CP RailwayÆs 4th-quarter net income up 6%
Canadian Pacific Railway's fourth quarter net income increased 6.2 percent to C$145.6 million ($123.3 million) from C$137.1 million for the same period in 2005.
CPR's quarterly operating income rose 23.1 percent to C$320.1 million ($271.2 million), compared with C$260 million in the prior year quarter. Revenue improved 2 percent to C$1.19 billion ($1 billion) from C$1.17 billion.
For the full year, CPR's net income jumped 46.6 percent to C$796.3 million ($674.6 million), which included a tax benefit of C$176 million ($149.1 million) as a result of a decrease in Canadian federal and provincial income tax rates.
Operating income in 2006 was up 13.9 percent to C$1.13 billion ($957.3 million) while revenue increased 4.4 percent to C$4.43 billion ($3.75 billion).
'I'm pleased with the financial results,' said Fred Green, CPR's president and chief executive officer, in a statement. 'We focused on cost containment and improving the fluidity of our operations and, with our diversified customer portfolio, we delivered strong results while overcoming a drop in coal revenues.'
Looking forward, CPR anticipates revenue growth of 4 percent to 7 percent in 2007. 'It is early in the year and there are many factors in play,' Green said. 'Rail fundamentals remain strong, although our operating team has been tested with very tough winter operating conditions and there is softening in some sectors of the North American economy. At the same time, we are seeing fluctuating fuel prices and a weakening Canadian dollar. I am confident we will hit our stride in 2007.'