30 October 2007
Canadian Pacific Reports 34% Increase
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Royal Canadian Pacific crossing Ottertail
bridge.
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Canada's second-largest railway said it earned a
third-quarter profit of $219 million or $1.41 per share compared with a profit of $164 million or $1.04 per share a year
ago.
Quarterly revenue also improved, up from $1.15 billion in the third-quarter last year to $1.19 billion.
Helping to boost the results was a foreign exchange gain on long-term debt of $64 million in the quarter, compared with $2
million in the third quarter of 2006.
Full-Year Earnings
However, the company warned its earnings for the full-year could be at the low end of its guidance due to the strong
loonie and high fuel prices.
"CP has delivered growth of twelve percent year-to-date on our adjusted diluted EPS (earnings per share) through
execution excellence and focused expense control," Mike Lambert, the company's chief financial officer said in a statement.
Canadian Pacific said it was also taking a $21 million write down on the $144 million it had invested in the troubled
asset-backed commercial paper market.
Like its larger rival CN, a slowdown in the forestry sector was a drag on earnings as well, with volumes decreasing by 21
percent.
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