Canadian Pacific announces solid fourth-quarter operating performance
Canadian Pacific announces solid fourth-quarter operating performance
PR Newswire
CALGARY, Jan. 29, 2013
CALGARY, Jan. 29, 2013 /PRNewswire/ - Canadian Pacific Railway Limited (TSX:
CP) (NYSE: CP) announced its fourth-quarter 2012 results today. CP's diluted
earnings per share, excluding significant items (*see Non-GAAP Measures below)
comprised of labour restructuring and asset impairment charges was $1.28.
This compares favourably with fourth quarter of 2011 diluted earnings per
share, exclusive of significant items of $1.11, an improvement of 15 per
cent. Reported diluted earnings per share for the fourth-quarter 2012,
inclusive of significant items, was $0.08. Reported diluted earnings per share
in fourth-quarter 2011, inclusive of significant items, was $1.30.
CP's operating ratio, excluding significant items (*see Non-GAAP Measures
below) was 74.8 per cent for fourth-quarter 2012, which compares favourably to
2011's operating ratio of 78.5 per cent. Reported operating ratio for
fourth-quarter 2012, inclusive of significant items was 96.0 per cent.
"Canadian Pacific is moving forward on our transformational journey to become
the most efficient railroad in North America," said E. Hunter Harrison,
President and Chief Executive Officer. "This quarter, CP saw strong
operating performance as we continued to implement significant changes to how
we run the railroad."
"Management made a number of hard decisions this quarter including booking
several significant items. With these decisions now behind us, we anticipate
record-setting financial and operational results starting in 2013," added
Harrison.
Fourth-Quarter Significant Items
Announced items that impacted reported fourth-quarter 2012 and 2011 earnings
include:
2012:
* $53 million labour restructuring charge ($39 million after tax), which
unfavourably impacted diluted earnings per share ("EPS") by 22 cents
* $185 million impairment of Powder River Basin and other investment ($111
million after tax), which unfavourably impacted diluted EPS by 64 cents
* $80 million asset impairment of certain locomotives ($59 million after
tax), which unfavourably impacted diluted EPS by 34 cents
2011:
* $6 million advisory fees related to shareholder matters, which
unfavourably impacted diluted EPS by 3 cents
* $37 million income tax benefit, which favourably impacted diluted EPS in
2011 by 22 cents
Financial Expectations for Full Year 2013
* Revenue growth to be in the high single digits
* Operating ratio to be in the low 70s
* Diluted EPS to be up in excess of 40 per cent versus 2012's diluted EPS,
excluding significant items (*see Non-GAAP Measures below) of $4.34
Key Assumptions for Full Year 2013
* Average fuel cost per gallon of US$3.45 per U.S. gallon
* Tax rate in the range of 25 per cent to 27 per cent
* Canadian to U.S. exchange rate at par
Defined Benefit Pension Expense Assumptions
* Defined benefit pension expense in 2013 and 2014 in the range of $50
million to $60 million per year, increasing to be in the range of $90
million to $110 million in 2015 and 2016
Conference Call Information
CP will discuss its results with analysts in a conference call beginning at
11:00 a.m. Eastern time (9:00 a.m. Mountain time) on January 29, 2013.
Conference Call Access
Toronto participants dial in number: (647) 427-7450
Operator assisted toll free dial in number: 1-888-231-8191
Callers should dial in 10 minutes prior to the call.
Webcast
For those with Internet access we encourage you to listen via CP's website at
www.cpr.ca. To access the webcast and the presentation material, click on the
"Invest In CP" tab.
A replay of the conference call will be available by phone through February
28, 2012 at 416-849-0833 or toll free 1-855-859-2056, password 85400106. A
webcast of the presentation and an audio file will be available at www.cpr.ca
under "Invest In CP" tab.
Non-GAAP Measures
We present non-GAAP measures and cash flow information to provide a basis for
evaluating underlying earnings and liquidity trends in our business that can
be compared with the results of our operations in prior periods. These
non-GAAP measures exclude significant items that are not among our normal
ongoing revenues and operating expenses. They have no standardized meaning
and are not defined by GAAP and, therefore, are unlikely to be comparable to
similar measures presented by other companies.
