CALGARY, Jan. 27 /PRNewswire-FirstCall/ -- Canadian Pacific Railway
Limited (TSX/NYSE: CP) announced its fourth-quarter and full-year
2008 results today. Net income was $201 million down from $342
million in fourth-quarter 2007 and diluted earnings per share were
$1.29, down from $2.21 in fourth-quarter 2007. This decrease is
primarily due to a future tax benefit that was recorded in
fourth-quarter 2007. Excluding the impact of foreign exchange on
long-term debt and other specified items, diluted earnings per
share were $1.15, down $0.05 or four per cent. Fourth-quarter
operating income (a non-GAAP measure) was $305 million, essentially
flat despite a charge of $23 million in 2008 as a result of a
federal court decision regarding the retroactive adjustment to the
grain revenue entitlement related to the 2007/2008 crop year.
SUMMARY OF FOURTH-QUARTER 2008 COMPARED WITH FOURTH-QUARTER 2007 -
Total revenues increased nine per cent to $1.3 billion from $1.2
billion - Operating expenses were $995 million an increase of 13
per cent from $883 million - Excluding foreign exchange gains and
losses on long-term debt and other specified items: - Diluted
earnings per share decreased to $1.15 from $1.20; and - Income
decreased four per cent to $178 million from $185 million At the
end of October, following the US Surface Transportation Board's
approval, CP assumed control of the Dakota, Minnesota & Eastern
Railroad (DM&E). For the first ten months of 2008, the DM&E
was accounted for on an equity basis. The results for the final two
months are consolidated on a line-by-line basis. The impact of a
stronger US dollar in the fourth quarter increased both freight
revenues and operating expenses that were denominated in US
currency. Relative to the US dollar, the Canadian dollar weakened
from $0.98 per US dollar in the fourth quarter of 2007 to $1.17 per
US dollar on average during the fourth quarter of 2008. Freight
revenues were up 10 per cent in the fourth quarter on foreign
exchange, continued pricing strength inclusive of fuel recoveries,
and DM&E revenues for the last two months of the quarter and
partially offset by the retroactive grain adjustment and lower
volumes. Revenues from industrial and consumer products increased
37 per cent, with grain revenues increasing 19 per cent and coal
and automotive both improving six per cent. Intermodal was flat
year-over-year. These gains were offset somewhat by decreases in
forest products and sulphur and fertilizers of seven and three per
cent respectively. Operating expenses increased 13 per cent in the
fourth quarter driven mainly by foreign exchange and the inclusion
of two months of DM&E expenses, partially offset by declining
volumes and the results of CP's cost management actions. SUMMARY OF
FULL YEAR 2008 COMPARED WITH FULL YEAR 2007 Net income for full
year 2008 was $619 million compared with $946 million in 2007.
Diluted earnings per share were $3.98, down from $6.08. This
decrease was mostly the result of a large foreign exchange gain on
long-term debt and a large future income tax benefit, both recorded
in 2007, and lower operating income in 2008. - Total revenues
increased five per cent to $4.9 billion from $4.7 billion -
Operating expenses increased nine per cent to $3.9 billion from
$3.5 billion - Free cash flow (a non-GAAP measure) was $231 million
- Excluding foreign exchange gains and losses on long-term debt and
other specified items: - Diluted earnings per share were $4.06,
down six per cent from $4.32; and - Income decreased six per cent
to $632 million from $673 million 2009 OUTLOOK Capital investment
in 2009 is expected to be in the range of $800 million to $820
million which is a reduction of approximately $200 million when
compared with the combined CP and DM&E cash capital investment
for the full year 2008. This 2009 outlook assumes an average
currency exchange rate of $1. 25 per U.S. dollar (US$0.80). CP is
updating its current outlook for upcoming pension contributions.
Based on preliminary calculations and subject to filing a January
1, 2009 valuation of the main Canadian pension plan with the
applicable regulatory agency, CP expects that aggregate
contributions to all of its defined benefit pension plans will
increase from C$95 million in 2008 to a range of C$150 million to
C$195 million for 2009. CP estimates its minimum required
contributions for 2010 to be in the range of C$295 million to C$345
million. The lower end of the ranges are based on the passing into
law of the temporary funding relief proposed by the Canadian
federal government in November 2008 and the upper ends do not
include any funding relief. The estimated contributions for 2010
assume the plans' investments in public equities, real estate and
infrastructure funds achieve, in aggregate, a 10 per cent return in
2009, and long Canada bond yields as at December 31, 2009 are 4.0
per cent (versus 3.45 per cent at December 31, 2008). FOREIGN
EXCHANGE GAINS AND LOSSES ON LONG-TERM DEBT AND OTHER SPECIFIED
ITEMS CP had a net foreign exchange loss of $4 million on long-term
debt (a gain of $22 million after tax) in the fourth quarter of
2008, compared with a net foreign exchange gain on long-term debt
of $8 million ($11 million after tax) in the fourth quarter of
2007. For the full year 2008, CP had a net foreign exchange loss on
long-term debt of $16 million (a gain of $22 million after tax)
compared with a net foreign exchange gain of $170 million ($126
million after tax) for the full year 2007. As part of a
consolidated financing strategy, CP structures its U.S. dollar
long-term debt in different taxing jurisdictions. As well, a
portion of this debt is designated as a net investment hedge
against net investment in U.S. subsidiaries. As a result, the tax
on foreign exchange gains and losses on long-term debt in different
taxing jurisdictions can vary significantly. At December 31, 2008
CP held investments in Canadian Non-Bank Asset Backed Commercial
Paper (ABCP) with an original cost of approximately $144 million.
