CP posts record earnings

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Published: January 29, 2013

Canadian Pacific Railway earned record revenues for moving North American grain to market during the last three months of 2012.

Fourth quarter earnings for grain movement were higher than any other three-month period in CP’s history, said Jane O’Hagan, the company’s chief marketing officer.

Year-over-year, grain revenues for the three-month period ending Dec. 31 were up 12 percent over the same period in 2011.

“In grain, for the quarter, revenue was up 12 percent and we had a record revenue for grain in a quarter,” O’Hagan said during a Jan. 29 conference call with investors.

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“Our (grain car) units were up one percent, reflecting a strong demand domestically and globally (and) volumes were well above our three- and five-year averages, approaching our record Q4 of last year.”

Short haul grain exports to the United States were down, but the company did a good job of capturing Canadian grain business and is well positioned to service an integrated North American grain market, she added.

“We’ve had great feedback from our customers on servicing grain … and we are now moving more grain with fewer assets based on new levels of productivity and velocity,” O’Hagan said.

“With our strong service and unique network, we are very well positioned to leverage the movement to a North American grain marketplace, post the Canadian Wheat Board.”

For the entire year, CP’s overall freight revenue from all business segments was up 10 percent in 2012, nine percent after currency adjustments.

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Brian Cross

Brian Cross

Saskatoon newsroom

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