Diluted earnings per share, excluding significant items provides management
with a measure of earnings on a per share basis that can help in a
multi-period assessment of long-term profitability and also allows management
and other external users of our consolidated financial statements to compare
profitability on a long-term basis with that of our peers. U.S. GAAP reported
full year diluted earnings per share in 2012 was $2.79. Diluted earnings per
share, excluding significant items was $4.34, which excludes the fourth
quarter significant items discussed above as well as an additional $0.35
related to management transition costs, advisory fees related to shareholder
matters and an Ontario statutory tax rate change. U.S. GAAP reported full
year diluted earnings per share in 2011 was $3.34. Diluted earnings per
share, excluding significant items was $3.15, which excludes advisory fees
related to shareholder matters and a significant favourable tax item.
Operating ratio, excluding significant items provides a measure of the
profitability of the railway on an ongoing basis. It provides the percentage
of revenues used to operate the railway on an ongoing basis as it excludes
significant items.
For further information regarding non-GAAP measures see our Management's
Discussion and Analysis for the third quarter of 2012 or the document Non-GAAP
Measures on our web site at www.cpr.ca.
Note on forward-looking information
This news release contains certain forward-looking statements relating but not
limited to our operations, anticipated financial performance, planned capital
expenditures, and business prospects. Undue reliance should not be placed on
forward-looking information as actual results may differ materially. To the
extent that we have provided guidance that contains non-GAAP financial
measures, we may not be able to provide a reconciliation to the GAAP measure
due to unknown variables and uncertainty related to future results.
By its nature, CP's forward-looking information involves numerous assumptions,
inherent risks and uncertainties, including but not limited to the following
factors: changes in business strategies; general North American and global
economic, credit and business conditions; risks in agricultural production
such as weather conditions and insect populations; the availability and price
of energy commodities; the effects of competition and pricing pressures;
industry capacity; shifts in market demand; inflation; changes in laws and
regulations, including regulation of rates; changes in taxes and tax rates;
potential increases in maintenance and operating costs; uncertainties of
investigations, proceedings or other types of claims and litigation; labour
disputes; risks and liabilities arising from derailments; transportation of
dangerous goods; timing of completion of capital and maintenance projects;
currency and interest rate fluctuations; effects of changes in market
conditions and discount rates on the financial position of pension plans and
investments; and various events that could disrupt operations, including
severe weather, droughts, floods, avalanches and earthquakes as well as
security threats and governmental response to them, and technological
changes. Other risks are detailed from time to time in reports filed by CP
with securities regulators in Canada and the United States. Reference should
be made to "Management's Discussion and Analysis" in CP's annual and interim
reports, Annual Information Form and Form 40-F.
Except as required by law, CP undertakes no obligation to update publicly or
otherwise revise any forward-looking information, whether as a result of new
information, future events or otherwise.
About Canadian Pacific
Canadian Pacific (TSX:CP)(NYSE:CP) is a transcontinental railway in Canada and
the United States with direct links to eight major ports, including Vancouver
and Montreal, providing North American customers a competitive rail service
with access to key markets in every corner of the globe. CP is a low-cost
provider that is growing with its customers, offering a suite of freight
transportation services, logistics solutions and supply chain expertise. Visit
cpr.ca to see the rail advantages of Canadian Pacific.
