30 July 2009
CPR Profit Makes Slim Gain
Calgary Alberta - Canadian Pacific Railway Ltd.
rolled to a small improvement in its second quarter profits as the company continued to grapple with lower revenues because of the
recession.
The company said it made $157 million in the quarter. In the same quarter of last year, the company made $155 million.
CPR said lower freight volumes were offset by a net after-tax gain on the sale of a portion of its interest in the
Detroit River Tunnel Partnership of $69 million.
Revenues during the quarter dipped to $1.02 billion from $1.22 billion, as overall freight revenues slipped more than 18 percent to
$972.5 million.
"The recession continues to have a significant impact on our business and although freight volumes appear to have stabilized, we
have not yet seen a sustained recovery in traffic," said CPR president and CEO Fred Green. "In this economic climate, we
continue to manage what is in our control and I am pleased with our cost management efforts."
"Our goal is to make sustainable reductions in our overall cost structure and strengthen our balance sheet," Green said.
CPR said it expects its capital program in 2009 to be in the range of $800 million to $820 million, which is an increase from the
previous outlook of $720 million to $740 million. The company said the increase is a result of a buyout of operating
leases.
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