Railroaders place to shoot the shit.

For the period ended Dec. 31, CP Rail profit rose to $194-million ($1.15 a share), up from $188.1-million ($1.22) in the fourth quarter of 2008.

For 2009, profit held steady, up about 1 percent to $612.4-million ($3.68), compared with $607.2-million ($3.95) in 2008.

Revenue in the quarter dropped 16 percent to $1.1-billion from $1.3-billion, although the company also cut operating expenses 17 percent to $853-million from $1-billion.

Over the course of the year, CP Rail revenues were down 18 percent to $4.3-billion, compared with $5.2-billion in 2008.

Operating expenses totaled $3.4-billion, down 17 percent from $4.1-billion.

"We have come through an extraordinary year of economic challenges and we met these with focused productivity initiatives that have delivered sustainable improvements," Fred Green, chief executive with CP Rail, said in a release. "Markets remain uncertain and we will continue to drive efficiency while delivering a reliable service."

Looking ahead to 2010, CP Rail plans to spend between $680-million and $730-million on capital programs, including $585-million on track infrastructure renewal.

The company also estimates its 2010 pension contributions to be between $150-million and $200-million, up about $50-million on 2009 due to a decrease in the discount rate and phasing in of 2008 equity losses.

CP Rail already made a voluntary prepayment of $500-million into the plan in December 2009.

Also of note, the company got dinged for $1.4-million on foreign exchange losses for its long-term debt in the quarter, compared with a $22-million gain in the same period last year.

For the year, CP Rail suffered a foreign exchange loss on long-term debt of $26-million, compared with a gain of $22-million in 2008.

CP Rail is one of Canada's largest railways operating across more than 1,100 communities.

(The preceding article by Eric Lam was published January 28, 2010, by the Financial Post.)