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Rail News Home Financials

1/27/2005



Rail News: Financials

Financials: CPR's fourth quarter a bit soft, but full-year results are solid



Last year, Canadian Pacific Railway moved about 2.7 million carloads, setting a traffic record. The all-time high volume helped the Class I increase annual freight revenue 7.5 percent to $3.7 billion compared with 2003, according to financial results released today.

CPR's annual operating income rose 8 percent to $789 million, net income increased 3 percent to $413 million and operating ratio improved 0.3 points to 79.8. However, annual operating expenses increased 5.7 percent to $3.1 billion compared with 2003 primarily because of higher fuel prices and depreciation, and temporary costs to train additional crews.

"Our business model and franchise proved their power and value in 2004," said CPR President and Chief Executive Officer Rob Ritchie in a prepared statement. "A critical element of our business model was CPR's focus on increasing asset velocity and fluidity across the network. As a result, we began driving our productivity and efficiency indicators in the right direction at the same time as freight volumes took off."

CPR ended 2004 with mixed results. Fourth-quarter freight revenue rose 6.5 percent to $967 million and operating income increased 5 percent to $233 million compared with 2003. But quarterly net income dropped more than 25 percent to $129 million, operating expenses rose 6.5 percent to $789 million and the railroad's operating ratio worsened 0.3 points to 77.2.


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