Financial reporting season for 2011 is in full swing and the latest Class One Railroad to post their results is the Canadian Pacific (CP)
The Canadian Pacific Railway Limited announced its fourth-quarter and full year 2011 results
Thursday before the market opened.
Fourth-quarter CP reported net income of $221 million and diluted earnings per share of $1.30, inclusive of $0.22 per share income tax benefit. For the full year, the company reported net income of $570 million and diluted earnings per share of $3.34 according to the prepared release.
"We exited 2011 having made meaningful progress on the three pillars of our Multi-Year Plan: driving growth, expanding network capacity to safely and efficiently support higher volumes and controlling costs. During the fourth quarter we delivered record asset velocity, a direct
link to better service, positioning us for a lower operating ratio," said Fred Green, President and Chief Executive Officer. "We begin 2012 with operating momentum, excellent service levels and a stronger, more resilient rail network. We are aggressively executing on our Multi-Year Plan, which is instrumental in creating long-term value for shareholders."
The Canadian Pacific serves both Canada and the United States and their mainline in the US runs from Canada to the Gulf of Mexico making them a key infrastructure asset in NAFTA and foreign export trade. The CP Mainline in Canada runs to British Columbia providing easy export capababilities to the Pacific Rim.
Looking forward to 2012
"Our operational metrics are a leading indicator of both customer satisfaction and financial results. The operational improvements we have already achieved will now begin to drive enhanced financial results in the first quarter of 2012 and, as we continue to execute on
our Multi-Year Plan, further operational improvements will deliver financial benefits," added Fred Green. "Given our recent market successes and operating trends, we can now with confidence, narrow our target operating ratio range to 70 to 72 per cent in three years and we have no intention of stopping there."
CP plans to spend in the range of $1.1 billion to $1.2 billion on capital programs in 2012, as announced on January 17, 2012.
Source: Canadian Pacific Railway
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