Jump in grain revenue helps CP to record gross

Substantially higher freight revenue per carload of grain, compared to 2012, has played a part in helping Canadian Pacific Railway (CP) to its highest-grossing fourth quarter and year-end in 2013.

Calgary-based CP on Wednesday announced overall net income of $82 million on a quarterly-record $1.607 billion in revenues for its fourth quarter ending Dec. 31, up from $15 million on $1.502 billion in the year-earlier Q4.

The company also booked full-year profit of $875 million on a record $6.133 billion in revenues, up from $484 million on $5.695 billion in fiscal 2012.

CP’s Q4 gross revenue on grain traffic came in at $385 million, up eight per cent from $355 million in the year-earlier period. For the year, CP booked total grain revenue of $1.3 billion, up 11 per cent from $1.172 billion in 2012.

The railway moved about 121,000 carloads of grain in Q4, down one per cent from the year-earlier period, and about 438,000 carloads of grain overall in 2013, up one per cent from 2012.

The gross grain revenue applied to carloads moved translates to revenue per grain carload of $3,161 for Q4 and $2,964 for full-year 2013 — both up nine per cent from the year-earlier periods.

CP’s gross revenue from fertilizer and sulphur traffic came in five per cent lower for Q4 at $126 million, but up 10 per cent for the full year at $570 million.

In revenue per carload of fertilizers and sulphur, CP booked $3,065 for Q4 and $3,083 for the full year, down one per cent and up five per cent respectively from the year-earlier periods.

“The transformational pace of change at CP has definitely exceeded expectations,” CP CEO Hunter Harrison said in the company’s year-end release Wednesday.

“We entered 2013 with an aggressive agenda of change and financial targets that would put us squarely in the path of achieving our goal of once again becoming an industry leader… Riding this positive momentum, I fully anticipate that 2014 will be another year of solid returns for our shareholders.” — AGCanada.com Network

Related stories:
CP to shed U.S. Plains grain track, Jan. 2, 2014
CP over, CN under revenue cap from Prairie grain, Dec. 16, 2013

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