In 2007, CP adjusted the estimated fair value of the investments
and took a charge of $22 million ($15 million after tax) and
classified the investments as long-term investments. In 2008, in
recognition of changing market conditions impacting these
investments, CP further adjusted the estimated fair value of the
investments and took an additional charge of $49 million ($35
million after tax). Continuing uncertainties regarding the value of
the assets which underlie the ABCP, the amount and timing of cash
flows and the outcome of the restructuring process could give rise
to a material change in the value of the Company's investments in
ABCP which would impact the Company's near-term earnings. In
fourth-quarter 2007, CP recorded a future income tax benefit of
$146 million as an other specified item. For the full year 2007, a
future income tax benefit of $163 million was recorded as an other
specified item. Presentation of non-GAAP earnings CP presents
non-GAAP earnings measures in this news release to provide an
additional basis for evaluating underlying earnings and liquidity
trends in its business that can be compared with prior periods'
results of operations. When foreign exchange gains and losses on
long-term debt and other specified items are excluded from diluted
earnings per share, income and income tax expense, these are
non-GAAP measures. Additional non-GAAP measures are free cash and
operating income. These non-GAAP earnings measures exclude foreign
currency translation effects on long-term debt, which can be
volatile and short term. 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 gains and losses on long-term debt and
other specified items, to net income as presented in the financial
statements is detailed in the attached Summary of Rail Data. In
addition, these non-GAAP measures exclude other specified items (as
described in this news release) that are not among CP's normal
ongoing revenues and operating expenses. Revenues less operating
expenses are referred to as "Operating Income". Free cash, as
referred to in this news release, is calculated as cash provided by
operating activities, less cash used in investing activities and
dividends paid, adjusted for the acquisition of DM&E, and
changes in cash and cash equivalent balances resulting from foreign
exchange fluctuations, and excluding changes in the accounts
receivable securitization program of $120 million, which was
terminated in the second quarter of 2008, and the investment in
ABCP. Free cash is adjusted for the DM&E acquisition and the
investment in ABCP, as these are not indicative of normal
day-to-day investments in CP's asset base. The securitization of
accounts receivable is a financing transaction, which is excluded
to clarify the nature of the use of free cash. As each of these
amounts are presented in the Statement of Consolidated Cash Flows,
with the exception of the accounts receivable securitization
program noted above, no reconciliation of free cash to changes in
Cash and Cash Equivalents has been provided. 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. The
non-GAAP earnings measures 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 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 and business conditions, including the
potential adverse impact of the current global credit crisis; risks
in agricultural production such as weather conditions and insect
populations; 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; effects of changes in market conditions
and discount rates on the financial position of pension plans and
investments; and various events that could disrupt operations,
including severe weather conditions, security threats and
governmental response to them, and technological changes. There are
factors that could cause actual results to differ from those
described in the forward-looking statements contained in this news
release. These more specific factors are identified and discussed
in the Outlook section and elsewhere in this news release with the
particular forward-looking statement in question. 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. Canadian
Pacific, through the ingenuity of its employees located across
Canada and in the United States, remains committed to being the
safest, 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. Canadian Pacific is proud to
be the official rail freight services provider for the Vancouver
2010 Olympic and Paralympic Winter Games. STATEMENT OF CONSOLIDATED
INCOME (in millions of Canadian dollars, except per share data) For
the three months ended December 31 2008 2007
------------------------ (unaudited) Revenues Freight $ 1,257.8 $
1,142.6 Other 41.9 45.7 ------------------------ 1,299.7 1,188.3
Operating expenses Compensation and benefits 349.4 308.4 Fuel 239.5
196.3 Materials 45.9 47.9 Equipment rents 45.8 45.1 Depreciation
and amortization 125.9 116.3 Purchased services and other 188.3
168.8 ------------------------ 994.8 882.8 ------------------------
Revenues less operating expenses 304.9 305.5 Equity income in
Dakota, Minnesota & Eastern Railroad Corporation (Note 2) 10.4
12.3 Other charges 8.3 8.5 Foreign exchange losses (gains) on
long-term debt 3.9 (8.3) Interest expense 73.8 63.4 Income tax
expense (recovery) 28.7 (88.1) ------------------------ Net income
$ 200.6 $ 342.3 ------------------------ ------------------------
Basic earnings per share $ 1.30 $ 2.23 ------------------------
------------------------ Diluted earnings per share $ 1.29 $ 2.21
------------------------ ------------------------ See notes to
interim consolidated financial information. STATEMENT OF
CONSOLIDATED INCOME (in millions of Canadian dollars, except per
share data) For the year ended December 31 2008 2007
------------------------ (unaudited) Revenues Freight $ 4,814.8 $
4,555.2 Other 116.8 152.4 ------------------------ 4,931.6 4,707.6
Operating expenses Compensation and benefits 1,305.5 1,284.2 Fuel
1,005.8 746.8 Materials 217.2 215.5 Equipment rents 182.2 207.5
Depreciation and amortization 491.3 472.0 Purchased services and
other 672.2 617.4 ------------------------ 3,874.2 3,543.4
------------------------ Revenues less operating expenses 1,057.4
1,164.2 Equity income in Dakota, Minnesota & Eastern Railroad
Corporation (Note 2) 51.3 12.3 Other charges 22.7 29.6 Change in
estimated fair value of Canadian third party asset-backed
commercial paper 49.4 21.5 Foreign exchange losses (gains) on
long-term debt 16.3 (169.8) Interest expense 261.1 204.3 Income tax
expense 140.2 144.7 ------------------------ Net income $ 619.0 $
946.2 ------------------------ ------------------------ Basic
earnings per share $ 4.03 $ 6.14 ------------------------
------------------------ Diluted earnings per share $ 3.98 $ 6.08
------------------------ ------------------------ See notes to
interim consolidated financial information. CONSOLIDATED STATEMENT
OF COMPREHENSIVE INCOME (in millions of Canadian dollars) For the
three months ended December 31 2008 2007 ------------------------
(unaudited) Comprehensive income Net income $ 200.6 $ 342.3 Other
comprehensive income Unrealized foreign exchange gain (loss) on:
Translation of the net investment in U.S. subsidiaries 210.3 (7.0)
Translation of U.S. dollar-denominated long-term debt designated as
a hedge of the net investment in U.S. subsidiaries (204.7) 3.5 Net
change in losses on derivatives designated as cash flow hedges
(12.7) (17.9) ------------------------ Other comprehensive loss
before income taxes (7.1) (21.4) Income tax recovery 31.9 7.2
------------------------ Other comprehensive income (loss) 24.8
(14.2) ------------------------ Comprehensive income $ 225.4 $
328.1 ------------------------ ------------------------ For the
year ended December 31 2008 2007 ------------------------
(unaudited) Comprehensive income Net income $ 619.0 $ 946.2 Other
comprehensive income Unrealized foreign exchange gain (loss) on:
Translation of the net investment in U.S. subsidiaries 307.5 (78.4)
Translation of U.S. dollar-denominated long-term debt designated as
