Canadian Pacific Railway 4th quarter net income declined
Canadian Pacific Railway’s fourth quarter net income declined to C$129 million ($104 million) from C$174 million for the same period last year. For the full year, though, CPR’s net income increased slightly to C$413 million ($333 million) from $401 million in 2003.
CPR’s operating income for the fourth quarter rose to C$233 million ($188 million), compared with C$222 million for the same period in 2003. Revenues increased to C$1 billion ($800 million) from C$963 million.
The railway reported its full year operating income at C$717 million ($578 million) up from C$486 million in 2003. For the full fiscal year, revenues increased to C$3.9 billion ($3.1 billion) from C$3.7 billion.
CPR’s net income figures for the fourth quarter and full year 2003 had to be restated due to the implementation of new accounting rules under Canadian Generally Accepted Accounting Principles (GAAP) for asset retirement obligations introduced in the first quarter of 2004. The impact of the restatement is a decrease of C$1 million ($800,000) in net income over the previously reported fourth quarter 2003 results and an increase of C$3 million ($2.4 million) in net income over the previous full year results for 2003.
CPR said it moved more freight in 2004 than in any prior fiscal year with revenue ton-miles increasing 7.9 to 124 billion. The growth was generated across the bulk commodities, aided by a turnaround in industrial products and continued expansion in containerized intermodal freight, the railway said.
CPR said it expects revenue to increase 6 to 8 percent in 2005.