28 January 2010

Canadian Pacific Profit Rises

The Royal Canadian Pacific exits the lower Spiral Tunnel near
Field, British Columbia.

Calgary Alberta - Canadian Pacific Railway Ltd. says profit was higher in the fourth quarter, but revenue slipped by 16 percent as it endured a challenging economy.
 
The Calgary-based railway company said Thursday its profit in the final three months of last year rose to $194-million from $188-million for the comparable period ended 31 Dec 2009.
 
On a per-share basis, however, the company's diluted earnings fell to $1.15 from $1.21 in the fourth quarter when there were fewer shares outstanding.
 
Earnings excluding items like foreign exchange gains and losses on long-term debt were 94 cents, compared to $1.07 a year earlier.
 
Those adjusted results were above an estimate of 88 cents per share, according to a survey of 12 analysts by Thomson Reuters.
 
Total revenue was down 16 percent, falling to $1.1-billion from $1.3-billion.
 
"We have come through an extraordinary year of economic challenges and we met these with focused productivity initiatives that have delivered sustainable improvements," said president and chief executive officer Fred Green in a release.
 
"Markets remain uncertain and we will continue to drive efficiency while delivering a reliable service. We are positioned with assets and resources to respond to changes in our customers' demand."
 
During the quarter, the company reduced its operating expenses at an even faster pace than its revenue declined. Expenses were off 17 percent to $853-million from $1-billion.
 
Operating income slipped 12 percent to $269-million.
 
Canadian Pacific said it plans capital spending of between $680-million and $730-million this year, with about $585-million dedicated to renewing the company's track infrastructure.
 
For the full-year, Canadian Pacific said profits were slightly higher at $612.4-million from $607.2-million in 2008.
 
Total revenue slipped 18 percent to $4.3-billion from $5.2-billion.