a hedge of the net investment in U.S. subsidiaries (297.5) 71.0 Net
change in losses on derivatives designated as cash flow hedges
(16.1) (36.8) ------------------------ Other comprehensive loss
before income taxes (6.1) (44.2) Income tax recovery 44.8 3.4
------------------------ Other comprehensive income (loss) 38.7
(40.8) ------------------------ Comprehensive income $ 657.7 $
905.4 ------------------------ ------------------------ See notes
to interim consolidated financial information. CONSOLIDATED BALANCE
SHEET (in millions of Canadian dollars) December 31 December 31
2008 2007 -------------------------- (unaudited) Assets Current
assets Cash and cash equivalents $ 117.6 $ 378.1 Accounts
receivable and other current assets 713.1 542.8 Materials and
supplies 215.8 179.5 Future income taxes 76.5 67.3
-------------------------- 1,123.0 1,167.7 Investments (Note 2)
151.1 1,668.6 Net properties 12,576.9 9,293.1 Assets held for sale
39.6 17.0 Other assets and deferred charges 1,342.0 1,218.6
Goodwill and intangible assets (Note 2) 237.2 -
-------------------------- Total assets $ 15,469.8 $ 13,365.0
-------------------------- -------------------------- Liabilities
and shareholders' equity Current liabilities Short-term borrowing $
150.1 $ 229.7 Accounts payable and accrued liabilities (Note 5)
1,034.9 980.8 Income and other taxes payable 42.2 68.8 Dividends
payable 38.1 34.5 Long-term debt maturing within one year (Note 3)
44.0 31.0 -------------------------- 1,309.3 1,344.8 Deferred
liabilities 865.2 714.6 Long-term debt (Note 3) 4,685.8 4,146.2
Future income taxes 2,616.1 1,701.5 Shareholders' equity Share
capital 1,220.8 1,188.6 Contributed surplus 40.2 42.4 Accumulated
other comprehensive income 78.3 39.6 Retained income 4,654.1
4,187.3 -------------------------- 5,993.4 5,457.9
-------------------------- Total liabilities and shareholders'
equity $ 15,469.8 $ 13,365.0 --------------------------
-------------------------- Certain of the 2007 comparative figures
have been reclassified in order to be consistent with the 2008
presentation. See notes to interim consolidated financial
information. STATEMENT OF CONSOLIDATED CASH FLOWS (in millions of
Canadian dollars) For the three months ended December 31 2008 2007
------------------------ (unaudited) Operating activities Net
income $ 200.6 $ 342.3 Add (deduct) items not affecting cash:
Depreciation and amortization 125.9 116.3 Future income taxes 102.8
(129.6) Foreign exchange losses (gains) on long-term debt 3.9 (8.3)
Amortization of deferred charges 2.7 2.9 Equity income, net of cash
received (11.6) (10.1) Restructuring and environmental remediation
payments (17.0) (22.0) Other operating activities, net 12.5 30.2
Change in non-cash working capital balances related to operations
38.2 58.8 ------------------------ Cash provided by operating
activities 458.0 380.5 ------------------------ Investing
activities Additions to properties (285.5) (324.6) Additions to
investments and other assets (Note 4) (9.5) (4.7) Reductions in
investments and other assets (Note 4) 257.6 21.5 Additions to
investment in Dakota, Minnesota & Eastern Railroad Corporation
(Note 2) (0.3) (1,492.6) Net (costs)proceeds from disposal of
transportation properties (4.7) 5.6 ------------------------ Cash
used in investing activities (42.4) (1,794.8)
------------------------ Financing activities Dividends paid (38.1)
(34.5) Issuance of CP Common Shares 1.4 1.2 Net (decrease) increase
in short-term borrowing (129.9) 229.7 Issuance of long-term debt -
1,260.2 Repayment of long-term debt (Note 3) (252.6) (3.9)
------------------------ Cash (used in) provided by financing
activities (419.2) 1,452.7 ------------------------ Effect of
foreign exchange fluctuations on U.S. dollar-denominated cash and
cash equivalents 23.3 0.5 ------------------------ Cash position
Increase in cash and cash equivalents 19.7 38.9 Cash and cash
equivalents at beginning of period 97.9 339.2
------------------------ Cash and cash equivalents at end of period
$ 117.6 $ 378.1 ------------------------ ------------------------
Certain of the 2007 comparative figures have been reclassified in
order to be consistent with the 2008 presentation. See notes to
interim consolidated financial information. STATEMENT OF
CONSOLIDATED CASH FLOWS (in millions of Canadian dollars) For the
year ended December 31 2008 2007 ------------------------
(unaudited) Operating activities Net income $ 619.0 $ 946.2 Add
(deduct) items not affecting cash: Depreciation and amortization
491.3 472.0 Future income taxes 160.6 38.7 Change in estimated fair
value of Canadian third party asset-backed commercial paper 49.4
21.5 Foreign exchange losses (gains) on long-term debt 16.3 (169.8)
Amortization of deferred charges 10.1 12.1 Equity income, net of
cash received (46.6) (10.1) Restructuring and environmental
remediation payments (53.4) (61.0) Other operating activities, net
(35.4) 33.6 Change in non-cash working capital balances related to
operations (132.2) 50.3 ------------------------ Cash provided by
operating activities 1,079.1 1,333.5 ------------------------
Investing activities Additions to properties (892.3) (893.2)
Additions to investments and other assets (Note 4) (222.5) (19.2)
Reductions in investments and other assets (Note 4) 257.6 19.4
Additions to investment in Dakota, Minnesota & Eastern Railroad
Corporation (Note 2) (8.6) (1,492.6) Net proceeds from disposal of
transportation properties 9.7 14.9 Investment in Canadian third
party asset-backed commercial paper - (143.6)
------------------------ Cash used in investing activities (856.1)
(2,514.3) ------------------------ Financing activities Dividends
paid (148.7) (133.1) Issuance of CP Common Shares 19.7 30.4
Purchase of CP Common Shares - (231.1) Net (decrease) increase in
short-term borrowing (79.6) 229.7 Issuance of long-term debt
1,068.7 1,745.3 Repayment of long-term debt (Note 3) (1,340.7)
(187.7) Settlement of treasury rate lock (30.9) -
------------------------ Cash (used in) provided by financing
activities (511.5) 1,453.5 ------------------------ Effect of
foreign exchange fluctuations on U.S. dollar-denominated cash and
cash equivalents 28.0 (18.9) ------------------------ Cash position
(Decrease) increase in cash and cash equivalents (260.5) 253.8 Cash
and cash equivalents at beginning of period 378.1 124.3
------------------------ Cash and cash equivalents at end of period
$ 117.6 $ 378.1 ------------------------ ------------------------
Certain of the 2007 comparative figures have been reclassified in
order to be consistent with the 2008 presentation. See notes to
interim consolidated financial information. CONSOLIDATED STATEMENT
OF CHANGES IN SHAREHOLDERS' EQUITY (in millions of Canadian
dollars) For the three months ended December 31 2008 2007
------------------------ (unaudited) Share capital Balance,
beginning of period $ 1,218.9 $ 1,187.2 Shares issued under stock
option plans 1.9 1.4 ------------------------ Balance, end of
period 1,220.8 1,188.6 ------------------------ Contributed surplus
Balance, beginning of period 41.3 40.6 Stock compensation expense
(0.5) 1.1 Stock compensation related to shares issued under stock
option plans (0.6) 0.7 ------------------------ Balance, end of
period 40.2 42.4 ------------------------ Accumulated other
comprehensive income Balance, beginning of period 53.5 53.8 Other
comprehensive income (loss) 24.8 (14.2) ------------------------
Balance, end of period 78.3 39.6 ------------------------ Retained
income Balance, beginning of period 4,491.6 3,879.5 Net income for
the period 200.6 342.3 Dividends (38.1) (34.5)
------------------------ Balance, end of period 4,654.1 4,187.3
------------------------ Total accumulated other comprehensive
income and retained income 4,732.4 4,226.9 ------------------------
------------------------ Shareholders' equity, end of period $
5,993.4 $ 5,457.9 ------------------------ ------------------------
See notes to interim consolidated financial information.
