Canadian Pacific Railway targets continued improved earnings in 2007
16 Novembre 2006 - 1:23PM
PR Newswire (US)
CALGARY, Nov. 16 /PRNewswire-FirstCall/ -- Canadian Pacific Railway
(TSX/NYSE: CP) will provide information about its activities and
plans for 2007 at its annual Investor Workshop today. This will
include an overview of CPR's 2007 strategy, revenue outlook,
earnings and free cash expectations. The workshop will be webcast
live from 1:00 pm to 4:30 pm Eastern time. "CPR is poised to
deliver improved results in 2007", said Fred Green, President and
Chief Executive Officer, "Execution of our integrated operating
plan is driving increased fluidity on our network and improving our
operating ratio. Our people are engaged and their productivity
continues to improve as we see execution excellence in every job
that we do. I believe we are on track to become the safest and most
fluid railway in North America." 2007 diluted earnings per share is
expected to be in the range of $4.30 to $4.45. This is an increase
of 9 per cent to 13 per cent over $3.95, the top end of the
recently revised 2006 earnings guidance range, which excludes
foreign exchange gains and losses on long-term debt and other
specified items. The 2007 estimate assumes crude oil prices
averaging US $65 per barrel, an average currency exchange rate of
$1.11 per U.S. dollar (US $0.90) and North American economic growth
of 2.7 per cent. CPR expects to grow total revenue by 4 per cent to
6 per cent in 2007 based on volume growth and higher prices for its
services. Total operating costs are expected to increase by 3 per
cent to 5 per cent. Capital investment is expected to be in the
range of $885 million to $895 million in 2007, an increase from
anticipated capital spending of $840 million to $845 million in
2006. CPR expects free cash after dividends to be in excess of $200
million in 2007. A live audio webcast of today's Analyst Workshop
and all presentation slides will be available on the Investors
section of CPR's website, http://www.cpr.ca/. The webcast and
presentation slides will also be archived on the website.
Presentation of non-GAAP earnings CPR presents non-GAAP earnings in
this news release to provide a basis for evaluating underlying
earnings trends in its business that can be compared with prior
periods' results of operations. These non-GAAP earnings exclude
foreign currency translation effects on long-term debt, which can
be volatile and short term, and 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. Earnings that exclude foreign exchange
currency translation effect on long-term debt and 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. Free cash after
dividends is calculated as cash provided by operating activities,
less cash used in investing activities and dividends. Other
specified items are material transactions that may include, but are
not limited to, restructuring and asset impairment charges, gains
and losses on non-routine sales of assets, unusual income tax
adjustments, and other items that do not typify normal business
activities. In 2006 to date, the only other specified item was an
income tax benefit of $176 million, or $1.09 per share, as a result
of tax rate reductions. Note on forward looking-information 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, through the ingenuity of it's employees located across
Canada and in the United States, intends to be the safest, and most
fluid railway in North America. Our people are the key to
delivering innovative transportation solutions to our customers and
to ensuring the safe operation of our trains through the more than
900 communities where we operate. Our combined ingenuity makes CPR
a better place to work, rail a better way to ship, and North
America a better place to live. Come and visit us at
http://www.cpr.ca/ to see how we can put our ingenuity to work for
you. DATASOURCE: Canadian Pacific Railway CONTACT: Media, Leslie
Pidcock, Tel.: (403) 319-6878, e-mail: ; Investment Community,
Janet Weiss, Assistant Vice-President Investor Relations, Tel.:
(403) 319-3591, e-mail:
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