CPR income more than triples in first-quarter 2005 FREIGHT VOLUMES
REACH FIRST-QUARTER RECORD AS RAILWAY RAMPS UP TO MEET GROWING
DEMAND CALGARY, April 28 /PRNewswire-FirstCall/ -- Canadian Pacific
Railway (TSX/NYSE: CP) reported net income of $81 million in the
first quarter of 2005, more than triple first-quarter 2004 net
income of $24 million. CPR seized opportunities in expanding
markets to grow revenue in six of its seven business lines,
metallurgical coal rates increased significantly, and freight
volumes reached a first-quarter record level as railway fluidity
increased. The improvements propelled diluted earnings per share to
$0.50 in the three-month period ended March 31, compared with $0.15
in first-quarter 2004. SUMMARY OF FIRST-QUARTER 2005 COMPARED WITH
FIRST-QUARTER 2004 - Operating income up 54 per cent to $179
million - Revenue up 14 per cent to $1,014 million, a first-quarter
record - Operating expenses up 8 per cent - Operating expenses up
just 4 per cent excluding the impact of significantly higher fuel
prices - Operating ratio of 82.4 per cent, a 4.5-percentage-point
improvement Excluding foreign exchange losses on long-term debt,
CPR increased its after-tax income by 124 per cent to $85 million
or $0.53 per diluted share in first-quarter 2005, compared with $38
million or $0.24 per diluted share in the same period of 2004.
"CPR's performance in the quarter was exceptional," Rob Ritchie,
President and Chief Executive Officer of CPR, said. "Yield
continued to strengthen. We delivered greater operating leverage,
taking more of the revenue growth to the bottom line. Productivity
and fluidity continued to improve as freight car velocity increased
and our team handled more freight than in any previous
January-to-March period." CPR reached a five-year contract
agreement with Elk Valley Coal Partnership, retroactive to April 1,
2004, that included an increase in freight rates. Coal revenues in
the first quarter of 2005 were adjusted by $17 million to reflect
the higher rates applicable in the period from April 1 to Dec. 31,
2004. In other developments, CPR announced a $160-million capacity
expansion on its track network between the Prairies and the Port of
Vancouver. The work, which will be completed in the fourth quarter
this year, will increase CPR's capacity in western Canada by more
than 400 freight cars a day as offshore demand for Canadian
resources and imports of consumer goods continue to increase.
Multi-year contracts were concluded with CPR's three largest
unions. "CPR now has contracts in place with 96 per cent of its
unionized employees in Canada and with almost 80 per cent of its
unionized workforce across North America," Mr. Ritchie said. "We
have achieved a stable labour environment that enables all
stakeholders to benefit from continued growth in demand for rail
service, and we have done it with labour contracts that provide for
continued productivity improvements." REVENUE Revenue growth was
strong across CPR's entire bulk commodity sector in the first
quarter of 2005, compared with first-quarter 2004, led by coal and
grain, which increased 44 per cent and 23 per cent, respectively.
Revenue was also up in forest products as pulp and paper volumes
increased, and in the industrial products sector where demand was
strong for chemicals, aggregates and steel. Containerized
intermodal freight continued its record of uninterrupted growth,
with gains in both the import-export and domestic markets.
OPERATING EXPENSES Operating expenses increased as a result of high
fuel prices, business growth, and the impact of rising share prices
on stock-based compensation programs. "There will be ongoing focus
on expense management and railway fluidity as we continue to grow
our business, generate higher yield and improve our operating
leverage," Mr. Ritchie said. "The base of business covered by fuel
surcharges will continue to expand in 2005 and, together with fuel
efficiency measures and hedging, will further offset the impact of
high oil prices." OUTLOOK CPR expects to grow revenue in the range
of 12 per cent to 14 per cent in 2005. Diluted earnings per share,
excluding foreign exchange gains and losses on long-term debt and
other specified items, are expected to be between $3.15 and $3.25,
assuming oil prices averaging US$55 per barrel and an average
exchange rate of $1.23 per U.S. dollar (US$0.81). Capital
investment in 2005 is expected to be in the range of $900 million
to $920 million, including the $160-million cost of the capacity
expansion program. CPR expects that, in the first full year when
the additional capacity is completely utilized, it would translate
into incremental earnings per share in the range of $0.25 to $0.40.
