Release Date: 19 December 2007
Release ID: 1391
Canadian Pacific (TSX/NYSE: CP) announced recently that adjusted diluted earnings per share for 2007 may be at the bottom of, or even below, the range announced earlier this year of from $4.30 to $4.45. This is a result of recent harsh weather conditions that caused disruptions in train operations in CP's busy Western corridor, and a lag in the fuel recovery program.
"Canadian Pacific has delivered solid growth in adjusted diluted EPS of 12 per cent for the first nine months of 2007," said Fred Green, President and CEO. "But with these stronger than expected headwinds in the fourth quarter, there is a risk that earnings growth may not reach the level that we expected for 2007 of nine per cent to 13 per cent. However, with a focus on execution excellence and cost management, we remain confident we will deliver our earnings target in 2008 of $4.70 to $4.85."
Mike Lambert, Chief Financial Officer added, "With higher than anticipated WTI prices and the 30-day lag between our fuel expenses and our fuel recovery, combined with the effects of the severe weather patterns we experienced in British Columbia in early December, there is a risk that earnings may fall below the bottom end of our guidance of $4.30 for the full year 2007."
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