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (in
millions of Canadian dollars) For the year ended December 31 2008
2007 ------------------------ (unaudited) Share capital Balance,
beginning of period $ 1,188.6 $ 1,175.7 Shares issued under stock
option plans 32.2 37.4 Shares purchased - (24.5)
------------------------ Balance, end of period 1,220.8 1,188.6
------------------------ Contributed surplus Balance, beginning of
period 42.4 32.3 Stock compensation expense 7.8 10.1 Stock
compensation related to shares issued under stock option plans
(10.0) - ------------------------ Balance, end of period 40.2 42.4
------------------------ Accumulated other comprehensive income
Balance, beginning of period 39.6 66.4 Adjustment for change in
accounting policy - 14.0 ------------------------ Adjusted balance,
beginning of period 39.6 80.4 Other comprehensive income (loss)
38.7 (40.8) ------------------------ Balance, end of period 78.3
39.6 ------------------------ Retained income Balance, beginning of
period 4,187.3 3,582.1 Adjustment for change in accounting policy -
4.0 ------------------------ Adjusted balance, beginning of period
4,187.3 3,586.1 Net income for the period 619.0 946.2 Shares
purchased - (206.6) Dividends (152.2) (138.4)
------------------------ Balance, end of period 4,654.1 4,187.3
------------------------ Total accumulated other comprehensive
income and retained income 4,732.4 4,226.9 ------------------------
------------------------ Shareholders' equity, end of period $
5,993.4 $ 5,457.9 ------------------------ ------------------------
See notes to interim consolidated financial information. NOTES TO
INTERIM CONSOLIDATED FINANCIAL INFORMATION DECEMBER 31, 2008
(unaudited) 1 Basis of presentation This unaudited interim
consolidated financial information and notes has been prepared
using accounting policies that are consistent with the policies
used in preparing Canadian Pacific Railway Limited's ("CP", "the
Company" or "Canadian Pacific Railway") 2007 annual consolidated
financial statements, except for disclosures. They do not include
all disclosures required under Generally Accepted Accounting
Principles ("GAAP") for annual financial statements and should be
read in conjunction with the annual consolidated financial
statements. CP's operations can be affected by seasonal
fluctuations such as changes in customer demand and weather-related
issues. This seasonality could impact quarter-over-quarter
comparisons. 2 Investments Dakota, Minnesota & Eastern Railroad
Corporation Dakota, Minnesota and Eastern Railroad Corporation
("DM&E") was acquired on October 4, 2007 and is wholly owned by
the Company. The purchase was subject to review and approval by the
U.S. Surface Transportation Board ("STB"), during which time the
shares of DM&E were placed in a voting trust. The STB approved
the purchase effective on October 30, 2008, at which time the
Company assumed control of the DM&E. The Company accounted for
its investment in DM&E using the equity method until the
acquisition was approved by the STB and the Company assumed
control. Equity income in DM&E for the period of October 4,
2007 to December 31, 2007 of $12.3 million and equity income in
2008 earned prior to STB approval effective October 30, 2008 of
$51.3 million, are recorded in "Equity income in Dakota, Minnesota
and Eastern Railroad Corporation" on the Statement of Consolidated
Income. Subsequent to October 30, 2008 the results of DM&E are
consolidated on a line-by-line basis. The DM&E was purchased
for $1.5 billion including goodwill of $180 million as at December
31, 2008. Future contingent payments of up to approximately US$1.05
billion plus certain interest and inflationary adjustments may
become payable up to December 31, 2025 upon achievement of certain
milestones. The contingent payments would be accounted for as an
increase in the purchase price. Intangible assets recognized as
part of the purchase price allocation have amortization periods for
the various categories of intangible assets that range from 4 to
100 years. Net of amortization of $2 million recognized since the
date of acquisition, intangible assets total $57 million as at
December 31, 2008. Goodwill and intangible assets are included on
the Consolidated Balance Sheet as at December 31, 2008 in "Goodwill
and intangible assets". 3 Long-term debt During the fourth quarter
of 2008, the Company repaid the remaining US$203.0 million of
bridge financing obtained in 2007 for the purchase of the DM&E
with cash of $248.0 million. 4 Additions to/Reductions in
investments and other assets Additions to/Reductions in investments
and other assets includes the acquisition of locomotive and freight
car assets which were purchased in anticipation of a sale and lease
back arrangement with a financial institution. For the three months
ended December 31, 2008, $9.5 million in assets were acquired and
$257.6 million were sold; and for the year ended December 31, 2008,
$222.5 million in assets were acquired and $257.6 million were
sold. For the three months ended December 31, 2007, $4.7 million in
assets were acquired and $19.2 million were sold; and for the year
ended December 31, 2007, $19.2 million in assets were acquired and
$20.2 million were sold. For the three months and year ended
December 31, 2008, a gain of $26.9 million was realized in these
sale and leaseback arrangements which will be deferred and
amortized over the term of the related leases which range from 18
to 20 years. 5 Grain Revenues During the three months ended March
31, 2008, the Canadian Transportation Agency announced a decision
directing a downward adjustment of the railway maximum revenue
entitlement for movement of regulated grain under the Canada
Transportation Act, for the period from August 1, 2007 to July 31,