Free cash flow after dividends is expected to be approximately $50
million to $100 million in 2005. FOREIGN EXCHANGE LOSSES ON
LONG-TERM DEBT CPR had a foreign exchange loss on long-term debt of
$3 million ($4 million after tax) in the first quarter of 2005,
compared with a loss of $13 million ($14 million after tax) in the
same period of 2004. PRESENTATION OF NON-GAAP EARNINGS CPR presents
non-GAAP earnings in this news release to provide a basis for
evaluating underlying earnings trends that can be compared with the
prior period's results. These non-GAAP earnings exclude foreign
currency translation effects on long-term debt, which can be
volatile and short term, and/or other specified items, which are
not among CPR's normal ongoing revenues and operating expenses. The
impact of volatile short-term rate fluctuations on
foreign-denominated debt is only realized when long-term debt
matures or is settled. A reconciliation of income, excluding
foreign exchange losses on long-term debt, to net income as
presented in the financial statements is detailed in the attached
Summary of Rail Data. In CPR's first fiscal quarter 2005, there
were foreign exchange losses on long-term debt but there were no
other specified items. It should be noted that CPR earnings that
exclude foreign exchange currency translation effects on long-term
debt and/or other specified items, as described in this news
release, have no standardized meanings and are not defined by
Canadian generally accepted accounting principles and, therefore,
are unlikely to be comparable to similar measures presented by
other companies. NOTE ON FORWARD-LOOKING STATEMENTS This news
release contains forward-looking information. Actual future results
may differ materially. The risks, uncertainties and other factors
that could influence actual results are described in CPR's annual
report and annual information form, and may be updated in CPR's
consolidated interim financial statements and interim Management's
Discussion and Analysis, which are filed with securities regulators
from time to time. However, CPR undertakes no obligation to update
publicly or otherwise revise any forward-looking information,
whether as a result of new information, future events, or
otherwise. Financial results in this news release are reported in
Canadian dollars. Canadian Pacific Railway is a transcontinental
carrier operating in Canada and the U.S. Its 14,000-mile rail
network serves the principal centres of Canada, from Montreal to
Vancouver, and the U.S. Northeast and Midwest regions. CPR feeds
directly into America's heartland from the East and West coasts.
Alliances with other carriers extend its market reach throughout
the U.S. and into Mexico. Canadian Pacific Logistics Solutions
provides logistics and supply chain expertise worldwide. For more
information, visit CPR's website at http://www.cpr.ca/. STATEMENT
OF CONSOLIDATED INCOME (in millions, except per share data) For the
three months ended March 31 2005 2004 (unaudited) (unaudited)
------------------------- Revenues Freight $ 979.9 $ 853.7 Other
34.2 32.9 ------------------------- 1,014.1 886.6 Operating
expenses Compensation and benefits 331.1 309.0 Fuel 134.5 99.7
Materials 58.8 53.8 Equipment rents 48.5 58.6 Depreciation and
amortization 109.5 99.6 Purchased services and other 153.0 149.9
------------------------- 835.4 770.6 -------------------------
Operating income 178.7 116.0 Other (income) charges (Note 3) (1.0)
4.6 Foreign exchange losses on long-term debt 3.1 13.3 Interest
expense (Note 4) 51.6 54.0 Income tax expense 44.3 20.6
------------------------- Net income $ 80.7 $ 23.5
------------------------- ------------------------- Basic earnings
per share (Note 6) $ 0.51 $ 0.15 -------------------------
------------------------- Diluted earnings per share (Note 6) $
0.50 $ 0.15 ------------------------- ------------------------- See
notes to interim consolidated financial statements. CONSOLIDATED
BALANCE SHEET (in millions) March 31 December 31 2005 2004
(unaudited) (audited) ------------------------- Assets Current
assets Cash and short-term investments $ 274.5 $ 353.0 Accounts
receivable 528.1 434.7 Materials and supplies 160.1 134.1 Future
income taxes 71.3 70.2 ------------------------- 1,034.0 992.0
Investments 55.9 96.0 Net properties 8,467.1 8,393.5 Other assets
and deferred charges 1,040.6 1,018.3 -------------------------
Total assets $ 10,597.6 $10,499.8 -------------------------
------------------------- Liabilities and shareholders' equity
Current liabilities Short-term borrowing $ 8.5 $ - Accounts payable
and accrued liabilities 969.2 975.3 Income and other taxes payable
23.0 16.2 Dividends payable 21.0 21.0 Long-term debt maturing
within one year 279.5 275.7 ------------------------- 1,301.2
1,288.2 Deferred liabilities 745.8 767.8 Long-term debt 3,078.9
3,075.3 Future income taxes 1,426.8 1,386.1 Shareholders' equity
Share capital 1,124.7 1,120.6 Contributed surplus 302.7 300.4
Foreign currency translation adjustments 73.4 77.0 Retained income
2,544.1 2,484.4 ------------------------- 4,044.9 3,982.4
------------------------- Total liabilities and shareholders'
equity $ 10,597.6 $10,499.8 -------------------------
------------------------- Commitments and contingencies (Note 10).
