(Reuters circulated the following article on March 21.)
VANCOUVER, British Columbia — Canadian Pacific Railway Ltd said on Wednesday that tough winter weather in Western Canada and the U.S. Midwest will weaken its results in the first quarter.
CP Rail said it is still confident it will meet its earnings guidance for 2007 of C$4.30 to C$4.45 per diluted share, and was pleased by the sales forecast announced on Wednesday by Fording Coal Trust, its largest coal shipper.
Heavy snowfall and rain in the mountains of British Columbia have produced avalanches and landslides on CP’s main line, including one that hit near Boston Bar on Tuesday and was expected to take at least 24 hours to clean up.
Canadian Pacific said it was also hurt by shipping delays caused by the strike at larger rival Canadian National Railway. The railroads share track operations in parts of British Columbia and Ontario.
“These weather related conditions, along with impacts at the Port of Vancouver related to the strike at CN, have affected the operational fluidity of CP’s rail network this quarter,” Chief Executive Fred Green said in a statement.