(The Canadian Pacific Railway issued the following on January 26, 2011.)
CALGARY, Alberta — Canadian Pacific Railway Limited announced its fourth-quarter and full-year 2010 results today. Revenue in the fourth-quarter increased 13 per cent with gains across all lines of business. Reported net income in the fourth-quarter was $186 million, an increase of 27 per cent and diluted earnings per share was $1.09 for the quarter and $3.85 for the full year. Adjusted diluted earnings per share was $1.12 for the quarter and $3.87 for the full year.
“Fourth quarter saw double digit revenue growth, a continuation of our year-to-date trend,” said Fred Green, President and Chief Executive Officer. “We delivered an improvement in our operating ratio by staying focused on three priorities: safety, asset velocity, and productivity. During the year we once again improved our industry leading train safety performance, a great accomplishment while moving a significant increase in volumes.”
FOURTH-QUARTER 2010 RESULTS
• Total revenues increased 13 per cent to $1.3 billion
• Adjusted operating income increased 34 per cent to $298 million
• Adjusted operating ratio improved 360 basis points to 77.0 per cent
• Adjusted diluted earnings per share increased 51 per cent to $1.12 per share
FULL YEAR 2010 RESULTS
• Total revenues increased 13 per cent to $5.0 billion
• Adjusted operating income increased 39 per cent to $1.1 billion
• Adjusted operating ratio improved 410 basis points to 77.6 per cent
• Adjusted diluted earnings per share increased 54 per cent to $3.87 per share
• Made a pension prepayment of $650 million and reduced long-term debt by approximately $250 million
• Increased the current dividend rate by 9% to $1.08 per share
“We continue to see strong demand for rail service across all lines of business,” added Fred Green. “We are ramping up our resources and making long-term investments in our company to meet growing demand, further improve customer service, and achieve our three to five year target of a low 70’s operating ratio.”
2011 Assumptions
The 2011 defined benefit pension contributions are currently estimated to be between $100 million to $125 million, lower than our previous estimates of $150 million to $200 million. Defined benefit pension contributions for 2012 to 2015 are estimated to be between $125 million to $175 million. The contribution levels reflect the Company’s intention with respect to application of voluntary prepayments. Defined benefit pension expenses in 2011 are expected to be $46 million up from $36 million in 2010.
CP plans to spend in the range of $950 million to $1.05 billion on capital programs in 2011, as announced on January 12, 2011.
CP expects its tax rate to be in the 24 per cent to 26 per cent range in 2011.
About Canadian Pacific
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