See notes to interim consolidated financial statements. STATEMENT
OF CONSOLIDATED CASH FLOWS (in millions) For the three months ended
March 31 2005 2004 (unaudited) (unaudited)
------------------------- Operating activities Net income $ 80.7 $
23.5 Add (deduct) items not affecting cash: Depreciation and
amortization 109.5 99.6 Future income taxes 40.1 16.0 Foreign
exchange losses on long-term debt 3.1 13.3 Amortization of deferred
charges 5.0 6.3 Restructuring payments (13.0) (18.5) Other
operating activities, net (20.9) (22.4) Change in non-cash working
capital balances related to operations (126.3) (15.2)
------------------------- Cash provided by operating activities
78.2 102.6 ------------------------- Investing activities Additions
to properties (143.4) (140.1) Other investments 0.8 (1.5) Net
proceeds from disposal of transportation properties 1.7 2.8
------------------------- Cash used in investing activities (140.9)
(138.8) ------------------------- Financing activities Dividends
paid (21.0) (20.2) Issuance of shares 4.1 0.4 Increase in
short-term borrowing 8.6 - Issuance of long-term debt - 193.7
Repayment of long-term debt (7.5) (11.6) -------------------------
Cash (used in) provided by financing activities (15.8) 162.3
------------------------- Cash position (Decrease) increase in net
cash (78.5) 126.1 Net cash at beginning of period 353.0 134.7
------------------------- Net cash at end of period $ 274.5 $ 260.8
------------------------- ------------------------- Net cash is
defined as: Cash and short-term investments $ 274.5 $ 260.8
------------------------- ------------------------- See notes to
interim consolidated financial statements. STATEMENT OF
CONSOLIDATED RETAINED INCOME (in millions) For the three months
ended March 31 2005 2004 (unaudited) (unaudited)
------------------------- Balance, January 1 $ 2,484.4 $ 2,153.9
Net income for the period 80.7 23.5 Dividends (21.0) (20.2)
------------------------- Balance, March 31 $ 2,544.1 $ 2,157.2
------------------------- ------------------------- See notes to
interim consolidated financial statements. NOTES TO INTERIM
CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2005 (unaudited) 1
Basis of presentation These unaudited interim consolidated
financial statements and notes have been prepared using accounting
policies that are consistent with the policies used in preparing
Canadian Pacific Railway Limited's ("CPR", "the Company" or
"Canadian Pacific Railway") 2004 annual consolidated financial
statements. They do not include all disclosures required under
Generally Accepted Accounting Principles for annual financial
statements and should be read in conjunction with the annual
consolidated financial statements. 2 Change in accounting estimate
During the quarter, the Company recorded a $16.6-million adjustment
to increase revenues related to the April 1-to-December 31 period
of 2004. This adjustment reflects a change in estimate as a result
of a contract settlement with a customer. 3 Other (income) charges
For the three months ended March 31 (in millions) 2005 2004
------------------------- Amortization of discount on accruals
recorded at present value $ 4.2 $ 4.9 Other exchange (gains) losses
(2.0) 2.5 Loss on sale of accounts receivable 0.9 0.9 Gain on
non-hedging derivative instruments (6.2) (4.6) Other 2.1 0.9
------------------------- Total other (income) charges $ (1.0) $
4.6 ------------------------- ------------------------- 4 Interest
expense For the three months ended March 31 (in millions) 2005 2004
------------------------- Interest expense $ 54.7 $ 55.2 Interest
income (3.1) (1.2) ------------------------- Total interest expense
$ 51.6 $ 54.0 ------------------------- ------------------------- 5
Restructuring and environmental remediation At March 31, 2005, the
provision for restructuring and environmental remediation was
$439.6 million (December 31, 2004 - $448.7 million). This provision
primarily includes labour liabilities for restructuring plans.
