PRZOOM - /newswire/ -
Calgary, Alberta, Canada, 2011/04/21 - Canadian Pacific Railway Limited (TSX: CP) (NYSE: CP) announced its first-quarter 2011 results. TSX, NYSE: CP
Reported net income in the first-quarter was $33.7 million and diluted earnings per share were $0.20. As previously announced, operations were impacted by unusually severe winter weather decreasing shipping volumes and increasing costs.
• Q1 2011 Earnings Release and Financial Reports
"We are intensely focused on improving network velocity and service reliability," said Fred Green, President and Chief Executive Officer. "Demand is strong and we have additional resources coming online to meet our customers' growth."
FIRST-QUARTER 2011 RESULTS COMPARED WITH FIRST-QUARTER 2010
• Total revenues were $1.2 billion, essentially flat;
• Operating expenses were $1.1 billion, an increase of $94.0 million;
• Average fuel price was $3.12 U.S. dollars per U.S. gallon, an increase of 28 per cent;
• Operating income was $109.2 million, a decrease of $97.4 million;
• Net income was $33.7 million, a decrease of $67.3 million;
• Diluted earnings per share were $0.20 per share, a decline of $0.40 per share.
"The first quarter was an extremely difficult winter with weather-related outages significantly constraining our capacity and our service to our customers," added Fred Green. "We remain committed to delivering our two- to four-year target of a low 70's operating ratio and providing a quality service offering."
Note on forward-looking information
This news release contains certain forward-looking statements relating but not limited to our operations, anticipated financial performance and business prospects. Undue reliance should not be placed on forward-looking information as actual results may differ materially.
By its nature, CP's forward-looking information involves numerous assumptions, inherent risks and uncertainties, including but not limited to the following factors: changes in business strategies; general North American and global economic, credit and business conditions; risks in agricultural production such as weather conditions and insect populations; the availability and price of energy commodities; the effects of competition and pricing pressures; industry capacity; shifts in market demand; changes in laws and regulations, including regulation of rates; changes in taxes and tax rates; potential increases in maintenance and operating costs; uncertainties of litigation; labour disputes; risks and liabilities arising from derailments; transportation of dangerous goods, timing of completion of capital and maintenance projects; currency and interest rate fluctuations; effects of changes in market conditions and discount rates on the financial position of pension plans and investments, including long-term floating rate notes; and various events that could disrupt operations, including severe weather conditions, security threats and governmental response to them, and technological changes.
Except as required by law, CP undertakes no obligation to update publicly or otherwise revise any forward-looking information, whether as a result of new information, future events or otherwise.
About Canadian Pacific
Canadian Pacific (cpr.ca) operates a North American transcontinental railroad providing freight transportation services, logistics solutions and supply chain expertise. Incorporating best-in-class technology and environmental practices, CP is re-defining itself as a modern 21st century transportation company built on safety, service reliability and operational efficiency. Visit the website and see how Canadian Pacific is Driving the Digital Railway.
Contacts Investor: Janet Weiss - T: 403-319-3591 / E: investor[.]cpr.ca.