Four out of five CP divisions see profits

CALGARY, ALTA, April 25-Canadian Pacific Ltd. reported that four out of its five subsidiaries enjoyed higher profits this first quarter with a total of $535 million or $1.69 per share, compared with $305.7-million or 93 cents last year. Revenue was $5.37 billion, up 53% last year’s $3.49 billion and cash flow was $1,139 million, ahead 57% to $3.62 per common share.

Canadian Pacific Railway was the lone subsidiary that failed to post a profit, which fell 19% from $187 million in the first quarter of 2000. While freight revenues were up modestly, operating expenses rose by 6% due largely to harsher winter operating conditions in the east and mid-west and higher fuel prices, CPR said.

Operating expenses for CPR increased to $766 million from $726 million last year. Despite tough operating conditions, the railway says it improved locomotive utilization by 3%, fuel consumption by 4%, train weights by 2% and gross-ton-miles per employee by 4% compared to the same period last year.

Canadian Pacific’s profit jump is attributed mainly to rising natural gas prices at PanCanadian Petroleum Ltd., which reported operating income up 136% to $782 million, setting record results for the eighth consecutive quarter. Without the PanCanadian numbers, CP’s first-quarter income before goodwill charges would have been down 21%.