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CP Rail earnings gain on tunnel sale

CP Rail earnings gain on tunnel sale

Canadian Pacific Railway said it had second quarter net profit of $157 million Canadian ($145 million), a 2 percent increase from the same 2008 period

   Revenue was C$1 billion ($924 million), down 21 percent from the second quarter of 2008.

   The impact on net income from a decline in freight volumes was offset by a net gain after tax on the sale of a portion of CP's interest in the Detroit River Tunnel Partnership of C$69 million ($64 million).

   'The recession continues to have a significant impact on our business, and although freight volumes appear to have stabilized, we have not yet seen a sustained recovery in traffic,' said Fred Green, president and chief executive officer. “In this economic climate we continue to manage what is in our control and I am pleased with our cost management efforts.”

   Grain revenue in the second quarter was up 20 percent when compared to the prior year period. All other categories were down: coal, down 46 percent; sulphur and fertilizer, 54 percent; forest products, 33 percent; industrial and consumer products, 24 percent; automotive, 43 percent; and intermodal, down 22 percent.