Progressive Railroading

Newsletter Sign Up
Stay updated on news, articles and information for the rail industry



This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.






Rail News Home Financials

1/27/2004



Rail News: Financials

Higher fuel prices, stronger Canadian dollar dampen CPR's quarterly, annual earnings


advertisement


A rise in bulk commodity and grain moves helped Canadian Pacific Railway earn fourth-quarter net income of $175 million — a 39 percent increase compared with the same 2002 period. On Jan. 27, the Class I also reported total quarterly revenue of $964 million compared with fourth-quarter 2002's $950 million.

But because of an $18 million loss from assets transferred to IBM Canada Ltd. under a seven-year, $200 million computer-system outsourcing agreement, CPR's quarterly operating income fell to $226 million compared with $238 million during the same 2002 period.

Also, the Canadian dollar appreciated 19 percent during the quarter, reducing CPR's revenue about $80 million and operating expenses, about $56 million. The railroad's quarterly operating ratio worsened 1.6 points to 76.6 compared with fourth-quarter 2002.

"CPR set a record for train lengths and moved significantly more tonnage per train, generating higher productivity," said CPR President and Chief Executive Officer Rob Ritchie in a prepared statement. "[But] while we grew our business by $94 million, or 10 percent, in the fourth quarter, most of this growth was reduced by the significant year-over-year appreciation in the Canadian dollar."

During all of 2003, CPR's net income dropped $97 million to $399 million, operating income fell $116 million to $741 million, total revenue decreased $5 million to $3.66 billion and operating ratio worsened 3.2 points to 79.8 compared with 2002.

An 11 percent year-over-year rise in the Canadian dollar vs. the U.S. dollar reduced annual revenue about $192 million and operating expenses, about $136 million.


Contact Progressive Railroading editorial staff.

More News from 1/27/2004