REFILE-UPDATE 1-CP Rail profit jumps helped by higher freight revenue
* Fourth-quarter adjusted earnings per share C$1.91 vs est C$1.95
* Revenue rises 7 pct to C$1.6 bln
* Operating ratio improves 890 basis points to 65.9 pct
* Sees 2014 adj profit up 30 pct or more, rev growth of 6-7 pct
Jan 29 (Reuters) - Canadian Pacific Railway , Canada's second largest railway, reported a five-fold jump in fourth-quarter profit, as freight revenue rose 7 percent.
Shipping crude via railroads across North America has surged amid a boom in oil production that is exceeding pipeline capacity. But a series of disastrous train derailments in the past year has drawn intense scrutiny on the industry's safety.
CP Rail said on Wednesday it expects 2014 adjusted earnings to increase 30 percent or more and revenue to grow 6-7 percent, compared with 2013.
Net profit rose to C$82 million ($73 million), or 47 Canadian cents per share, in the quarter ended Dec. 31, from C$15 million, or 8 Canadian cents per share, a year earlier.
Excluding a pre-tax asset impairment charge of C$435 million and other one-time items, the company earned C$1.91 per share.
Analysts had expected earnings of C$1.95 per share, according to Thomson Reuters I/B/E/S.
Revenue was up 7 percent to C$1.6 billion.
CP Rail said its adjusted operating ratio improved 890 basis points to 65.9 percent. Operating ratio is the percentage of revenue needed to maintain operations and is a key measure of railroad efficiency. The lower the number the better.
The company forecast operating ratio would be 65 percent or lower in 2014.
CP Rail shares, which have risen about 40 percent in the last year, closed at C$158.15 on Tuesday on the Toronto Stock Exchange.
- Bible left in North Korean sailor's club triggered U.S. tourist's arrest
- Tape emerges of Clinton discussing bin Laden day before 9/11 attack
- U.S. House passes border-security funding bill to speed deportations |
- Israel looks for missing soldier; Hamas says he may have been killed |
- Exposure of health workers weakens Africa's Ebola fight