Payments are expected to continue in diminishing amounts until
2025. The environmental remediation liability includes the cost of
a multi-year soil remediation program. Set out below is a
reconciliation of CPR's liabilities associated with restructuring
and environmental remediation programs: Three months ended March
31, 2005 Opening Amorti- Closing Balance zation Foreign Balance (in
Jan. 1 of Exchange Mar. 31 millions) 2005 Accrued Payments Discount
Impact 2005
----------------------------------------------------------- Labour
liability for termi- nation plans $ 269.7 (0.2) (11.8) 3.1 0.4 $
261.2 Other non-labour liabil- ities for exit plans 6.1 (0.1) - - -
6.0 -----------------------------------------------------------
Total restruc- turing liability 275.8 (0.3) (11.8) 3.1 0.4 267.2
-----------------------------------------------------------
Environ- mental remediation program 172.9 - (1.2) - 0.7 172.4
----------------------------------------------------------- Total
restruc- turing and environ- mental remediation lia- bility $ 448.7
(0.3) (13.0) 3.1 1.1 $ 439.6
-----------------------------------------------------------
----------------------------------------------------------- Three
months ended March 31, 2004 Opening Amorti- Closing Balance zation
Foreign Balance (in Jan. 1 of Exchange Mar. 31 millions) 2004
Accrued Payments Discount Impact 2004
----------------------------------------------------------- Labour
liability for term- ination plans $ 358.2 - (16.7) 4.4 0.9 $ 346.8
Other non-labour liabil- ities for exit plans 9.2 - (0.3) - - 8.9
----------------------------------------------------------- Total
restruc- turing liability 367.4 - (17.0) 4.4 0.9 355.7
-----------------------------------------------------------
Environ- mental remediation program 94.8 - (1.5) - 0.5 93.8
----------------------------------------------------------- Total
restruc- turing and environ- mental remediation lia- bility $ 462.2
- (18.5) 4.4 1.4 $ 449.5
-----------------------------------------------------------
-----------------------------------------------------------
Amortization of Discount is charged to income as "Other Charges"
and "Purchased Services and Other". 6 Earnings per share At March
31, 2005, the number of shares outstanding was 158.9 million. Basic
earnings per share have been calculated using net income for the
period divided by the weighted average number of CPR shares
outstanding during the period. Diluted earnings per share have been
calculated using the treasury stock method, which gives effect to
the dilutive value of outstanding options. The number of shares
used in earnings per share calculations is reconciled as follows:
For the three months ended March 31 (in millions) 2005 2004
------------------------- Weighted average shares outstanding 158.8
158.7 Dilutive effect of stock options 1.4 0.6
------------------------- Weighted average diluted shares
outstanding 160.2 159.3 -------------------------
------------------------- (in dollars) Basic earnings per share $
0.51 $ 0.15 Diluted earnings per share $ 0.50 $ 0.15
------------------------- ------------------------- 7 Stock-based
compensation In 2005, under CPR's stock option plans, the Company
issued 1,548,000 options to purchase Common Shares at the weighted
average price of $42.05 per share, based on the closing price on
the day prior to the grant date. In tandem with these options,
508,000 stock appreciation rights were issued at the weighted
average exercise price of $42.05. Pursuant to the employee plan,
options may be exercised upon vesting, which is between 24 months
and 36 months after the grant date, and will expire after 10 years.
