CP Reports First Quarter Earnings

CALGARY — Canadian Pacific Railway announced its first-quarter 2011 results, reporting net income in the first-quarter was $33.7 million and diluted earnings per share were $0.20.

As previously announced, operations were impacted by unusually severe winter weather decreasing shipping volumes and increasing costs.

“We are intensely focused on improving network velocity and service reliability,” said Fred Green, President and Chief Executive Officer. “Demand is strong and we have additional resources coming online to meet our customers’ growth.”

— Total revenues were $1.2 billion, essentially flat

— Operating expenses were $1.1 billion, an increase of $94.0 million

— Average fuel price was $3.12 U.S. dollars per U.S. gallon, an increase of 28 percent

— Operating income was $109.2 million, a decrease of $97.4 million

— Net income was $33.7 million, a decrease of $67.3 million

— Diluted earnings per share were $0.20 per share, a decline of $0.40 per share

“The first quarter was an extremely difficult winter with weather-related outages significantly constraining our capacity and our service to our customers,” added Fred Green. “We remain committed to delivering our two- to four-year target of a low 70’s operating ratio and providing a quality service offering.”