2008. The Company appealed the decision to the Federal Court of
Appeal. In late November 2008, the Federal Court of Appeal released
its ruling dismissing the Company's appeal. As a result of the
downward adjustment to the maximum revenue entitlement, the Company
exceeded its revenue entitlement in the 2007-2008 crop year by
approximately $33.8 million and must pay this amount plus a 15%
penalty of approximately $5.1 million by January 30, 2009. As a
result, the Company increased its provision in the fourth quarter
for this liability by $23.0 million to $38.9 million. Summary of
Rail Data(1) ----------------------- (Including Reconciliation of
non-GAAP earnings to GAAP earnings) Fourth Quarter(1)
-------------------------------------------- 2008 2007 Variance %
-------------------------------------------- Financial (millions,
except --------------------------- per share data and ratios)(1)
----------------------------- Revenues -------- Freight revenue $
1,257.8 $ 1,142.6 $ 115.2 10.1 Other revenue 41.9 45.7 (3.8) (8.3)
--------------------------------- 1,299.7 1,188.3 111.4 9.4
--------------------------------- Operating expenses
------------------ Compensation and benefits 349.4 308.4 41.0 13.3
Fuel 239.5 196.3 43.2 22.0 Materials 45.9 47.9 (2.0) (4.2)
Equipment rents 45.8 45.1 0.7 1.6 Depreciation and amortization
125.9 116.3 9.6 8.3 Purchased services and other 188.3 168.8 19.5
11.6 --------------------------------- 994.8 882.8 112.0 12.7
--------------------------------- Operating income(2)(4) 304.9
305.5 (0.6) (0.2) Equity income (net of tax) in Dakota, Minnesota
& Eastern Railroad Corporation (DM&E) 10.4 12.3 (1.9)
(15.4) Other charges 8.3 8.5 (0.2) (2.4) Interest expense 73.8 63.4
10.4 16.4 Income tax expense before foreign exchange (gains) losses
on long-term debt and other specified items(2) 54.9 60.8 (5.9)
(9.7) --------------------------------- Income before foreign
exchange (gains) losses on long-term debt and other specified
items(2) 178.3 185.1 (6.8) (3.7) ---------------------------------
Foreign exchange (gains) ------------------------ losses on
long-term debt ------------------------ (FX on LTD) ----------- FX
on LTD 3.9 (8.3) 12.2 - Income tax on FX on LTD(3) (26.2) (3.1)
(23.1) - --------------------------------- FX on LTD (net of tax)
(22.3) (11.4) (10.9) - Other specified items ---------------------
Change in estimated fair value of Canadian third party asset-backed
commercial paper (ABCP) - - - - Income tax on special charges - - -
- --------------------------------- Change in estimated fair value
of ABCP (net of tax) - - - - Income tax benefits due to rate
reductions on opening future income tax balances - (145.8) 145.8 -
--------------------------------- Net income $ 200.6 $ 342.3 $
(141.7) (41.4) ---------------------------------
--------------------------------- Earnings per share (EPS)
------------------------ Basic earnings per share as determined by
GAAP $ 1.30 $ 2.23 $ (0.93) (41.7) Diluted earnings per share as
determined by GAAP $ 1.29 $ 2.21 $ (0.92) (41.6) Diluted EPS,
related to FX on LTD, net of tax (0.14) (0.07) (0.07) - Diluted
EPS, related to other specified items, net of tax - (0.94) 0.94 -
--------------------------------- Diluted earnings per share,
before FX on LTD and other specified items(2) $ 1.15 $ 1.20 $
(0.05) (4.2) Weighted average (avg) number of shares outstanding
(millions) 153.8 153.2 0.6 0.4 Weighted avg number of diluted
shares outstanding (millions) 155.0 154.6 0.4 0.3 Operating
ratio(4) (%) 76.5 74.3 2.2 - Year(1)
-------------------------------------------- 2008 2007 Variance %
-------------------------------------------- Financial (millions,
except --------------------------- per share data and ratios)(1)
----------------------------- Revenues -------- Freight revenue $
4,814.8 $ 4,555.2 $ 259.6 5.7 Other revenue 116.8 152.4 (35.6)
(23.4) --------------------------------- 4,931.6 4,707.6 224.0 4.8
--------------------------------- Operating expenses
------------------ Compensation and benefits 1,305.5 1,284.2 21.3
1.7 Fuel 1,005.8 746.8 259.0 34.7 Materials 217.2 215.5 1.7 0.8
Equipment rents 182.2 207.5 (25.3) (12.2) Depreciation and
amortization 491.3 472.0 19.3 4.1 Purchased services and other
672.2 617.4 54.8 8.9 --------------------------------- 3,874.2
3,543.4 330.8 9.3 --------------------------------- Operating
income(2)(4) 1,057.4 1,164.2 (106.8) (9.2) Equity income (net of
tax) in Dakota, Minnesota & Eastern Railroad Corporation
(DM&E) 51.3 12.3 39.0 317.1 Other charges 22.7 29.6 (6.9)
(23.3) Interest expense 261.1 204.3 56.8 27.8 Income tax expense
before foreign exchange (gains) losses on long-term debt and other
specified items(2) 193.4 269.8 (76.4) (28.3)
--------------------------------- Income before foreign exchange
(gains) losses on long-term debt and other specified items(2) 631.5
672.8 (41.3) (6.1) --------------------------------- Foreign
exchange (gains) ------------------------ losses on long-term debt
------------------------ (FX on LTD) ----------- FX on LTD 16.3
(169.8) 186.1 - Income tax on FX on LTD(3) (38.6) 44.3 (82.9) -
--------------------------------- FX on LTD (net of tax) (22.3)
(125.5) 103.2 - Other specified items --------------------- Change
in estimated fair value of Canadian third party asset-backed
commercial paper (ABCP) 49.4 21.5 27.9 - Income tax on special
charges (14.6) (6.5) (8.1) - ---------------------------------
Change in estimated fair value of ABCP (net of tax) 34.8 15.0 19.8
- Income tax benefits due to rate reductions on opening future
income tax balances - (162.9) 162.9 -
--------------------------------- Net income $ 619.0 $ 946.2 $
(327.2) (34.6) ---------------------------------
--------------------------------- Earnings per share (EPS)
