MONTREAL — Canadian Pacific Railway said on Thursday it was forecasting a 3 to 4 percent sales growth for fiscal 2003, despite continued low grain shipments from Western Canada, reports Reuters.
“What we are seeing is the railways in Canada coming back,” president and chief executive Rob Ritchie told reporters after a speech in Montreal.
Western Canada’s grain crop was hit hard by last summer’s drought, the worst in some areas since the Dust Bowl of the 1930s. Canadian Pacific, along with larger rival Canadian National Railway (Toronto:CNR.TO – News) saw shipments of grain exports to the United States and to western ports slashed as a result.
“It is pretty hard to fall when you are already lying face down on the floor,” Ritchie said.
“I am optimistic. It is raining in certain sections of the Canadian Prairies. In the southern part of the Canadian Prairies, they have got more than their average amount of moisture,” he added.
Ritchie declined to answer questions on earnings forecast for 2003. The firm had 3 percent to 5 percent earnings growth forecast for fiscal 2002.
“I don’t know which way the economy is going. It is misleading,” he said.
Ritchie also said he was expecting a “very strong” fourth quarter in sales, despite a fall in grain and coal shipments. Revenues in the third quarter were C$917 million, up from C$898 million in the third quarter of 2001.
“There is considerable strength in the economy over the fourth quarter,” he said.
CP Rail, one of five companies spun off last year in the breakup of former conglomerate Canadian Pacific, said it was not forecasting layoffs in 2003. Canadian National announced last month it was cutting 1,146 jobs.
“We are pretty lean right now,” Ritchie told reporters. “I want to hire employees. I don’t want to be laying off any more.” ($1=$1.56 Canadian)