Canadian Pacific’s Profit Plummets 93 Percent

Class I rail carrier Canadian Pacific Railway reported profit in the fourth quarter of 2012 was C$15 million (about US$14.9 million), plummeting 93 percent from $219.9 million in the fourth quarter of 2011.

Quarterly revenue was $1.5 billion, rising 6 percent from $1.4 billion in the same quarter in 2011.

A $185 million impairment of Powder River Basin and other investments, an $80 million asset impairment of certain locomotives and a $53 million labor restructuring charge affected fourth quarter earnings, the company said in a written statement.

For the full year of 2012, profit dropped 15 percent year-over-year from $566.9 million to $481.3 million. Yearly revenue was $5.5 billion, increasing 10 percent from $5.0 billion in 2011.

For 2013, the company expects revenue growth to be in the high single digits.