(The Associated Press circulated the following article on March 20.)
NEW YORK — Canadian Pacific Railway Ltd. on Monday reaffirmed its 2006 earnings outlook after a customer said it expected to ship less coal in the first quarter.
Earlier Monday, Fording Canadian Coal Trust forecast lower sales volumes in the first quarter due to high inventory levels at customer plants and some substitution of hard coking coal with other cheaper coals.
Canadian Pacific serves all the mines in southeastern British Columbia owned by Elk Valley Coal Partnership, in which Fording holds a 60 percent stake.
The railroad reiterated its plan for earnings of $3.60 to $3.85 per share for the year.
Analysts, on average, project earnings of $3.21 per share in 2006. Canadian Pacific said it will adjust its crew and equipment requirements according to coal volumes.
Shares of Canadian Pacific dipped 68 cents to $50.19 in midday trading on the New York Stock Exchange. Fording Canadian shares fell $2.30, or 5.4 percent, to $40.44 on the Big Board. Fording Canadian stock has traded within a 52-week range of $24.77 to $45.15.