(Reuters circulated the following article on January 30.)
TORONTO — Canadian Pacific Railway reported a 6-percent rise in fourth-quarter profit on Tuesday, thanks to improved freight revenue for the country’s second-largest railway company.
CP Rail earned C$146 million ($124 million), or 92 Canadian cents a share diluted, in the three months ended Dec. 31, up from a net profit of C$137 million, or 86 Canadian cents, a year earlier.
Freight revenue grew 2.4 percent, to C$1.2 billion. Grain revenue increased 17 percent, sulphur and fertilizer revenue gained 19 percent, but coal revenue dropped 16 percent.
Operating ratio improved by 80 basis points to 73.1 percent.
For 2007, the company expects diluted earnings per share of between C$4.30 and C$4.45, an increase of 9 to 13 percent, excluding foreign exchange gains and losses on long-term debt and other specified items.
Revenue is expected to grow by 4 to 6 percent in the year, while capital investment is expected to be between C$885 million and C$895 million.
CP Rail said its outlook assumes oil prices averaging $58 a barrel and an average currency exchange rate of C$1.15 per U.S. dollar.