Relatively flat revenues from grain operations had a dampening effect
on profits at Canada’s two national railways last year.
Both Canadian National Railway and Canadian Pacific Railway reported
sizeable profits for the fiscal year that ended Dec. 31, 2001.
CN’s earnings were up 11 percent to $1.04 billion on revenues of $5.65
billion, while CPR’s profits declined by eight percent to $370 million
on revenues of $3.7 billion.
At CN, grain and fertilizer shipments were again the biggest revenue
producers, but registered an increase of just two percent from the
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previous year to $1.16 billion.
Grain and fertilizer volumes were up, with the railway shipping 590,000
carloads of grain, four percent higher than 2000.
At CPR, grain led all other commodities with revenues of $749 million,
but that was down slightly from the previous year’s $755 million.
CPR handled fewer grain cars in 2001, shipping 343,000 cars, down 2.4
percent from the previous year.
CN president and chief executive officer Paul Tellier described 2001 as
a year of “outstanding financial performance,” saying the company’s
disciplined approach to revenue growth, cost control, service and
acquisitions creates real value for shareholders.
Total revenues for the year were up four percent to $5.65 billion,
while operating expenses were five percent lower at $3.97 billion.
Operating income of $1.68 billion was two percent higher. Earnings per
share were $5.23 per diluted share, compared with the previous year’s
$4.67.
CPR president Robert Ritchie said the company’s revenue growth in 2001
was hindered by the effects of a slowing economy, lower Canadian grain
shipments in the last half of the year and weak demand for sulfur and
fertilizers.
Revenues of $3.5 billion were unchanged from the previous year, while
total operating expenses of $2.86 billion were up two percent. Diluted
earnings per share were $2.58, down from the previous year’s $3.35.
