Canadian Pacific Railway 4Q Profit Falls on Acquisition, Fuel Costs

By Jeffrey T. Lewis

Canadian Pacific Railway Ltd. reported lower profit in the fourth quarter after operating expenses increased and the company logged costs related to its acquisition of Kansas City Southern.

The Calgary-based railway operator said net income fell to C$532 million, the equivalent of $417 million, from C$802 million in the fourth quarter of 2020. Earnings per share reached 74 Canadian cents from C$1.19 in the year-earlier quarter, while adjusted earnings per share fell to C$0.95 from C$1.01.

Revenue increased to C$2.04 billion from C$2.01 billion a year earlier.

Canadian Pacific completed the purchase of Kansas City Southern during the fourth quarter and accounted for C$157 million in costs related to the purchase.

Total operating expenses increased to C$1.21 billion from C$1.08 billion in the fourth quarter of 2020, with fuel costs rising to C$231 million from C$169 million.

Write to Jeffrey T. Lewis at [e-mail]

(END) Dow Jones Newswires

01-27-22 1641ET