CALGARY, March 21 /PRNewswire/ - Canadian Pacific (TSX:
CP) (NYSE: CP) today announced first quarter earnings will be lower
due to the impact of winter weather across the entire rail supply
chain. The severity and length of winter events on our operations
combined with the lag in fuel recoveries have reduced diluted
earnings per share (EPS) by approximately 40
cents versus last year. CP expects diluted EPS for first
quarter 2011 to be within the range of 12 to
22 cents.
"Since the new year, multiple severe weather events have caused
significant disruptions to train operations across our network.
Slower train speeds have reduced productivity and asset velocity
thereby constraining network capacity and limiting our ability to
meet market demands," said Fred
Green, President and Chief Executive Officer. "The impact of
avalanche disruptions are just one factor that increased fivefold
this year in our busiest corridor through the mountains causing
very inefficient stop-start operations."
"We have been increasing resources to meet strong demand and
improve service reliability," Mr. Green added. "With moderating
weather CP is seeing fluidity return to the network and our
operating metrics are showing improvement. Our two- to four-year
target of delivering a low 70s operating ratio remains
unchanged."
Note on forward-looking information
This news release contains certain forward-looking statements
relating but not limited to our operations, anticipated financial
performance and business prospects. Undue reliance should not be
placed on forward-looking information as actual results may differ
materially.
By its nature, CP's forward-looking information involves
numerous assumptions, inherent risks and uncertainties, including
but not limited to the following factors: changes in business
strategies; general North American and global economic, credit and
business conditions; the availability and price of energy
commodities; the effects of competition and pricing pressures;
industry capacity; shifts in market demand; changes in laws and
regulations, including regulation of rates; changes in taxes and
tax rates; potential increases in maintenance and operating costs;
uncertainties of litigation; labour disputes; risks and liabilities
arising from derailments; transportation of dangerous goods, timing
of completion of capital and maintenance projects; currency and
interest rate fluctuations; and various events that could disrupt
operations, including severe weather conditions, security threats
and governmental response to them, and technological changes.
Reference should be made to "Management's Discussion and
Analysis" in CP's annual and interim reports, Annual Information
Form and Form 40-F filed with Canadian and U.S. securities
regulators, available on CP's website, for a summary of major
risks.
Except as required by law, CP undertakes no obligation to update
publicly or otherwise revise any forward-looking information,
whether as a result of new information, future events or
otherwise.
About Canadian Pacific:
Canadian Pacific (TSX: CP) (NYSE: CP) operates a North American
transcontinental railroad providing freight transportation
services, logistics solutions and supply chain expertise.
Incorporating best-in-class technology and environmental practices,
CP is re-defining itself as a modern 21st century transportation
company built on safety, service reliability and operational
efficiency. Visit cpr.ca and see how Canadian Pacific is Driving
the Digital Railway.
SOURCE Canadian Pacific