Canadian Pacific makes voluntary prepayment to Canadian defined benefit pension plan
01 Dicembre 2009 - 1:30PM
PR Newswire (US)
CALGARY, Dec. 1 /PRNewswire-FirstCall/ -- Canadian Pacific
(TSX/NYSE: CP) today announced plans to accelerate funding of
future pension obligations through a voluntary prepayment in
December of approximately $500 million to the company's Canadian
defined benefit pension plan from cash on hand. "Canadian Pacific
remains committed to reducing indebtedness, extending debt
maturities and enhancing near-term liquidity," said Kathryn
McQuade, Executive Vice President and Chief Financial Officer. "The
voluntary pension prepayment will reduce volatility in future
pension funding requirements and provides greater predictability in
our cash flow." "The actions we have taken this year in the capital
markets, our asset monetization programs and effective cost
management initiatives have increased our financial flexibility in
a difficult economic climate," added Ms. McQuade. CP now estimates
its 2010 pension contributions to be between $150 and $200 million
after application of a portion of the prepayment. This range
replaces the previous estimate of $250 to $300 million provided in
Management's Discussion and Analysis for Third Quarter 2009, using
the same assumptions. 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; 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; labor 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, including ABCP; 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 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. About Canadian Pacific: 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 1,100 communities
where we operate. Come and visit us at http://www.cpr.ca/ to see
how we can put our ingenuity to work for you. Canadian Pacific is
proud to be the official rail freight services provider for the
Vancouver 2010 Olympic and Paralympic Winter Games. DATASOURCE:
Canadian Pacific CONTACT: Media: Mike LoVecchio, Sr. Manager -
Media Relations, (778) 772-9636, (416) 814-0948 24/7 Media Pager, ;
Investment Community, Janet Weiss, Assistant Vice-President
Investor Relations, (403) 319-3591,
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