(The Canadian Press circulated the following on December 12.)
CALGARY — Canadian Pacific Railway Ltd. said Wednesday that its earnings for 2007 “may be at the bottom of, or even below” its previously forecast range of $4.30 to $4.45 per share.
The country’s second-largest rail operator blamed harsh weather in the West and high fuel prices, but said its outlook for 2008 is unchanged.
“With these stronger than expected headwinds in the fourth quarter, there is a risk that earnings growth may not reach the level that we expected for 2007 of nine per cent to 13 per cent,” stated CEO Fred Green.
“However, with a focus on execution excellence and cost management, we remain confident we will deliver our earnings target in 2008 of $4.70 to $4.85 (per share).”
Chief financial officer Mike Lambert cited “higher than anticipated WTI (west Texas intermediate crude oil) prices and the 30-day lag between our fuel expenses and our fuel recovery,” along with “the severe weather patterns we experienced in British Columbia in early December.”