30 January 2007
Higher Freight Revenue Lifts CP Rail's Profit
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CP Rail's Q4 profit rises to $145.6M, 2006 earnings up 47% at
$796M.
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Canadian Pacific Railway says its fourth-quarter
profit rose six percent to $145.6 million from a year-earlier $137.1 million.
Earnings for the quarter ended 31 Dec 2006 amounted to 92 cents a diluted share, compared with 86 cents per share a year
ago, the Calgary-based company reported Tuesday. Excluding foreign exchange losses on long-term debt and
other one-time items, the rail carrier said its earnings were $1.15 per diluted share.
Analysts' consensus forecast was for earnings of $1.16 per share, before one-time items, according to Thomson Financial.
For the full year, net income jumped 47 percent to $796 million or $5.02 per share, including a tax benefit of $176 million as a
result of a decrease in Canadian federal and provincial income tax rates. Excluding items, CP Rail said it annual earnings were $3.95
per diluted share.
The analysts' forecast was for annual earnings of $3.96 a share, before one-time items.
Revenue for the three months ended 31 Dec 2006 were $1.19 billion, up from a year-earlier $1.17 billion.
"I'm pleased with the financial results," CEO Fred Green said in a release.
"We focused on cost containment and improving the fluidity of our operations and, with our diversified customer portfolio, we
delivered strong results while overcoming a drop in coal revenues of $137 million."
Revenue for the full year grew four percent to $4.58 billion from $4.27 billion in 2005.
CP Rail confirmed its guidance for diluted earnings per share in 2007 between $4.30 and $4.45 and revenues are expected to grow
between four and six percent in 2007. The carrier expects capital spending between $885 million and $895 million.
"It is early in the year and there are many factors in play," said Green.
"Rail fundamentals remain strong, although our operating team has been tested with very tough winter operating conditions and
there is softening in some sectors of the North American economy. At the same time, we are seeing fluctuating fuel prices and a
weakening Canadian dollar."
Editor: When are journalist going to stop calling Canadian Pacific Railway, CP Rail? Nag, nag,
nag...
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