CP Railway 4th-quarter net income up 4.7%, full-year record
Canadian Pacific Railway’s fourth quarter net income increased 4.7 percent to C$135.4 million ($119 million) from C$129.3 million for the same period last year.
CPR’s quarterly operating income rose 60 percent to C$258 million ($226 million), compared with C$161.1 million for the same period in 2004. The operating income in the fourth quarter 2005 was negatively impacted by a C$44.2 million ($39 million) special charge relating to labor restructuring. The corresponding results in 2004 were negatively impacted by a net C$71.9 million ($63 million) following a C$90.9 million ($80 million) special charge for environmental remediation and a special C$19 million ($17 million) reduction relating to labor restructuring.
The railway’s revenue in fourth quarter increased 14.5 percent to C$1.24 billion ($1.08 billion) from C$981.4 million.
For the full year, CPR’s net income jumped 31.4 percent to a record C$542.9 million ($476 million) from C$413 million in 2004. Operating income was up 38.3 percent to C$991.1 million ($876 million) from C$716.6 million. Annual revenue increased 12.7 percent to C$4.26 billion ($3.73 billion) from C$3.78 billion.
CPR’s reported annual revenue increases in four of CPR’s seven business lines, led by a 37.4 percent increase in coal to C$728.8 million ($639 million); 12.9 percent in grain to C$754.5 million ($662 million); a 12.8 percent rise in industrial and consumer products revenue to C$542.9 million ($476 million); and 12.2 percent in intermodal freight revenue to C$1.16 billion ($1.01 billion).
CPR said it moved more freight in 2005 than in any prior fiscal year with revenue ton-miles increasing 1.4 percent to 125 billion.
CPR anticipates revenue growth of 3 percent to 6 percent in 2006.