CP Railway’s 3rd quarter net income up 15%

CP Railway’s 3rd quarter net income up 15%    Driven by double-digit growth rates in four of its seven business lines, Canadian Pacific Railway Wednesday posted a 15 percent rise in third quarter net income to C$203.6 million ($173 million) from C$176.5 million for the same period last year.
   CPR’s operating income rose 14 percent to C$249.4 million ($212 million) from C$218.9 million. Revenue increased 11.6 percent to C$1.1 billion ($935 million) from C$989.7 million.
   Third quarter revenue increased in four of CPR’s seven business lines, led by a 34.6 percent increase in coal to C$185.9 million ($158 million); a 13.2 percent rise in intermodal freight revenue to C$297.6 million ($253 million); and 11.1 percent in grain to C$190.8 million ($162 million). CPR said revenue per carload increased 11.9 percent.
   CPR’s fuel expense for the third quarter was C$141.9 million ($121 million), from $109.0 million in the same quarter last year. The railway said it offset the rising cost with a fuel hedging program and fuel conservation measures.
   For the year to date, the railway’s net income leaped 44 percent to C$407.5 million ($347 million), compared to C$283.7 million after nine months last year. Operating income was up 26 percent at C$699.2 million ($595 million) from C$555.5 million in the same period last year. Revenues increased to C$3.22 billion ($2.74 billion) from C$2.88 billion.
   CPR said it expects its revenue to increase in the range of 12 to 14 percent for the full year 2005.
   “CPR is confident in our full-year projections going into the home stretch of 2005. Market conditions are solid and demand remains strong,” said Rob Ritchie, president and chief executive officer of CPR. “We also expect to see improved operating efficiency when our western expansion work is complete in the fourth quarter, and CPR can take advantage of the new double track, longer sidings and better signal systems.”