Canadian Pacific Railway sees profits decrease
Canadian Pacific Railway Ltd. reported second quarter net income $155 million, a decrease of 40 percent from $257 million in the same 2007 period.
Revenue was “essentially flat” at $1.22 billion.
“This was a tough quarter with the unprecedented rise in fuel prices, the North American economic downturn, and prolonged flooding on our U.S. mainline,” said Fred Green, president and chief executive officer. “Combined, these had a significant impact on CP’s earnings.
“We see the current economic conditions continuing, and CP is taking aggressive steps which should position us well for 2009,” Green said. “I have accelerated a rigorous process to improve our productivity, efficiency, and yield.”
Freight revenue increased almost 2 percent despite a decrease in traffic. This was mainly due to pricing, inclusive of fuel recoveries.
CP experienced strong revenue growth from industrial and consumer products (17 percent), intermodal (9 percent) and coal (6 percent). This was offset by decreases in forest products (21 percent), grain (9 percent), sulphur and fertilizers (5 percent) and automotive (2 percent).