CP Railway’s income rises 38% as Ritchie leaves
Canadian Pacific Railway’s first quarter net income jumped 38 percent to C$111 million ($98 million) from C$80.7 million for the same period last year, as Chief Executive Officer Rob Ritchie leaves the company on a high note.
CPR’s operating income rose 28 percent to C$229.1 million ($202.4 million) from C$178.7 million. Revenue increased 10 percent to C$1.11 billion ($980.7 million) from C$1.01 billion.
First quarter revenue increased in five of CPR’s seven business lines, led by a 28 percent increase in grain to C$211.3 ($187 million); a 13 percent rise in intermodal freight to C$292 million ($258 million), a 13 percent jump for industrial and consumer products to C$148.3 million ($131 million) and 3 percent for forest products to C$83.4 million ($74 million). Coal revenue declined 3 percent to C$160.2 million ($142 million), while sulfur and fertilizers revenue dropped 22 percent to C$93.1 million ($82 million).
CPR said it expects revenue to increase 5 percent to 8 percent in the remainder of 2006.
CPR’s share price on the New York Stock Exchange closed Tuesday at $54.17, down 1.67 percent over the previous day’s closing price.
“This is my last full fiscal quarter before I retire in May as CEO of CPR,” said Ritchie. “It is with some satisfaction that I am able to do so with the company producing solid results. What is even more satisfying is to see a new team in place that is strong, capable and motivated to take the company forward to even greater success.”
CPR’s chairman J.E. Newall will also leave the company after its annual general meeting May 5. Fred Green, appointed president of CPR in November, will take over from Ritchie while director John Cleghorn will replace Newall.