Canadian Pacific Profit Misses on Delayed Grain Harvest

Canadian Pacific Railway Ltd reported lower-than-expected quarterly results and cut its full-year earnings forecast, due mainly to a delayed grain harvest and lower crude oil volumes.

The company said it now expects 2016 profit to grow in the mid-single-digits, compared to the double-digit growth it had expected in June.

U.S.-listed shares of the company were down 2.9 percent at $148.91 in light premarket trading.

"Given the delayed grain harvest, lower crude volumes and persistent economic challenges compounded by a strengthening Canadian dollar, we are now expecting mid-single-digit EPS growth this year," CP's Chief Executive Hunter Harrison said.

Revenue fell more than 9 percent to C$1.55 billion ($1.18 billion), missing analysts' estimates of C$1.61 billion, according to Thomson Reuters I/B/E/S.

However, a 6.2 percent fall in costs helped the company post a higher quarterly profit.

The company said its profit rose to C$347 million, or C$2.34 per share in the third quarter ended Sept. 30, from C$323 million, or C$2.04 per share, a year earlier.

Excluding items, the company earned C$2.73 per share, below estimates of C$2.79.

Reporting by John Benny in Bengaluru