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Canadian Pacific Railway April 25 reported first-quarter net income of $136 million, a $101 million increase compared with first-quarter 2001. Excluding non-recurring items and a foreign-exchange loss on long-term debt, the railroad's net income was $68 million, which increased $6 million (10 percent) compared with last year.
Operating income rose, too, 16 percent to $176 million from $152 million, largely because of various cost-reduction measures and lower fuel prices.
Meanwhile, CPR's quarterly operating ratio improved 3.5 points to 79.9.
"Going into the quarter, we fully expected to face challenges on revenue and responded quickly by bringing expenses down at a rate that exceeded the revenue decline," said CPR President and Chief Executive Officer Rob Ritchie in a prepared statement.
First-quarter expenses totaled $699 million, decreasing $67 million compared with $766 million last year; fuel expenses fell 26 percent, and the railroad employs about 1,700 fewer employees compared with the same 2001 period.
However, quarterly freight revenues were $40 million lower than first-quarter 2001, as grain revenues dropped 20 percent following Canada's lowest grain-crop production in 12 years.