(Reuters circulated the following article on July 26.)
TORONTO — Canadian Pacific Railway Ltd. said on Tuesday second-quarter earnings rose 46 percent, as stronger freight revenue more than made up for higher fuel costs.
Canadian Pacific earned C$123 million ($101 million), or 77 Canadian cents per share, up from year-earlier C$84 million, or 53 Canadian cents a share.
Excluding foreign exchange losses on long-term debt, earnings per share would have been 87 Canadian cents, the company said.
Analysts surveyed by Reuters Estimates were looking for CP Rail to report earnings of between 78 Canadian cents and 91 Canadian cents a share. The average estimate was 83 Canadian cents a share.
The company, which operates in Canada and the United States, said revenue rose 10 percent to C$1.1 billion in the period, driven by increased coal, grain, and intermodal shipping.
CP Rail’s operating ratio, a measure of efficiency used by the railroad industry, improved to 75.5 percent from 78 percent in the second quarter 2004.
Operating expenses rose 6.5 percent, mostly because of soaring fuel prices.
CP said it expects revenue to grow in the range of 12 percent to 14 percent in 2005.
Diluted earnings per share are expected to be in the range of C$3.15 to C$3.25, excluding foreign exchange gains and losses on long-term debt and other specified items, and assuming steady oil prices and U.S.-Canada exchange rates.
The company’s shares finished at C$44.50 on the Toronto Stock Exchange on Monday. ($1=$1.22 Canadian)