CALGARY - Canadian Pacific Railway Ltd. is forecasting adjusted earnings growth in 2020 despite a sharp drop in profits in the second quarter.

The Calgary-based railway beat expectations even though its net income decreased 12.3 per cent to $635 million in the quarter.

That equalled $4.66 per diluted share, down from $5.17 per share of $724 million a year earlier.

Adjusted net income was $553 million or $4.07 per share for the three months ended June 30, compared with $602 million or $4.30 per share in the second quarter of 2019.

Revenues were $1.79 billion, down 9.4 per cent from $1.98 billion in the prior year quarter.

CP Rail was expected to report $3.78 per share in adjusted earnings on $1.76 billion of revenues, according to financial markets data firm Refinitiv.