Some options vest after 48 months, unless certain performance
targets are achieved, in which case vesting is accelerated. These
options expire five years after the grant date. The following is a
summary of the Company's fixed stock option plans as of March 31
(including options granted under the Directors' Stock Option Plan,
which was suspended in 2003): 2005 2004 -----------------------
----------------------- Weighted Weighted average average Number of
exercise Number of exercise options price options price
----------------------- ----------------------- Outstanding,
January 1 7,752,080 $ 29.32 6,226,674 $ 28.20 New options granted
1,548,000 42.05 1,741,400 32.50 Exercised (151,514) 27.23 (33,127)
14.01 Forfeited/cancelled (48,071) 27.36 (16,175) 29.04 Expired - -
- - ------------ ------------ Outstanding, March 31 9,100,495 $
31.53 7,918,772 $ 29.21 -----------------------
----------------------- -----------------------
----------------------- Options exercisable at March 31 2,342,965 $
27.19 1,332,880 $ 23.84 -----------------------
----------------------- -----------------------
----------------------- Compensation expense is recognized over the
vesting period for stock options issued since January 1, 2003,
based on their estimated fair values on the date of grants, as
determined by the Black-Scholes option pricing model. Had CPR used
the fair value method for options granted between January 1, 2002,
and December 31, 2002, CPR's pro forma basis net income and
earnings per share would have been as follows: For the three months
ended March 31 2005 2004 ------------------------- Net income (in
millions) As reported $ 80.7 $ 23.5 Pro forma $ 80.6 $ 22.9
------------------------- ------------------------- (in dollars)
Basic earnings per share As reported $ 0.51 $ 0.15 Pro forma $ 0.51
$ 0.14 ------------------------- ------------------------- Diluted
earnings per share As reported $ 0.50 $ 0.15 Pro forma $ 0.50 $
0.14 ------------------------- ------------------------- Under the
fair value method, the fair value of options at the grant date is
$10.0 million for options issued in the first quarter of 2005
(first quarter of 2004 - $9.5 million). The weighted average fair
value assumptions were approximately: For the three months ended
March 31 2005 2004 ------------------------- Expected option life
(years) 4.50 4.50 Risk-free interest rate 3.49% 3.36% Expected
stock price volatility 24% 28% Expected annual dividends per share
$ 0.53 $ 0.50 Weighted average fair value of options granted during
the year $ 9.65 $ 8.04 -------------------------
------------------------- 8 Pensions and other benefits The total
benefit cost for the Company's defined benefit pension plans,
defined contribution pension plans and post-retirement benefits for
the quarter ended March 31, 2005, was $20.4 million (quarter ended
March 31, 2004 - $19.2 million). 9 Significant customers During the
first quarter of 2005, one customer comprised 15.0% of total
revenue (first quarter of 2004 - 11.2%). At March 31, 2005, one
customer represented 15.8% of total accounts receivable (March 31,
2004 - 5.7%). 10 Commitments and contingencies In the normal course
of its operations, the Company becomes involved in various legal
actions, including claims relating to injuries and damages to
property. The Company maintains provisions it considers to be
adequate for such actions. While the final outcome with respect to
actions outstanding or pending at March 31, 2005, cannot be
predicted with certainty, it is the opinion of management that
their resolution will not have a material adverse effect on the
Company's financial position or results of operations. During the
fourth quarter of 2004, CPR recorded a charge for environmental
remediation for a specific property. The estimated cost for
remediation may change as new information becomes available or new
developments occur. Capital commitments At March 31, 2005, CPR had
multi-year capital commitments of $607.2 million, mainly for
locomotive overhaul agreements, in the form of signed contracts or
letters of intent. Payments for these commitments are due in 2005
through 2018. Operating lease commitments At March 31, 2005,
minimum payments under operating leases were estimated at $580.4
million in aggregate, with annual payments in each of the next 5
years of: remainder of 2005 - $110.0 million; 2006 - $120.6
million; 2007 - $85.8 million; 2008 - $62.2 million; 2009 - $38.8
million. Guarantees The Company has residual value guarantees on
operating lease commitments of $196.7 million at March 31, 2005.
