22 March 2007
Canadian Pacific Says Fording's Coal Sales Expectations In-Line with Guidance
Canadian Pacific re-confirmed its guidance today in
response to the recent announcement by Fording Canadian Coal Trust of its range of coal sales for the calendar year 2007. Fording's
forecast is in-line with CP's business model, and 2007 earnings guidance of $4.30 to $4.45 per diluted share, (excluding
the impact of foreign exchange gains and losses on long-term debt and other specified items) remains unchanged, in spite
of weather related first-quarter challenges.
"The recent announcement from Fording is good news for Canadian Pacific," said Fred Green, President and CEO. "Their
coal sales forecast combined with the need to rebuild depleted inventories at port are consistent with our expectation to handle
approximately 2 million incremental metric tonnes of coal for Elk Valley Coal Partnership this year compared with 2006.
CPR serves all of the mines in southeastern British Columbia owned by Elk Valley Coal Partnership (EVC), in which Fording has a 60
percent interest.
"Our rail operations have experienced a tough start to 2007," added Mr. Green. "The affirmation of coal sales targets by
Fording combined with continued strong demand in other sectors gives us confidence that we will overcome our
first-quarter challenges."
Mr. Green will provide a 2007 CP business update on 22 Mar 2007 at 08:00 EDT at the JP Morgan Aviation and Transportation
Conference in New York City. There will be a live audio webcast of Mr. Green's presentation. The webcast, as well as the presentation
materials, are available in the Investor section of CPR's website.
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