(The following story by Thomas L. Gallagher appeared on The Journal of Commerce website on April 28, 2010.)
WASHINGTON, D.C. Canadian Pacific Railway boosted profit 74 percent in the first quarter as an improved economy sparked higher revenue and lower expenses.
Net income in the first quarter was $98.7 million, an increase of 74 per cent from $56.3 million in first-quarter 2009.
"We put in a solid performance this quarter and our results reflect both improvements in the economy and CP's proven ability to rapidly adjust to changes in our customers' demands," said Fred Green, President and CEO.
Total revenue grew 5 percent to $1.18 billion as operating expenses fell 2 percent to $950 million. Operating income increased 55 percent to $202.4 million. Operating ratio improved 570 basis points to 82.4 percent.
The improved performance overcame losses associated with currency exchange. CP had a net foreign exchange loss after tax of $2.96 million on long-term debt, compared with a gain of $6.9 million after tax in first quarter 2009.
