advertisement

---

Despite traffic limitations caused by trackwork in western Canada during the third quarter, Canadian Pacific Railway registered record quarterly revenue of $1.1 billion, a 12 percent increase compared with third-quarter 2004.

During the quarter, the Class I earned net income of $204 million and operating income of $249 million, a 15 percent and 14 percent rise, respectively, compared with the same 2004 period. In addition, CPR’s operating ratio improved 0.5 points to 77.4.

However, quarterly operating expenses totaling $855 million increased 11 percent compared with third-quarter 2004 because of rising fuel, compensation and benefits costs. Although diesel prices reached record highs, CPR recovered most of the expense through surcharge revenue and fuel hedging.

“We met service commitments to customers and handled a third-quarter record workload while keeping the [western capacity] expansion on schedule and on budget,” said CPR President and Chief Executive Officer Rob Ritchie in a prepared statement.

During 2005’s first nine months, CPR’s revenue totaled $3.2 billion, a 12 percent increase compared with the same 2004 period. Net income rose 44 percent to $408 million, operating income increased 26 percent to $699 million and the railroad’s operating ratio improved 2.4 points to 78.3. Operating expenses went up 9 percent to $2.5 billion.

For the full year, CPR officials expect the railroad’s revenue to rise between 12 percent and 14 percent.

“Market conditions are solid and demand remains strong,” said Ritchie. “We also expect to see improved operating efficiency when our western expansion work is complete in the fourth quarter and CPR can take advantage of new double track, longer sidings and better signal systems.”