Contact: Danelle Wettstein Page Content: Canadian Pacific Railway Limited (TSX/NYSE: CP) announced its first-quarter results today.¤ Net income in the first-quarter was $100 million, an increase of 74 per cent from $57 million in first-quarter 2009 and diluted earnings per share were $0.59, up from $0.36 in first-quarter 2009.¤ "We put in a solid performance this quarter and our results reflect both improvements in the economy and CP's proven ability to rapidly adjust to changes in our customers' demands," said Fred Green, President and CEO.¤ "Our ongoing commitment to service reliability, safety and managing our productivity objectives will continue to drive shareholder value." FIRST-QUARTER 2010 COMPARED WITH FIRST-QUARTER 2009: Total revenues were $1.2 billion, up five per cent from $1.1 billion Operating expenses were $962 million, down two per cent from $977 million Operating income increased to $205 million from $132 million, or 55 per cent Operating ratio improved 570 basis points to 82.4 per cent Diluted earnings per share increased to $0.59 from $0.36, or 64 per cent Adjusted diluted earnings per share increased to $0.60 from $0.32, or 88 per cent Presentation of non-GAAP earnings Diluted earnings per share, excluding foreign exchange gains and losses on long-term debt and other specified items, is also referred to in this news release as "adjusted diluted earnings per share".¤¤¤ CP presents non-GAAP earnings measures in this news release to provide an additional basis for evaluating underlying earnings and liquidity trends in its business that can be compared with prior periods' results of operations.¤ When foreign exchange gains and losses on long-term debt and other specified items are excluded from diluted earnings per share, income and income tax expense, these become non-GAAP measures.¤ Capital program is a non-GAAP measure.¤ These non-GAAP earnings measures exclude foreign currency translation effects on long-term debt and the tax thereon, which can be volatile and short term.¤ The impact of volatile short-term exchange rate fluctuations on foreign-denominated debt is only realized when long-term debt matures or is settled. In addition, these non-GAAP measures exclude other specified items (described below) that are not a part of CP's normal ongoing revenues and operating expenses.¤¤A reconciliation of income, excluding foreign exchange gains and losses on long-term debt and other specified items, to net income as presented in the financial statements is detailed in the attached Summary of Rail Data.¤¤ Other specified items are material transactions that may include, but are not limited to, restructuring and asset impairment charges, gains and losses on non-routine sales of assets, unusual income tax adjustments, and other items that do not typify normal business activities. The non-GAAP earnings measures described in this news release have no standardized meanings and are not defined by¤accounting principles generally accepted in the United States and, therefore, are unlikely to be comparable to similar measures presented by other companies.¤ FOREIGN EXCHANGE GAIN AND LOSS ON LONG-TERM DEBT AND OTHER SPECIFIED ITEMS CP had a net foreign exchange loss after tax of $3 million on long-term debt in the first quarter of 2010, compared with a gain of $7 million after tax in first-quarter 2009. As part of a consolidated financing strategy, CP structures its U.S. dollar long-term debt in different taxing jurisdictions.¤ As well, a portion of this debt is designated as a net investment hedge against the net investment in foreign subsidiaries.¤ Although the taxes on foreign exchange gains and losses on long-term debt generally offset one another, because they may be in different tax jurisdictions, the resulting net tax can vary significantly.¤ Other specified items in the first quarter of 2010 include an increase to the estimated fair value of the investment in Long-Term Floating Rate Notes of $1.0 million ($0.9 million after tax).¤ There were no similar other specified items in the first quarter of 2009. CP began reporting its financial results in accordance with U.S. GAAP as at January 1, 2010.¤ All prior period comparative numbers contained in this release are to U.S. GAAP.¤ Additional historical U.S. GAAP financial reports can be found at www.cpr.ca.¤ Note on forward-looking information This news release contains certain forward-looking statements relating but not limited to our operations, pension obligations and tax rates.¤ Undue reliance should not be placed on forward-looking information as actual results may differ materially.¤¤ By its nature, CP's forward-looking information involves numerous assumptions, inherent risks and uncertainties, including, but not limited to, the following factors: changes in business strategies; general North American and global economic, credit and business conditions; risks in agricultural production such as weather conditions and insect populations; the availability and price of energy commodities; the effects of competition and pricing pressures; industry capacity; shifts in market demand; changes in laws and regulations, including regulation of rates; changes in taxes and tax rates; potential increases in maintenance and operating costs; uncertainties of litigation; labour disputes; risks and liabilities arising from derailments; transportation of dangerous goods, timing of completion of capital and maintenance projects; currency and interest rate fluctuations; effects of changes in market conditions and discount rates on the financial position of pension plans and investments; and various events that could disrupt operations, including severe weather conditions, security threats and governmental response to them, and technological changes. There are factors that could cause actual results to differ from those described in the forward-looking statements contained in this news release.¤ These more specific factors are identified and discussed elsewhere in this news release with the particular forward-looking statement in question.¤¤ Except as required by law, CP undertakes no obligation to update publicly or otherwise revise any forward-looking information, whether as a result of new information, future events or otherwise. About Canadian Pacific Canadian Pacific, through the ingenuity of its employees located across Canada and in the United States, remains committed to being the safest, most fluid railway in North America.¤ Our people are the key to delivering innovative transportation solutions to our customers and to ensuring the safe operation of our trains through the more than 1,100 communities where we operate.¤ Come and visit us at www.cpr.ca to see how we can put our ingenuity to work for you.¤ Contacts: Media¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤ Investment Community Mike LoVecchio¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤ ¤¤¤Janet Weiss Senior Manager - Media Relations¤¤¤¤¤ ¤¤¤AVP - Investor Relations Canadian Pacific¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤ Canadian Pacific Tel.: (778) 772-9636¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤ Tel.: (403) 319-3591 24/7 Media Pager: (416) 814-0948¤¤¤¤¤¤ e-mail:¤ investor@cpr.ca e-mail:¤ mike_lovecchio@cpr.ca¤¤¤ News Release Date: 4/28/2010 12:00 AM Location: Calgary, Alberta News Type: Investors Is Featured: No More...
