CANADIAN PACIFIC RAILWAY SEES DIP IN 4TH-QUARTER NET INCOME

CANADIAN PACIFIC RAILWAY SEES DIP IN 4TH-QUARTER NET INCOME

   Canadian Pacific Railway saw fourth-quarter net income dip 5.6 percent to Can $118 million ($73.2 million), due to expenses associated with the company's spinoff from Canadian Pacific Ltd., as well as charges due to foreign exchange gains in 2000.

   Excluding non-recurring items, operating income for the quarter rose 12 percent to Can $261 million ($161.9 million), while operating ratio improved 2.4 points to 72.5 percent. Revenue rose 2 percent to Can $951 million ($589.8 million).

   Non-recurring items for the fourth quarter totaled Can $11 million ($6.8 million), or Can $6 million after tax ($3.7 million) and were due to incentive compensation charges and bridge financing fees related to CPR's spinoff. The 2000 period included a $132-million in future income tax liability associated with a decrease in the Canadian federal income tax rates.

   Freight revenues for the fourth quarter were Can $882 million ($589.8 million), matching the fourth-quarter 2000 performance. Coal revenues rose 15 percent, while automotive and grain revenues rose 1 percent. Intermodal and forest products revenues was flat.

   For the year, net income slipped 7.7 percent to Can $370 million ($229.5 million), due to higher interest expense following the spinoff and other charges which were up Can $43 million and $20 million, respectively.

   Operating income was unchanged from 2000, at Can $841 million ($521.6 million) excluding non-recurring items. Revenues rose 1.2 percent to Can $3.70 billion ($2.29 billion).