($3.30 billion), beating analysts’ estimate of C$4.39 billion.
In January, Air Canada closed a deal to acquire the Aeroplan loyalty program.
Aeroplan revenue and strong demand drove a nearly 5 percent increase in passenger yield, the company said, even as cost per available seat mile (CASM) — a measure of how much an airline spends to fly a passenger — climbed 3.8 percent.
Air Canada said traffic rose 4.2 percent while passenger revenue per available seat mile, a key revenue measure for airlines, increased 4.5 percent in the first quarter.
The Montreal-based company reported an adjusted net income of C$17 million, or 6 Canadian cents per share, in the first quarter ended March 31, compared to a loss of C$26 million, or 10 Canadian cents per share, a year earlier.
Analysts’ on average had expected a loss of 18 Canadian cents, according to IBES data from Refinitiv. ($1 = 1.3467 Canadian dollars)
(Reporting by Allison Lampert and Shanti S Nair ; Editing by Sriraj Kalluvila and Bill Trott)
April 29 (Reuters) – Canadian National Railway Co reported a 6 percent rise in quarterly profit on Monday, as it transported higher volumes of petroleum and chemical products.
U.S. listed shares of the company rose 2.1 percent in after-hours trading.
The company’s net income rose to C$786 million, or C$1.08 per share, in the first quarter ended March 31, from C$741 million, or C$1 per share, a year earlier.
However, excluding one-time items, the railroad company earned C$1.17 per share, missing the analyst average estimate of C$1.18, according to IBES data from Refinitiv.
Canada’s largest railway operator said total carloads, the amount of freight loaded into cars, rose less than a percent.
Operating ratio, a closely watched productivity metric that measures expenses as a percentage of revenue, rose to 69.5 percent from 67.8 percent a year earlier. The lower the ratio, the more efficient a railroad.
($1 = C$1.34)
(Reporting by Arundhati Sarkar in Bengaluru; Editing by Maju Samuel)
NEW YORK–(BUSINESS WIRE) – JetBlue Airways Corporation (NASDAQ:JBLU) today reported its results for the first quarter 2019:
Reported diluted earnings per share of $0.14 in the first quarter of 2019 compared to $0.28 in the first quarter of 2018. Adjusted diluted earnings per share was $0.16 in the first quarter of 2019 versus $0.26 in the first quarter of 2018. Note A to this earnings release includes the GAAP to Non-GAAP reconciliation between reported and adjusted diluted earnings per share.
GAAP pre-tax income of $58 million, a decline of 48.5% from $113 million in the first quarter of 2018. Excluding the one-time costs, adjusted pre-tax income of $70 million(1), a decline of 38.2% from the first quarter of 2018.
Pre-tax margin of 3.1%, inclusive of the one-time costs, a 3.3 point decline from the first quarter of 2018. Adjusted pre-tax margin of 3.7%(1), a 2.7 percentage point decline year over year.
Highlights from the First Quarter 2019
First quarter 2019 revenue per available seat mile (RASM) declined 3.1%, year over year, driven by holiday calendar placement, improved completion factor and certain areas of softness observed in the trough period. Excluding the 0.75 point impact from high completion factor, RASM declined 2.4% year over year, slightly better than the mid-point of our guidance range of down (3.5%) to down (1.5%).
Operating expenses per available seat mile, excluding fuel (CASM ex-fuel) (1) increased 0.9%, below the low end of our initial guidance range of 1.5% to 3.5%. This increase includes a benefit of approximately 0.75 points from improved completion factor.
Key Guidance for the Second Quarter and Full Year 2019:
Capacity is expected to increase between 4.5% and 6.5% year over year in the second quarter 2019. For the full year 2019, JetBlue expects capacity to increase between 4.5% and 6.5%.
RASM growth is expected to range between 1.0% and 4.0% for the second quarter 2019 compared to the same period in 2018. Our guidance includes a benefit of 2.25 points of impact related to the calendar placement shift of Easter and Passover between the first and second quarters of 2019.
CASM ex-fuel is expected to increase between 1.5% and 3.5% for the second quarter of 2019, principally driven by engine maintenance timing and the year-over-year impact of the pilot contract effective on August 1st, 2018. For the full year 2019, JetBlue continues to expect year over year CASM ex-fuel to be between flat and 2.0%.
For further details see the latest Investor Update and the First Quarter 2019 Earnings Presentation available via the internet at http://investor.jetblue.com.
