(Reuters circulated the following on October 27, 2009.)
TORONTO — Canadian Pacific Railway Ltd (CP.TO) reported a 22 percent drop in its third-quarter operating profit on Tuesday, as cost control measures failed to fully offset the impact of lower traffic volumes.
The company, which operates in both Canada and the northern United States, said operating income fell to C$144 million, or 85 Canadian cents pa share, for the quarter ended Sept. 30, down from C$184 million, or C$1.19, a year earlier.
Canada’s No. 2 railroad said the latest quarter results and its year-ago results included certain one-time items related to its long-term debt. The company’s third-quarter 2009 results also benefited from a gain related to two property sales.
Including one-time items, net income rose to C$195 million, or C$1.16 a share, from C$171 million, or C$1.10 a share.
Quarterly revenue fell 20 percent to C$1.1 billion.
Last week, Canadian National Railway Co (CNR.TO), CP’s bigger domestic rival, posted a 13 percent drop in third-quarter profit as deep cost cuts helped cushion the impact of the economic recession.
($1= $1.06 Canadian)