CP RAILWAY SEES DROP IN 1ST-QUARTER RESULTS

CP RAILWAY SEES DROP IN 1ST-QUARTER RESULTS    Canadian Pacific Railway’s operating income decreased to C$136 million ($88 million) in the first quarter, from C$187 million in the same quarter last year.
   Net income for the railroad arm of the Canadian Pacific group dropped by 20 percent during the same period, to C$68 million ($44 million), from C$85 million.
   Revenue for the latest quarter was C$918 million ($592 million), virtually unchanged from the C$913 million revenue for the same quarter in 2000.
   Canadian Pacific Railway said its latest results include a C$9 million after-tax charge for accrued costs related to payouts under long-term incentive plans.
   “While freight revenues were up modestly, operating expenses excluding the incentive program costs rose by 6 percent due chiefly to harsher winter operating conditions in the east and midwest and higher fuel prices,” the company said.
   The railroad’s operating ratio deteriorated by 3.9 percentage points, reaching to 83.4 percent in the latest quarter.
   Even with the softness in the North American economy, freight revenues increased by C$10 million ($6 million), it added. Grain revenues improved, reflecting strong demand for durum and wheat in the U.S. Coal revenues also posted significant gains as strong demand increased shipments, particularly from the export coal mines served in southeastern British Columbia. Intermodal revenues benefited from stronger domestic shipments by major retailers.