Canadian Pacific profits rise

International Railway Journal, March, 2008

CANADIAN Pacific Railway (CP) saw full-year profits rise by 7% to $C 673 million ($US 674 million) last year, helped by lower tax levels in Canada, growth in railfreight, and exchange rate fluctuations cutting the cost of long-term debt.

Freight revenue in the fourth quarter, excluding the impact of foreign exchange rates, rose by 5%, but a rise in the value of the Canadian Dollar saw actual revenue drop by 1% to $C 1.14 billion. Operating expenses rose to $C 883 million in the fourth quarter, compared with $C 870 million for the same period in 2006.

CP's operating ratio improved slightly to 75.3% from 75.4%, while diluted earnings per share rose by 9% to $C 4.32. Total revenue for 2007 was $C 4.7 billion, a rise of 3%. President and CEO, Mr Fred Green, said: "We continue to see strong demand in our bulk portfolio for 2008. This, coupled with improved yield and a renewed focus on our integrated operating plan, will drive results."