(The Canadian Press circulated the following story on April 27.)
CALGARY — Canadian Pacific Railway says its first-quarter profit slumped to $24 million, from $102 million a year earlier, as bad weather and a weak U.S. dollar ate into earnings.
For the quarter ended March 31, basic earnings per share fell to 15 cents from 64 cents, the Calgary-based firm reported Tuesday.
The railway (TSX:CP) cited a net loss of $14 million in foreign exchange on long-term debt in the first quarter of 2004, compared with a net gain of $64 million in the same period a year earlier.
With a stronger Canadian dollar reducing U.S. dollar-denominated income, revenue was cut by about $59 million, operating expenses by $46 million and operating income by about $13 million.
Total revenue was $887 million, compared with $879 million in the same period a year earlier.
“The worst avalanche in eight years and severe weather early in the quarter hit us hard in our western corridors over a two-week period,” CEO Rob Ritchie said in a release.
“With heavy freight volumes fully consuming available capacity, there was no opportunity to recover the lost volumes in the quarter. This took approximately $25 million out of operating income and cost us about $0.10 on earnings per share.”
He added that the railway rebounded well and exited the quarter “with very strong business fundamentals.”
CP Rail’s operating income in the first quarter was $116 million, down from $118 million.
Revenues in the bulk commodity sector increased $19 million, or five per cent, as a result of strong demand from Pacific Rim countries for raw materials.