Canadian Pacific Railway profit rises on gains

Canadian Pacific Railway profit up on asset sales gains as revenue tumbles 20 pct

• On 12:03 pm EDT, Tuesday October 27, 2009

CALGARY, Alberta (AP) -- Canadian Pacific Railway Ltd. said Tuesday its profit rose 14.5 percent in the third quarter as gains on asset sales more than offset the impact of a steep drop in revenue.

The railway's revenue from operations fell 20 percent as most of its freight segments showed the effect of a slow economy.

Canadian Pacific said Tuesday its profit rose to 195.4 million Canadian dollars (US$183.2 million) in the July-September quarter, up from 170.7 million Canadian dollars a year ago.

The latest earnings results include 68 million Canadian dollars (US$64 million) from the sale of its former head office in Montreal and some land in western Canada.

The company, which operates in both Canada and the northern United States, said revenue fell to 1.06 billion Canadian dollars (US$99 billion) from 1.34 billion Canadian dollars a year ago.

The declines covered most freight types.

The railway's revenues from coal dropped 41.3 million Canadian dollars to 119.7 million Canadian dollars, sulphur and fertilizers fell 45.8 million Canadian dollars to 80.3 million Canadian dollars and forest products fell 23.6 million Canadian dollars to 45.3 million Canadian dollars.

Meanwhile at industrial and consumer products, the railway's third-biggest revenue generator, revenue declined 57.7 million Canadian dollars to 191.6 million Canadian dollars while automotive shrank 24.9 million Canadian dollars to 59.6 million Canadian dollars.

The only freight segment showing a revenue gain was grain handling, which rose by 17.2 million Canadian dollars to 279.6 million Canadian dollars.

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