26 July 2006
CP Rail Profit Triples
Canadian Pacific Railway says its second-quarter
profit tripled to $378-million, thanks to a big tax-related gain.
Net income for the quarter ended 30 Jun 2006 amounted to $2.36 a diluted share and compared with $123-million
or 77 cents per share a year earlier, the Calgary-based company reported Tuesday.
The increase included a $176-million reduction in future income tax expense and a favourable swing of
$58-million for foreign exchange on long-term debt.
Revenue rose to $1.13-billion from $1.11-billion.
"CPR faced down a tough second quarter where we saw a reduction of more than $70-million in coal and potash revenues
associated with world markets and still produced solid earnings growth," CEO Fred Green said in a release.
"We responded quickly to the drop in volumes with focused initiatives which produced improved yield and reduced expenses. With the
success of our balanced scheduled railroad and our recent network capacity investments, we are well positioned for the second half of
the year when bulk volumes are expected to increase."
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