------------------------ Basic earnings per share as determined by
GAAP $ 4.03 $ 6.14 $ (2.11) (34.4) Diluted earnings per share as
determined by GAAP $ 3.98 $ 6.08 $ (2.10) (34.5) Diluted EPS,
related to FX on LTD, net of tax (0.14) (0.81) 0.67 - Diluted EPS,
related to other specified items, net of tax 0.22 (0.95) 1.17 -
--------------------------------- Diluted earnings per share,
before FX on LTD and other specified items(2) $ 4.06 $ 4.32 $
(0.26) (6.0) Weighted average (avg) number of shares outstanding
(millions) 153.7 154.0 (0.3) (0.2) Weighted avg number of diluted
shares outstanding (millions) 155.5 155.6 (0.1) (0.1) Operating
ratio(4) (%) 78.6 75.3 3.3 - (1) The 2008 figures include the
results of the DM&E on an equity pickup basis through October
29, 2008 and on a fully consolidated basis for the period from
October 30 through December 31, 2008. (2) These earnings measures
have no standardized meanings prescribed by GAAP and are unlikely
to be comparable to similar measures of other companies. See note
on non-GAAP earnings measures attached to commentary. (3) Income
tax on FX on LTD is discussed in the Third Quarter 2008 MD&A in
the "Other Income Statement Items" section - "Income Taxes". (4)
Operating income is a non-GAAP term which represents "Revenue less
operating expenses". Operating ratio is the percentage derived by
dividing operating expenses by total revenues. Fourth Quarter(1)
-------------------------------------------- 2008 2007 Variance %
-------------------------------------------- Commodity Data
-------------- Freight Revenues (millions) - Grain $ 307.1 $ 257.5
$ 49.6 19.3 - Coal 139.5 131.2 8.3 6.3 - Sulphur and fertilizers
117.5 121.2 (3.7) (3.1) - Forest products 57.2 61.5 (4.3) (7.0) -
Industrial and consumer products 216.0 157.9 58.1 36.8 - Automotive
81.6 77.0 4.6 6.0 - Intermodal 338.9 336.3 2.6 0.8
--------------------------------- Total Freight Revenues $ 1,257.8
$ 1,142.6 $ 115.2 10.1 --------------------------------- Millions
of Revenue Ton-Miles (RTM) - Grain 8,612 8,283 329 4.0 - Coal 4,588
4,812 (224) (4.7) - Sulphur and fertilizers 4,053 5,202 (1,149)
(22.1) - Forest products 1,256 1,673 (417) (24.9) - Industrial and
consumer products 4,505 4,449 56 1.3 - Automotive 490 621 (131)
(21.1) - Intermodal 6,321 7,500 (1,179) (15.7)
--------------------------------- Total RTMs 29,825 32,540 (2,715)
(8.3) --------------------------------- Freight Revenue per RTM
(cents) - Grain 3.57 3.11 0.46 14.8 - Coal 3.04 2.73 0.31 11.4 -
Sulphur and fertilizers 2.90 2.33 0.57 24.5 - Forest products 4.55
3.68 0.87 23.6 - Industrial and consumer products 4.79 3.55 1.24
34.9 - Automotive 16.65 12.40 4.25 34.3 - Intermodal 5.36 4.48 0.88
19.6 Freight Revenue per RTM 4.22 3.51 0.71 20.2 Carloads
(thousands) - Grain 114.7 103.6 11.1 10.7 - Coal 68.7 64.9 3.8 5.9
- Sulphur and fertilizers 40.2 50.7 (10.5) (20.7) - Forest products
20.3 26.0 (5.7) (21.9) - Industrial and consumer products 89.3 80.4
8.9 11.1 - Automotive 30.4 41.8 (11.4) (27.3) - Intermodal 279.6
315.1 (35.5) (11.3) --------------------------------- Total
Carloads 643.2 682.5 (39.3) (5.8) ---------------------------------
Freight Revenue per Carload - Grain $ 2,677 $ 2,486 $ 191 7.7 -
Coal 2,031 2,022 9 0.4 - Sulphur and fertilizers 2,923 2,391 532
22.3 - Forest products 2,818 2,365 453 19.2 - Industrial and
consumer products 2,419 1,964 455 23.2 - Automotive 2,684 1,842 842
45.7 - Intermodal 1,212 1,067 145 13.6 Freight Revenue per Carload
$ 1,956 $ 1,674 $ 282 16.8 Year(1)
-------------------------------------------- 2008 2007 Variance %
-------------------------------------------- Commodity Data
-------------- Freight Revenues (millions) - Grain $ 970.0 $ 938.9
$ 31.1 3.3 - Coal 607.5 573.6 33.9 5.9 - Sulphur and fertilizers
508.6 502.0 6.6 1.3 - Forest products 239.3 275.8 (36.5) (13.2) -
Industrial and consumer products 766.1 627.9 138.2 22.0 -
Automotive 323.5 319.0 4.5 1.4 - Intermodal 1,399.8 1,318.0 81.8
6.2 --------------------------------- Total Freight Revenues $
4,814.8 $ 4,555.2 $ 259.6 5.7 ---------------------------------
Millions of Revenue Ton-Miles (RTM) - Grain 29,376 30,690 (1,314)
(4.3) - Coal 21,247 20,629 618 3.0 - Sulphur and fertilizers 19,757
21,259 (1,502) (7.1) - Forest products 5,677 7,559 (1,882) (24.9) -
Industrial and consumer products 18,296 16,987 1,309 7.7 -
Automotive 2,213 2,471 (258) (10.4) - Intermodal 27,966 29,757
(1,791) (6.0) --------------------------------- Total RTMs 124,532
129,352 (4,820) (3.7) --------------------------------- Freight
Revenue per RTM (cents) - Grain 3.30 3.06 0.24 7.8 - Coal 2.86 2.78
0.08 2.9 - Sulphur and fertilizers 2.57 2.36 0.21 8.9 - Forest
products 4.22 3.65 0.57 15.6 - Industrial and consumer products
4.19 3.70 0.49 13.2 - Automotive 14.62 12.91 1.71 13.2 - Intermodal
5.01 4.43 0.58 13.1 Freight Revenue per RTM 3.87 3.52 0.35 9.9
Carloads (thousands) - Grain 382.4 385.0 (2.6) (0.7) - Coal 281.0
269.1 11.9 4.4 - Sulphur and fertilizers 191.3 209.8 (18.5) (8.8) -
Forest products 91.8 114.1 (22.3) (19.5) - Industrial and consumer
products 340.9 313.3 27.6 8.8 - Automotive 141.3 168.5 (27.2)
(16.1) - Intermodal 1,216.0 1,238.1 (22.1) (1.8)
--------------------------------- Total Carloads 2,644.7 2,697.9
(53.2) (2.0) --------------------------------- Freight Revenue per
Carload - Grain $ 2,537 $ 2,439 $ 98 4.0 - Coal 2,162 2,132 30 1.4
- Sulphur and fertilizers 2,659 2,393 266 11.1 - Forest products
2,607 2,417 190 7.9 - Industrial and consumer products 2,247 2,004
243 12.1 - Automotive 2,289 1,893 396 20.9 - Intermodal 1,151 1,065
86 8.1 Freight Revenue per Carload $ 1,821 $ 1,688 $ 133 7.9 (1)
The 2008 figures include the results of the DM&E on an equity
pickup basis through October 29, 2008 and on a fully consolidated
basis for the period from October 30 through December 31, 2008.
