04/19/2017 12:48 EDT | Updated 04/19/2017 13:00 EDT

Canadian Pacific Railway revenues rise but earnings per share drop 17%

CALGARY — Canadian Pacific Railway (TSX:CP) is reporting slightly higher first-quarter revenue but net income that fell 20 per cent to $431 million.

The Calgary-based railway says revenues increased one per cent in the three months ended March 31 to $1.603 billion, up from $1.591 billion in the same period last year.

Net income fell from $540 million in the first quarter of 2016, due mainly to a higher non-cash foreign exchange loss in the earlier period.

Diluted earnings per share fell 17 per cent to $2.93 from $3.51.

CP Rail says its operating ratio — a measure of efficiency that balances revenue with expenses — improved by 80 basis points to 58.1 per cent from 58.9 per cent, in part due to a $51-million recovery in the quarter associated with the earlier-than-expected departure of former CEO Hunter Harrison.

But its adjusted operating ratio, which doesn't include the gain, increased by 240 basis points to 61.3 per cent.