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During the third quarter, Canadian Pacific Railway increased revenue 4 percent to $996 million and — despite higher fuel costs — virtually held operating expenses in check at $758 million compared with third-quarter 2005 data. As a result, the Class I’s quarterly operating ratio improved 3.2 points to 74.2.

Grain revenue increased 18 percent, industrial and consumer products revenue rose 13 percent, sulphur and fertilizers revenue went up 10 percent, and intermodal revenue increased 8 percent, helping offset a 25 percent decrease in coal revenue.

In addition, CPR’s third-quarter income increased 24 percent to $149 million and diluted earnings per share rose 26 percent to 94 cents compared with similar 2005 data. However, net income of $144 million dropped 20 percent primarily because of the foreign exchange’s impact on long-term debt and a one-time special reduction.

“I am very pleased with our results,” said CPR President and Chief Executive Officer Fred Green in a prepared statement. “Our operating metrics, which measure how well our railroad is running, are excellent.”

During 2006’s first nine months, CPR’s revenue increased 4 percent to $3 billion, net income rose 60 percent to $577 million, diluted earnings per share went up 25 percent to $2.47 and operating ratio improved 2.1 points to 76.2. Operating expenses increased slightly to $2.3 billion.