Fourth Quarter(1) -------------------------------------------- 2008
2007 Variance % --------------------------------------------
Operations and Productivity ---------------------------
Consolidated Data including --------------------------- DM&E(1)
------- Freight gross ton-miles (GTM) (millions) 57,495 62,104
(4,609) (7.4) Revenue ton-miles (RTM) (millions) 29,825 32,540
(2,715) (8.3) Average number of active employees 16,113 15,801 312
2.0 Number of employees at end of period 15,783 15,382 401 2.6
Total operating expenses per RTM (cents) 3.34 2.71 0.63 23.2 Total
operating expenses per GTM (cents) 1.73 1.42 0.31 21.8 Compensation
and benefits expense per GTM (cents) 0.61 0.50 0.11 22.0 GTMs per
average active employee (000) 3,568 3,930 (362) (9.2) Miles of road
operated at end of period(2) 15,533 13,199 2,334 17.7 U.S. gallons
of locomotive fuel per 1,000 GTMs - freight & yard 1.26 1.23
0.03 2.4 U.S. gallons of locomotive fuel consumed - total
(millions)(3) 72.0 75.7 (3.7) (4.9) Terminal dwell time - AAR
definition (hours) 22.2 23.3 (1.1) (4.7) Average foreign exchange
rate (US$/Canadian$) 0.855 1.020 (0.165) (16.2) Average foreign
exchange rate (Canadian$/US$) 1.169 0.980 0.189 19.3 CP Data
excluding DM&E ---------------------- Number of employees at
end of period 14,715 15,382 (667) (4.3) FRA personal injuries per
200,000 employee-hours(4) 1.63 2.38 (0.75) (31.5) FRA train
accidents per million train-miles 1.91 1.69 0.22 13.0 Average train
speed - AAR definition (mph) 24.7 22.6 2.1 9.3 Car miles per car
day 143.9 140.0 3.9 2.8 Average daily total cars on-line - AAR
definition (000) 85.4 83.9 1.5 1.8 Average daily active car on-line
(000) 52.3 58.7 (6.4) (10.9) DM&E Data only -------------- FRA
personal injuries per 200,000 employee-hours 3.53 - - - FRA train
accidents per million train-miles 7.81 - - - Year(1)
-------------------------------------------- 2008 2007 Variance %
-------------------------------------------- Operations and
Productivity --------------------------- Consolidated Data
including --------------------------- DM&E(1) ------- Freight
gross ton-miles (GTM) (millions) 239,619 246,322 (6,703) (2.7)
Revenue ton-miles (RTM) (millions) 124,532 129,352 (4,820) (3.7)
Average number of active employees 15,935 15,675 260 1.7 Number of
employees at end of period 15,783 15,382 401 2.6 Total operating
expenses per RTM (cents) 3.11 2.74 0.37 13.5 Total operating
expenses per GTM (cents) 1.62 1.44 0.18 12.5 Compensation and
benefits expense per GTM (cents) 0.54 0.52 0.02 3.8 GTMs per
average active employee (000) 15,037 15,714 (677) (4.3) Miles of
road operated at end of period(2) 15,533 13,199 2,334 17.7 U.S.
gallons of locomotive fuel per 1,000 GTMs - freight & yard 1.22
1.21 0.01 0.8 U.S. gallons of locomotive fuel consumed - total
(millions)(3) 289.0 296.7 (7.7) (2.6) Terminal dwell time - AAR
definition (hours) 22.3 22.2 0.1 0.5 Average foreign exchange rate
(US$/Canadian$) 0.951 0.925 0.026 2.8 Average foreign exchange rate
(Canadian$/US$) 1.051 1.081 (0.030) (2.8) CP Data excluding
DM&E ---------------------- Number of employees at end of
period 14,715 15,382 (667) (4.3) FRA personal injuries per 200,000
employee-hours(4) 1.47 2.09 (0.62) (29.7) FRA train accidents per
million train-miles 1.87 2.05 (0.18) (8.8) Average train speed -
AAR definition (mph) 24.0 23.2 0.8 3.4 Car miles per car day 143.6
142.3 1.3 0.9 Average daily total cars on-line - AAR definition
(000) 84.5 82.0 2.5 3.0 Average daily active car on-line (000) 54.6
58.1 (3.5) (6.0) DM&E Data only -------------- FRA personal
injuries per 200,000 employee-hours 3.53 - - - FRA train accidents
per million train-miles 7.81 - - - (1) The 2008 figures include the
results of the DM&E on an equity pickup basis through October
29, 2008 and on a fully consolidated basis for the period from
October 30 through December 31, 2008. (2) Excludes track on which
CP has haulage rights. (3) Includes gallons of fuel consumed from
freight, yard and commuter service but excludes fuel used in
capital projects and other non- freight activities. (4) Certain
prior period figures have been revised to conform with current
presentation or have been updated to reflect new information.