JetBlue will conduct a conference call to discuss its quarterly earnings today, April 23, 2019 at 10:00 a.m. Eastern Time. A live broadcast of the conference call will also be available via the internet at http://investor.jetblue.com.
Executing our Plan to Reach our EPS Commitments “We are very proud of our team and the work they do every day to deliver the JetBlue experience. This quarter our financial performance was mainly impacted by the calendar placement of Easter and Passover holidays and, as disclosed in March, a softer revenue environment than initially expected,” said Robin Hayes, JetBlue’s Chief Executive Officer.
“In recent years we have repeatedly demonstrated our ability to adapt to the changing environment around us to achieve our margin commitments – and 2019 is proving to be no different. We believe we will successfully execute our five ‘building blocks’ introduced at our 2018 Investor Day, and we remain committed to our goal of delivering earnings per share between $2.50 and $3 dollars by 2020. We also continue to expect margin expansion in 2019, and to further expand our margins in 2020.”
“We believe our work will position us for success into the next decade. Next year we anticipate the first delivery of our margin-accretive A220s, a game-changing aircraft to further help us reduce our unit costs, improve our margins and increase our EPS. We are thrilled that we recently converted 13 A321s in our order book to A321 LRs, and we expect to begin our European service by adding London from Boston and New York starting in 2021,” said Joanna Geraghty, JetBlue’s President and Chief Operating Officer.
Revenue Performance and Outlook
First quarter RASM declined 3.1% year over year. Excluding the 0.75 point headwind from improved completion factor, RASM was slightly better than the mid-point of our guidance range of down (3.5%) to down (1.5%). “Our RASM was negatively impacted by three drivers: this year’s holiday calendar placement, improved completion factor, and certain areas of softness we observed in the trough period,” said Marty St. George, JetBlue’s EVP Commercial and Planning.
“Looking into the second quarter, we expect RASM growth between 1.0% and 4.0% year over year. Our guidance includes an anticipated 2.25 point positive impact of Easter/Passover holiday placement shift into April. March RASM showed clear signs of a weaker trough, which extended into the first half of April. The April peak, however, is showing the strength we had expected, and very early look at May and June points to sequential RASM acceleration.”
Cost Performance, Outlook and Balance Sheet
“Our first quarter CASM ex-fuel represents a unit cost increase below the mid-point of our guidance range. For the second quarter, we expect CASM ex-fuel growth to range between 1.5% and 3.5%. As a reminder, both our first quarter and second quarter guidance include an approximately three-point impact from our pilot contract signed last August,” said Steve Priest, JetBlue’s EVP Chief Financial Officer.
“We could not be prouder of the hard work across JetBlue to deliver on our commitments to hit our goals. We are encouraged by the CASM ex-fuel progress we made in the first quarter, and the progression we anticipate for the rest of the year. In the first half we will continue to digest our first pilot contract, and despite our capacity reduction from early March, our guidance range remains between 0 and 2 percent.”
Capital Allocation and Liquidity
JetBlue ended the quarter with approximately $876 million in unrestricted cash, cash equivalents, and short term investments, or about 11.3% of trailing twelve month revenue. In addition, at the end of the quarter, JetBlue maintained approximately $625 million in undrawn lines of credit. JetBlue repaid $133 million in regularly scheduled debt and capital lease obligations for the first quarter.
Fuel Expense and Hedging
The realized fuel price in the quarter was $2.05 per gallon, a 2.0% decline versus first quarter 2018 realized fuel price of $2.09.
JetBlue entered into forward fuel derivative contracts to hedge approximately 7% of its fuel consumption for the second quarter of 2019. Based on the fuel curve as of April 12th, JetBlue expects an average all-in price per gallon of fuel of $2.21 in the second quarter of 2019.
