Wednesday, July 23, 2008

CP Rail profit hurt by U.S. woes, fuel costs

TORONTO (Reuters) - Canadian Pacific Railway Ltd (CP.TO: Quote, Profile, Research) said on Tuesday its quarterly profit slumped nearly 40 percent amid spiraling fuel costs and a sluggish U.S. economy which curbed shipments, compelling the company to cut its full-year earnings forecast.

The carrier earned C$154.9 million, or C$1.00 a share, during the second quarter through June 30. That compares with a profit of C$256.7 million, or C$1.64 a share, a year earlier.

Analysts, on average, had expected earnings of 99 Canadian cents a share, on revenue of C$1.25 billion, according to Reuters Estimates.

Canada's No. 2 railway, which also operates in the northern United States, said quarterly revenue nudged higher to C$1.22 billion, from C$1.215 billion a year earlier.

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