Summary of Select Rail Data - CP Consolidated Including DM&E
------------------------------------------------------------
Proforma Basis for Comparative Purposes only (1)
------------------------------------------------ 2008
------------------------------------------------------ Q1 Q2 Q3 Q4
Year ---------- ---------- ---------- ---------- ----------
Financial (millions, ------------------- except ratios)
-------------- Revenues -------- Freight revenue $ 1,202.2 $
1,274.3 $ 1,340.0 $ 1,291.9 $ 5,108.4 Other revenue 23.0 27.8 25.8
42.2 118.8 ------------------------------------------------------
Total revenues 1,225.2 1,302.1 1,365.8 1,334.1 5,227.2 Operating
expenses ------------------ Compensation and benefits 348.1 333.3
331.0 356.2 1,368.6 Fuel 244.4 276.0 292.8 244.1 1,057.3 Materials
69.6 60.6 54.1 47.3 231.6 Equipment rents 49.5 49.9 48.6 47.1 195.1
Depreciation and amortization 130.2 135.2 131.8 130.2 527.4
Purchased services and other 167.3 174.6 173.9 187.2 703.0
------------------------------------------------------ Total
operating expenses 1,009.1 1,029.6 1,032.2 1,012.1 4,083.0
------------------------------------------------------ Operating
income(2)(3) $ 216.1 $ 272.5 $ 333.6 $ 322.0 $ 1,144.2
------------------------------------------------------
------------------------------------------------------ Operating
ratio (percentage)(3) 82.4 79.1 75.6 75.9 78.1 Freight Data
------------ Total Freight Revenues (millions) $ 1,202.2 $ 1,274.3
$ 1,340.0 $ 1,291.9 $ 5,108.4 Total Revenue Ton-Miles (RTM)
(millions) 33,414 34,344 32,786 30,509 131,053 Total Carloads
(thousands) 707.7 745.0 736.8 665.1 2,854.6 Freight Revenue per RTM
(cents) 3.60 3.71 4.09 4.23 3.90 Freight Revenue per Carload $
1,699 $ 1,710 $ 1,819 $ 1,942 $ 1,790 Operations and --------------
Productivity ------------ Freight gross- ton-miles (GTM) (millions)
63,239 65,562 63,592 58,701 251,094 Average number of active
employees 16,050 17,275 17,385 16,460 16,793 Number of employees at
end of period 16,305 17,462 17,249 15,783 15,783 (1) Fully
consolidated view of CP including DM&E operations had
consolidation occurred on January 1, 2008. (2) These earnings
measures have no standardized meanings prescribed by GAAP and are
unlikely to be comparable to similar measures of other companies.
See note on non-GAAP earnings measures attached to commentary. (3)
Operating income is a non-GAAP term which represents "Revenues less
operating expenses". Operating ratio is the percentage derived by
dividing operating expenses by total revenues. Summary of Select
Rail Data - CP Consolidated Including DM&E
------------------------------------------------------------
Proforma Basis for Comparative Purposes only(1)
----------------------------------------------- 2008
------------------------------------------------------ Q1 Q2 Q3 Q4
Year ------------------------------------------------------
Commodity Data -------------- Freight Revenues (millions) - Grain $
260.3 $ 228.0 $ 262.4 $ 319.9 $ 1,070.6 - Coal 143.9 176.7 161.0
141.3 622.9 - Sulphur and fertilizers 133.1 140.7 126.1 119.0 518.9
- Forest products 60.8 61.3 68.9 58.0 249.0 - Industrial and
consumer products 207.2 230.3 249.3 233.0 919.8 - Automotive 73.2
87.9 84.5 81.8 327.4 - Intermodal 323.7 349.4 387.8 338.9 1,399.8
------------------------------------------------------ Total
Freight Revenues $ 1,202.2 $ 1,274.3 $ 1,340.0 $ 1,291.9 $ 5,108.4
------------------------------------------------------ Millions of
Revenue Ton-Miles (RTM) - Grain 8,338 7,457 7,321 8,903 32,019 -
Coal 5,182 6,213 5,580 4,625 21,600 - Sulphur and fertilizers 5,474
5,620 4,785 4,077 19,956 - Forest products 1,601 1,514 1,535 1,277
5,927 - Industrial and consumer products 5,300 5,597 5,651 4,816
21,364 - Automotive 551 647 533 490 2,221 - Intermodal 6,968 7,296
7,381 6,321 27,966
------------------------------------------------------ Total RTMs
33,414 34,344 32,786 30,509 131,053
------------------------------------------------------ Freight
Revenue per RTM (cents) - Grain 3.12 3.06 3.58 3.59 3.34 - Coal
2.78 2.84 2.89 3.06 2.88 - Sulphur and fertilizers 2.43 2.50 2.64
2.92 2.60 - Forest products 3.80 4.05 4.49 4.54 4.20 - Industrial
and consumer products 3.91 4.11 4.41 4.84 4.31 - Automotive 13.28
13.59 15.85 16.69 14.74 - Intermodal 4.65 4.79 5.25 5.36 5.01
Freight Revenue per RTM 3.60 3.71 4.09 4.23 3.90 Carloads
(thousands) - Grain 114.8 110.2 112.0 123.4 460.4 - Coal 75.5 87.4
82.3 72.5 317.7 - Sulphur and fertilizers 53.2 54.8 46.7 40.7 195.4
- Forest products 26.2 24.9 25.7 20.8 97.6 - Industrial and
consumer products 104.7 112.4 110.8 97.6 425.5 - Automotive 36.6
40.2 34.7 30.5 142.0 - Intermodal 296.7 315.1 324.6 279.6 1,216.0
------------------------------------------------------ Total
Carloads 707.7 745.0 736.8 665.1 2,854.6
------------------------------------------------------ Freight
Revenue per Carload - Grain $ 2,267 $ 2,069 $ 2,343 $ 2,592 $ 2,325
- Coal 1,906 2,022 1,956 1,949 1,961 - Sulphur and fertilizers
2,502 2,568 2,700 2,924 2,656 - Forest products 2,321 2,462 2,681
2,788 2,551 - Industrial and consumer products 1,979 2,049 2,250
2,387 2,162 - Automotive 2,000 2,187 2,435 2,682 2,306 - Intermodal
1,091 1,109 1,195 1,212 1,151 Freight Revenue per Carload $ 1,699 $
1,710 $ 1,819 $ 1,942 $ 1,790 (1) Fully consolidated view of CP
including DM&E operations had consolidation occurred on January
1, 2008. DATASOURCE: Canadian Pacific Railway CONTACT: Media: Mike
LoVecchio, Tel.: (778) 772-9636, email: ; Investment Community:
Janet Weiss, Assistant Vice-President, Investor Relations, Tel.:
(403) 319-3591, email:
Copyright