CPÆs fourth quarter profits fall
Canadian Pacific Railway said it had a profit of $201 million
(Canadian) for the fourth quarter ending Dec. 31, down 41 percent from C$342 million for same period last year.
Total revenues for the quarter were C$1.3 billion a 9 percent increase compared to the C$1.2 billion of revenue in the fourth quarter of 2007.
The company said a stronger U.S. dollar in the fourth quarter increased both freight revenues and operating expenses that were denominated in U.S. currency. Relative to the U.S. dollar, the Canadian dollar weakened from $0.98 per U.S. dollar in the fourth quarter of 2007 to $1.17 per U.S. dollar on average during the fourth quarter of 2008.
Freight revenues were up 10 percent in the fourth quarter due to foreign exchange, continued pricing strength inclusive of fuel recoveries, and revenues from CP's purchase of the Dakota, Minnesota & Eastern Railroad.
CP said revenues from industrial and consumer products increased 37 percent, with grain revenues increasing 19 percent, and coal and automotive both improving 6 percent. Intermodal was flat year-over-year. These gains were offset somewhat by decreases in forest products, and sulphur and fertilizers of 7 percent and 3 percent, respectively.