The maximum amount that could be payable under these and all of the
Company's other guarantees cannot be reasonably estimated due to
the nature of certain of the guarantees. All or a portion of
amounts paid under certain guarantees could be recoverable from
other parties or through insurance. The Company has accrued for all
guarantees that it expects to pay. At March 31, 2005, these
accruals, which do not include any amounts for residual value
guarantees, amounted to $9.2 million. Summary of Rail Data
-------------------- First Quarter
------------------------------------------- 2005 2004 Variance %
---------- ---------- ---------- ---------- Financial (millions,
except --------------------------- per share data) ---------------
Revenues -------- Freight revenue $ 979.9 $ 853.7 $ 126.2 14.8
Other revenue Other Intermodal revenues 12.7 11.7 1.0 8.5
Non-freight and switching revenues 21.5 21.2 0.3 1.4 ----------
---------- ---------- Total other revenue 34.2 32.9 1.3 4.0
---------- ---------- ---------- 1,014.1 886.6 127.5 14.4
---------- ---------- ---------- Expenses -------- Compensation and
benefits 331.1 309.0 22.1 7.2 Fuel 134.5 99.7 34.8 34.9 Materials
58.8 53.8 5.0 9.3 Equipment rents 48.5 58.6 (10.1) (17.2)
Depreciation and amortization 109.5 99.6 9.9 9.9 Purchased services
and other 153.0 149.9 3.1 2.1 ---------- ---------- ----------
835.4 770.6 64.8 8.4 ---------- ---------- ---------- Operating
income 178.7 116.0 62.7 54.1 Other (income) charges (1.0) 4.6 (5.6)
(121.7) Interest expense 51.6 54.0 (2.4) (4.4) Income tax expense
before foreign exchange losses on long-term debt(1) 43.5 19.6 23.9
121.9 ---------- ---------- ---------- Income before foreign
exchange losses on long-term debt(1) 84.6 37.8 46.8 123.8
---------- ---------- ---------- Foreign exchange losses on
--------------------------- long-term debt (FX on LTD)
-------------------------- FX on LTD (3.1) (13.3) 10.2 - Income tax
on FX on LTD (0.8) (1.0) 0.2 - ---------- ---------- ---------- FX
on LTD (net of tax) (3.9) (14.3) 10.4 - ---------- ----------
---------- Net income $ 80.7 $ 23.5 $ 57.2 243.4 ----------
---------- ---------- ---------- ---------- ---------- Earnings per
share (EPS) ------------------------ Basic earnings per share $
0.51 $ 0.15 $ 0.36 240.0 Diluted earnings per share $ 0.50 $ 0.15 $
0.35 233.3 EPS before FX on LTD (1) -------------------- Basic
earnings per share $ 0.53 $ 0.24 $ 0.29 120.8 Diluted earnings per
share $ 0.53 $ 0.24 $ 0.29 120.8 Weighted average number of shares
outstanding (millions) 158.8 158.7 0.1 0.1 Operating ratio(2) (%)
82.4 86.9 (4.5) - ROCE before FX on LTD (after tax)(1)(2) (%) 7.9
7.1 0.8 - Net debt to net debt plus equity (%) 43.3 47.5 (4.2) -
EBIT before FX on LTD(1)(2) (millions) $ 179.7 $ 111.4 $ 68.3 61.3
EBITDA before FX on LTD(1)(2) (millions) $ 289.2 $ 211.0 $ 78.2
37.1 (1) These are earnings measures that are not in accordance
with GAAP and may not be comparable to similar measures of other
companies. See note on non-GAAP earnings measures attached to
commentary. (2) EBIT: Earnings before interest and taxes. EBITDA:
Earnings before interest, taxes, and depreciation and amortization.
ROCE (after tax): Return on capital employed (after tax) equals
earnings before interest (last 12 months) divided by average net
debt plus equity. Operating ratio: Operating expenses divided by
revenues.
-------------------------------------------------------------------------
First Quarter ------------------------------------------- 2005 2004
Variance % ---------- ---------- ---------- ---------- Commodity
Data -------------- Freight Revenues (millions) - Grain $ 165.6 $
135.0 $ 30.6 22.7 - Coal 165.6 115.3 50.3 43.6 - Sulphur and
fertilizers 119.3 111.2 8.1 7.3 - Forest products 81.1 73.4 7.7
10.5 - Industrial products 118.6 101.6 17.0 16.7 - Automotive 69.9
71.3 (1.4) (2.0) - Intermodal (including food and consumer) 259.8
245.9 13.9 5.7 ---------- ---------- ---------- Total Freight
Revenues $ 979.9 $ 853.7 $ 126.2 14.8 ---------- ----------
---------- Intermodal (including food and consumer) - Intermodal
