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Score the Class Is a perfect six for six when it comes to record financial results. In 2006, Canadian Pacific Railway — the last of the six largest railroads to report in — earned record annual operating income of $956 million, up 13 percent compared with 2005 income.

Also in 2006, CPR’s revenue increased 4 percent to $3.9 billion, net income jumped 47 percent to $673.8 million, diluted earnings per share rose 20 percent to $3.34 an operating ratio improved 1.8 points to 75.4 compared with 2005 results. In addition, the railroad’s annual operating expenses increased only 2 percent to $2.9 billion.

“We focused on cost containment and improving the fluidity of our operations, and … delivered strong results while overcoming a drop in coal revenues of $137 million,” said CPR President and Chief Executive Officer Fred Green in a prepared statement.

In the fourth quarter, CPR’s revenue totaled $973 million, up 2 percent year over year. Sulphur and fertilizers revenue increased 19 percent, and grain revenue rose 16.5 percent, helping offset a 16 percent decrease in coal revenue.

Meanwhile, quarterly operating income increased 6 percent to $153 million, net income rose 6 percent to $123.5 million and diluted earnings per share went up 7.5 percent to 97 cents compared with 2005 data. CPR’s fourth-quarter operating ratio improved 0.8 points to 73.1 and operating expenses increased less than 1 percent to $736 million.

The Class I’s outlook for 2007 financial results is just as rosy. Annual revenue is expected to increase between 4 percent and 6 percent, and free cash flow is projected to exceed $210 million.

“Rail fundamentals remain strong, although our operating team has been tested with very tough winter operating conditions and there is softening in some sectors of the North American economy,” said Green.