13 November 2008
Canadian Pacific Drives for Greater Efficiency
Canadian Pacific will hold its Investor Conference today in
Toronto. The workshop will be webcast live from 12:30 p.m. to 4:30 p.m. Eastern time (10:30 a.m. to 2:30 p.m. Mountain time).
"Canadian Pacific is driving greater efficiency into all aspects of the business," said Fred Green, President and Chief
Executive Officer. "We are accelerating our efficiency efforts and will continue with our disciplined approach to pricing and
yield to deliver value to our shareholders despite the uncertainty of the economic climate."
"Canadian Pacific plans capital investment in 2009 consistent with the current economic conditions," said Kathryn McQuade,
Executive Vice President and Chief Financial Officer. "We are pacing our capital investments to match the needs of our customers,
and this will result in a significant reduction in our 2009 capital spending when compared with previous years."
Capital investment is expected to be in the range of $800 million to $820 million which is a reduction of approximately $200 million
when compared with the combined CP and Dakota Minnesota & Eastern Railroad (DM&E) expected capital spend for the full year
2008. This outlook assumes an average currency exchange rate of $1.17 per U.S. dollar (US$0.85).
Included in this capital plan is basic renewal of track infrastructure and the locomotive fleet, year one of a multi year intermodal
terminal build at Regina, as well as pilot technology projects linked to the Railway of the Future program. Also included is US$100
million for upgrading the DM&E infrastructure which is consistent with the plans that were announced with the acquisition.
A live audio webcast of today's Investor Conference and all presentation slides will be available on the Investors section of CP's
website, www.cpr.ca. The webcast and presentation slides will also be archived
on the website.
Canadian Pacific 2009 guidance includes capital investment plans only.
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