About JetBlue
JetBlue is New York’s Hometown Airline®, and a leading carrier in Boston, Fort Lauderdale-Hollywood, Los Angeles (Long Beach), Orlando, and San Juan. JetBlue carries more than 42 million customers a year to 100+ cities in the U.S., Caribbean, and Latin America with an average of more than 1,000 daily flights. For more information please visit jetblue.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 which represent our management’s beliefs and assumptions concerning future events. When used in this document and in documents incorporated herein by reference, the words “expects,” “plans,” “anticipates,” “indicates,” “believes,” “forecast,” “guidance,” “outlook,” “may,” “will,” “should,” “seeks,” “targets” and similar expressions are intended to identify forward-looking statements. Forward-looking statements involve risks, uncertainties and assumptions, and are based on information currently available to us. Actual results may differ materially from those expressed in the forward-looking statements due to many factors, including, without limitation, our extremely competitive industry; volatility in financial and credit markets which could affect our ability to obtain debt and/or lease financing or to raise funds through debt or equity issuances; our significant fixed obligations and substantial indebtedness; volatility in fuel prices, maintenance costs and interest rates; our reliance on high daily aircraft utilization; our ability to implement our growth strategy; our ability to attract and retain qualified personnel and maintain our culture as we grow; our reliance on a limited number of suppliers; our dependence on the New York and Boston metropolitan markets and the effect of increased congestion in these markets; our reliance on automated systems and technology; our being subject to potential unionization, work stoppages, slowdowns or increased labor costs; our presence in some international emerging markets that may experience political or economic instability or may subject us to legal risk; reputational and business risk from information security breaches or cyber-attacks; changes in or additional domestic or foreign government regulation; changes in our industry due to other airlines’ financial condition; acts of war or terrorism; global economic conditions or an economic downturn leading to a continuing or accelerated decrease in demand for air travel; the spread of infectious diseases; adverse weather conditions or natural disasters; and external geopolitical events and conditions. It is routine for our internal projections and expectations to change as the year or each quarter in the year progresses, and therefore it should be clearly understood that the internal projections, beliefs and assumptions upon which we base our expectations may change prior to the end of each quarter or year.
Given the risks and uncertainties surrounding forward-looking statements, you should not place undue reliance on these statements. You should understand that many important factors, in addition to those discussed or incorporated by reference in this press release, could cause our results to differ materially from those expressed in the forward-looking statements. Potential factors that could affect our results include, in addition to others not described in this press release, those described in Item 1A of our 2018 Form 10-K under “Risks Related to JetBlue” and “Risks Associated with the Airline Industry”. In light of these risks and uncertainties, the forward-looking events discussed in this press release might not occur.
(Reuters)
– The U.S. Federal Aviation Administration is investigating Southwest
Airlines Co for widespread failure to accurately track the combined
weight of checked bags loaded onto its jets, the Wall Street Journal
reported on Monday.
The
U.S. aviation safety agency’s year-long civil probe found systemic and
significant mistakes with employee calculations and luggage-loading
practices, resulting in potential discrepancies when pilots compute
takeoff weights, the Journal reported, citing government officials and
internal agency documents
The
FAA has not decided whether to impose fines or any other punishment,
the report cited people familiar with the investigation as saying.
The
inaccuracies ranged from a few dozen pounds to more than 1,000 pounds
(450 kg) in excess of what the paperwork indicated, sparking disputes
between the company and some agency inspectors about potential safety
consequences, the report said.
A
company spokeswoman said there was an open Letter of Investigation
(LOI), which is a common mechanism for the FAA to document and share
safety interests or concerns with an airline.
The
airline has not been issued fines and faces no enforcement action
regarding its weight and balance program, Southwest spokeswoman Brandy
King said.
“In
this case, the LOI addresses an issue that Southwest voluntarily
reported to the FAA last year and since that time, Southwest has
implemented controls to address weight and balance program concerns, and
shared those measures with the FAA,” King said.
The FAA said in a statement it initiated a probe against Southwest in 2018 regarding weight and balance performance data.
“Since
that time, the FAA has directed the development of a comprehensive
solution to the methods and processes used by Southwest Airlines to
determine this performance data,” it said in the statement. “The FAA
will not close its investigation until it is satisfied that Southwest’s
corrective actions are consistent and sustained.”
(Reporting by Rama Venkat in Bengaluru; Editing by Bernadette Baum and Peter Cooney)
Hyatt Hotels Corporation (H) posted mixed third-quarter 2018 results, wherein earnings surpassed the Zacks Consensus Estimate while revenues lagged the same. With this, the bottom line exceeded the consensus mark for 11 straight quarters, while the top line lagged the same for the third consecutive quarter.
Adjusted earnings of 33 cents per share outpaced the consensus estimate of 25 cents by 32%. The bottom line also grew 37.5% on a year-over-year basis. Total revenues of $1,074 million inched up 0.5% from the prior-year quarter figure but missed the consensus estimate of $1,092 million.
