Calgary Alberta - Canadian Pacific Railway Ltd. reported a record fourth-quarter and full-year result on Wednesday, and said it was preparing to surpass those milestones in 2014.
 
CP reported an adjusted net income for the fourth quarter of $338-million, or $1.91 a share, excluding a one-time $257-million after-tax write down on the sale of part of its Dakota Minnesota & Eastern Railroad during the quarter.
 
The results were up nearly 50 percent from the $214.6-milllion, or $1.28 a share, adjusted net income CP reported for the final quarter of 2012, and just shy of analysts' expectations of $1.92 a share, according to Bloomberg figures.
 
"Once again, Canadian Pacific and its outstanding team of railroaders delivered solid results this quarter, closing a historic year with record-setting operational and financial performance," said Hunter Harrison, CP chief executive, in a statement.
 
Shares in the company rose 2.9 percent in early trading Wednesday to $162.74 as of 10:33 a.m.
 
The company reported revenue growth of 7 percent during the quarter to $1.6-billion.
 
CP's operating ratio, an important gauge of the company's profitability measuring its operating costs as a percentage of revenue, also hit a record during the quarter of 65.9 percent, a near 9 percentage point improvement compared to last year, despite harsh winter weather during the quarter.
 
CP's operating ratio for 2013 as a whole was also an all-time high at 69.9 percent, a 7.1 percentage point improvement year over year, the company said.
 
The company said it was expecting an operating ratio of 65 percent or lower in 2014, roughly two years ahead of the schedule it set out when Mr. Harrison was appointed CEO in 2012.
 
It also said it expected revenue to grow between 6 percent and 7 percent in 2014, and diluted earnings per share to grow by 30 percent year over year this year compared to last.
 
CP reported an adjusted net income of $.1.1-billion, or $6.42 per diluted share, in 2013, a 48 percent improvement year over year.
 
Its revenue also rose 8 percent to a new record in 2013 of $6.1-billion.
 
"The transformational pace of change at CP has definitely exceeded expectations," Mr. Harrison said.
 
"We entered 2013 with an aggressive agenda of change and financial targets that would put us squarely in the path of achieving our goal of once again becoming an industry leader."
 
"This journey is far from complete. Riding this positive momentum, I fully anticipate that 2014 will be another year of solid returns for our shareholders," he added.
 
Scott Deveau.
 
Editor's Notice:  Article abridged - a financial analyst's predictions deleted.