247.5 232.9 14.6 6.3 - Food and consumer 12.3 13.0 (0.7) (5.4)
Millions of Revenue Ton-Miles (RTM) - Grain 6,137 5,562 575 10.3 -
Coal 5,728 5,732 (4) (0.1) - Sulphur and fertilizers 5,497 4,951
546 11.0 - Forest products 2,521 2,495 26 1.0 - Industrial products
3,580 3,467 113 3.3 - Automotive 570 552 18 3.3 - Intermodal
(including food and consumer) 6,687 6,713 (26) (0.4) ----------
---------- ---------- Total RTMs 30,720 29,472 1,248 4.2 ----------
---------- ---------- Intermodal (including food and consumer) -
Intermodal 6,339 6,327 12 0.2 - Food and consumer 348 386 (38)
(9.8) Freight Revenue per RTM (cents) - Grain 2.70 2.43 0.27 11.1 -
Coal 2.89 2.01 0.88 43.8 - Sulphur and fertilizers 2.17 2.25 (0.08)
(3.6) - Forest products 3.22 2.94 0.28 9.5 - Industrial products
3.31 2.93 0.38 13.0 - Automotive 12.26 12.92 (0.66) (5.1) -
Intermodal 3.89 3.66 0.23 6.3 Freight Revenue per RTM 3.19 2.90
0.29 10.0 Carloads (thousands) - Grain 75.9 71.8 4.1 5.7 - Coal
85.9 95.7 (9.8) (10.2) - Sulphur and fertilizers 55.5 50.6 4.9 9.7
- Forest products 39.3 39.5 (0.2) (0.5) - Industrial products 73.2
70.5 2.7 3.8 - Automotive 42.0 43.3 (1.3) (3.0) - Intermodal
(including food and consumer) 275.7 285.3 (9.6) (3.4) ----------
---------- ---------- Total Carloads 647.5 656.7 (9.2) (1.4)
---------- ---------- ---------- Intermodal (including food and
consumer) - Intermodal 267.3 277.2 (9.9) (3.6) - Food and consumer
8.4 8.1 0.3 3.7 Freight Revenue per Carload - Grain $ 2,182 $ 1,880
$ 302 16.1 - Coal 1,928 1,205 723 60.0 - Sulphur and fertilizers
2,150 2,198 (48) (2.2) - Forest products 2,064 1,858 206 11.1 -
Industrial products 1,620 1,441 179 12.4 - Automotive 1,664 1,647
17 1.0 - Intermodal 942 862 80 9.3 Freight Revenue per Carload $
1,513 $ 1,300 $ 213 16.4
-------------------------------------------------------------------------
-------------------------------------------------------------------------
First Quarter ------------------------------------------- 2005
2004(1) Variance % ---------- ---------- ---------- ----------
Operations and Productivity --------------------------- Freight
gross ton-miles (GTM) (millions) 58,416 55,951 2,465 4.4 Revenue
ton-miles (RTM) (millions) 30,720 29,472 1,248 4.2 Train-miles
(thousands) 10,665 9,944 721 7.3 Freight revenue per RTM (cents)
3.19 2.90 0.29 10.0 Total operating expenses per RTM (cents) 2.72
2.61 0.11 4.2 Total operating expenses per GTM (cents) 1.43 1.38
0.05 3.6 Total operating expenses per train-mile (dollars) 78.33
77.49 0.84 1.1 Average train weights (tons) 5,477 5,627 (150) (2.7)
Average train length (feet) 3,824 4,054 (230) (5.7) Average train
speed (mph) 23.8 23.4 0.4 1.7 Number of active employees at end of
period 15,691 15,467 224 1.4 Average number of active employees
15,468 15,267 201 1.3 Miles of road operated at end of period(2)
13,821 13,848 (27) (0.2) GTMs per average active employee (000)
3,777 3,665 112 3.1 GTMs per mile of road operated(2) (000) 4,227
4,040 187 4.6 GTMs per active locomotive per day (000) 644 650 (6)
(0.9) U.S. gallons of fuel per 1,000 GTMs 1.26 1.29 (0.03) (2.3)
Average fuel price excluding provincial fuel taxes (U.S. dollar per
U.S. gallon) 1.36 0.96 0.40 41.7 Diesel fuel consumed - freight
& yard (million U.S. gallons) 73.4 72.0 1.4 1.9 WTI (US$/bbl -
average lagged 1 month, unhedged) 46.05 33.62 12.43 37.0 Average
foreign exchange rate (Canadian$/US$) 1.226 1.319 (0.093) - Average
foreign exchange rate (US$/Canadian$) 0.816 0.758 0.058 - FRA
personal injuries per 200,000 employee-hours 2.6 3.3 (0.7) (21.2)
FRA train accidents per million train-miles 2.9 2.5 0.4 16.0 (1)
Certain prior period figures have been revised to conform with the
presentation adopted in 2005 or have been updated to reflect new
information. (2) Excludes track on which CPR has haulage rights.
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DATASOURCE: Canadian Pacific Railway CONTACT: Media, Len
Cocolicchio, Tel.: (403) 319-7591, ; Investment Community, Paul
Bell, Vice-President, Investor Relations, Tel.: (403) 319-3591,
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