(The CBC posted the following article on its website on January 27.)
CALGARY — Canadian Pacific Railway said its fourth-quarter earnings got a boost from a better grain crop and strong demand for coal and sulphur.
The company said Tuesday it made $175 million ($1.10 a share) up from $126 million (79 cents a share) in the fourth quarter of 2002.
CP’s revenues were $964 million, compared with $950 million in the same period a year earlier.
A recovery in the bulk commodity sector that began late in third-quarter 2003 continued through the fourth quarter, the company said. “An improved Canadian grain crop, strong demand for coal and sulphur, and robust potash markets saw revenue in CPR’s bulk sector increase by $40 million, or 11 per cent,” CP added.
CP said the stronger Canadian dollar reduced its revenues by about $80 million and its operating income by $24 million, while operating expenses were cut by $56 million.
The company said the negative impact of the rise in the loonie was largely offset by a reduction in the cost of long-term debt denominated in U.S. dollars. CP said it has arranged more than three-quarters of its long-term debt in U.S. dollars as a natural currency hedge.
“We prepared for a very strong fourth quarter by increasing capacity,” Rob Ritchie, CP’s president and CEO, said.
“Track maintenance work was accelerated, new locomotives and freight cars were acquired and more train crews were hired. Across the CPR network, freight volumes hit a record high and our bulk commodity exports off the West Coast reached unprecedented growth rates,” Ritchie said.
For the full year, CP made $399 million ($2.51 a share) compared with $496 million ($3.11 a share) a year ago.