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22 March 2007

Canadian Pacific Says it Will Weather Tough First Quarter

 
Green, Canadian Pacific CEO, speaks to the media following the company's annual meeting in Calgary on 5 May 2006.
 
Despite what it says has been a rough start to its year, Canadian Pacific has reconfirmed its annual profit forecast.
 
The company said Wednesday after stock markets closed that it still expects to make a profit of between $4.30 and $4.45 per diluted share, after factoring out the effect of foreign currency fluctuations and other items.
 
"Since the beginning of the year, we have experienced near-record snow pack in the mountains, flooding in the Midwest, and most recently, elevated rainfall and an accelerated melt in our western corridor," said Fred Green, CP's president and CEO.
 
"These conditions have combined to produce snow and mud slides and wash-outs that have, in various locations, closed both the Trans-Canada Highway and our railway. These weather-related conditions, along with impacts at the Port of Vancouver related to the strike at CN, have affected the operational fluidity of CP's rail network this quarter."
 
Green said that while the company's profits are expected to come in as forecast, he warned that first-quarter revenues will be softer than forecast.
 
CP said a recent healthy outlook from Fording Canadian Coal Trust should help the railway overcome its first-quarter challenges.
 
CP serves all of the mines in southeastern British Columbia owned by Elk Valley Coal Partnership, which is 60 percent owned by Fording.
 
Shares of CP lost 47 cents at $63.86 on the TSX.
 
 
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