Canadian Pacific Railway reported its net income in the fourth quarter of 2012 was C$15 million (about US$14.9 million), or $0.08 diluted earnings per share, plunging 93% from $219.9 million, or $1.10 diluted earnings per share, in the fourth quarter of 2011.
Quarterly revenue was $1.5 billion, rising 6% from $1.4 billion in the same quarter in 2011. The operating ratio, excluding significant items, was 74.8% in the fourth quarter, comparing favorably with 2011’s fourth quarter operating ratio of 78.5%.
The company said in a written statement that a $185 million impairment of Powder River Basin and other investments, an $80 million asset impairment of certain locomotives and a $53 million labor restructuring charge impacted fourth-quarter earnings.
In the fourth quarter, industrial and consumer products revenue rose by 16%, grain by 10%, automotive by 5% and intermodal by 2%. Forest products revenue fell by 2% and coal dropped by 1%. Sulphur and fertilizers revenue was basically flat.
For the full year of 2012, profit dropped 15% year-over-year from $566.9 million to $481.3 million. Yearly revenue was $5.5 billion, increasing 10% from $5.0 billion in 2011.
For 2013, the company expects revenue growth to be in the high single digits and the operating ratio to be in the low 70s.