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Calgary, Alberta, Canada, 2011/07/27 - Canadian Pacific Railway Limited (TSX: CP) (NYSE: CP) announced its second-quarter 2011 results today with reported net income of $128.0 million and diluted earnings per share of $0.75. TSX, NYSE: CP
Canadian Pacific Railway Limited, today announced its second-quarter 2011 results today with reported net income of $128.0 million and diluted earnings per share of $0.75. Revenue and expense results were unfavourably impacted by extensive flooding.
• Q2 2011 Earnings Release and Financial Reports
“Throughout the second quarter we experienced difficult operating conditions as a result of widespread and prolonged flooding along our right of way. We had almost 90 separate outages during the quarter and our engineering team worked as swiftly as possible to bring the track back,” stated Fred Green, CP President and Chief Executive Officer. “We rerouted and detoured traffic over other railways and incurred significantly higher operating costs to ensure delivery of our customers’ shipments. Repairs are now complete and service levels are returning to normal.”
SECOND-QUARTER 2011 RESULTS COMPARED WITH SECOND-QUARTER 2010
• Total revenues were $1.3 billion, an increase of $30.3 million
• Operating expenses were $1.0 billion, an increase of $73.9 million
• Average fuel price increased 37 per cent to $3.50 U.S. dollars per U.S. gallon
• Operating income was $230.5 million, a decrease of $43.6 million
• Net income was $128.0 million, a decrease of $38.6 million
• Diluted earnings per share were $0.75 per share, a decline of $0.23 per share
Note on forward-looking information
This news release contains certain forward-looking statements relating but not limited to our operations, anticipated financial performance and business prospects. Undue reliance should not be placed on forward-looking information as actual results may differ materially.
By its nature, CP’s forward-looking information involves numerous assumptions, inherent risks and uncertainties, including but not limited to the following factors: changes in business strategies; general North American and global economic, credit and business conditions; risks in agricultural production such as weather conditions and insect populations; the availability and price of energy commodities; the effects of competition and pricing pressures; industry capacity; shifts in market demand; changes in laws and regulations, including regulation of rates; changes in taxes and tax rates; potential increases in maintenance and operating costs; uncertainties of litigation; labour disputes; risks and liabilities arising from derailments; transportation of dangerous goods, timing of completion of capital and maintenance projects; currency and interest rate fluctuations; effects of changes in market conditions and discount rates on the financial position of pension plans and investments, including long-term floating rate notes; and various events that could disrupt operations, including severe weather conditions, security threats and governmental response to them, and technological changes.
Except as required by law, CP undertakes no obligation to update publicly or otherwise revise any forward-looking information, whether as a result of new information, future events or otherwise.
About Canadian Pacific
Canadian Pacific (TSX: CP) (NYSE: CP) operates a North American transcontinental railway providing freight transportation services, logistics solutions and supply chain expertise. Incorporating best-in-class technology and environmental practices, CP is re-defining itself as a modern 21st century transportation company built on safety, service reliability and operational efficiency. Visit cpr.ca and see how Canadian Pacific is Driving the Digital Railway.
Janet Weiss, Investor Community Canadian Pacific
T: (403) 319-3233 / E: investor[.]cpr.ca.