CONSOLIDATED STATEMENTS OF INCOME
(in millions of Canadian dollars, except per share data)
(unaudited)
For the three months For the year
ended December 31 ended December 31
2012 2011 2012 2011
Revenues
Freight $ 1,464 $ 1,375 $ 5,550 $ 5,052
Other 38 33 145 125
Total revenues 1,502 1,408 5,695 5,177
Operating expenses
Compensation and 378 389 1,506 1,426
benefits
Fuel 256 267 999 968
Materials 60 58 238 243
Equipment rents 48 51 206 209
Depreciation and 140 123 539 490
amortization
Purchased services 242 217 940 874
and other
Asset impairment 265 - 265 -
(Note 2)
Labour restructuring 53 - 53 -
(Note 3)
Total operating expenses 1,442 1,105 4,746 4,210
Operating income 60 303 949 967
Less:
Other income and 3 10 37 18
charges
Net interest 69 61 276 252
expense
(Loss) income before income tax (12) 232 636 697
expense
Income tax (recovery) expense (27) 11 152 127
Net income $ 15 $ 221 $ 484 $ 570
Earnings per share
Basic earnings per $ 0.08 $ 1.31 $ 2.82 $ 3.37
share
Diluted earnings per $ 0.08 $ 1.30 $ 2.79 $ 3.34
share
Weighted-average number of
shares (millions)
Basic 173.3 169.8 171.8 169.5
Diluted 174.7 170.8 173.2 170.6
Dividends declared per share $ 0.3500 $ 0.3000 $ 1.3500 $ 1.1700
See notes to interim
consolidated financial
information.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in millions of Canadian dollars)
(unaudited)
For the three months For the year
ended December 31 ended December 31
2012 2011 2012 2011
Net income $ 15 $ 221 $ 484 $ 570
Net (loss) gain in foreign
currency translation
adjustments, net of hedging
activities (1) 8 11 -
Change in derivatives (2) (1) 9 (7)
designated as cash flow hedges
Change in defined benefit
pension and post-retirement
plans (211) (1,000) (50) (883)
Other comprehensive loss (214) (993) (30) (890)
before income taxes
Income tax recovery on above 58 250 -
items 240
Equity accounted investments (2) - (2) -
Other comprehensive loss (158) (743) (32) (650)
Comprehensive (loss) income $ (143) $ (522) $ 452 $ (80)
See notes to interim
consolidated financial
information.
CONSOLIDATED BALANCE SHEETS
(in millions of Canadian dollars)
(unaudited)
December 31 December 31
2012 2011
Assets
Current assets
Cash and cash equivalents $ 333 $ 47
Accounts receivable, net 546 518
Materials and supplies 136 138
Deferred income taxes 254 101
Other current assets 60 52
1,329 856
Investments (Note 2) 83 167
Net properties (Note 2) 13,013 12,752
Goodwill and intangible assets (Note 2) 161 192
Other assets 141 143
Total assets $ 14,727 $ 14,110
Liabilities and shareholders' equity
Current liabilities
Short-term borrowing $ - $ 27
Accounts payable and accrued liabilities (Note 3) 1,176 1,133
Long-term debt maturing within one year 54 50
1,230 1,210
Pension and other benefit liabilities 1,366 1,372
Other long-term liabilities (Note 3) 306 365
Long-term debt 4,636 4,695
Deferred income taxes 2,092 1,819
Total liabilities 9,630 9,461
Shareholders' equity
Share capital 2,127 1,854
Additional paid-in capital 41 86
Accumulated other comprehensive loss (2,768) (2,736)
Retained earnings 5,697 5,445
5,097 4,649
Total liabilities and shareholders' equity $ 14,727 $ 14,110
See notes to interim consolidated financial
information.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions of Canadian dollars)
(unaudited)
For the three months For the year
ended December 31 ended December 31
2012 2011 2012 2011
Operating activities
Net income $ 15 $ 221 $ 484 $ 570
Reconciliation of net income
to cash provided by (used in)
operating activities:
Depreciation and 140 123 539 490
amortization
Deferred income taxes (22) 68 140 187
Pension funding in excess (17) (607) (61) (647)
of expense
Asset impairment (Note 2) 265 - 265 -
Labour restructuring, net 50 - 50 -
(Note 3)
Other operating (3) (65) (84) (112)
activities, net
Change in non-cash working
capital balances related
to
operations 41 99 (5) 24
Cash provided by (used in) 469 (161) 1,328 512
operating activities
Investing activities
Additions to properties (336) (400) (1,148) (1,104)
Proceeds from the sale of 7 30 145 71
properties and other assets
Other (7) (4) (8) (11)
Cash used in investing activities (336) (374) (1,011) (1,044)
Financing activities
Dividends paid (61) (51) (223) (193)
Issuance of common shares 62 16 198 29
Issuance of long-term debt - 757 71 757
Repayment of long-term debt (9) (257) (50) (401)
Net increase (decrease) in - 28 (27) 28
short-term borrowing
Other 1 (3) 1 (3)
Cash (used in) provided by (7) 490 (30) 217
financing activities
Effect of foreign currency
fluctuations on U.S. dollar-
denominated cash and cash - (5) (1) 1
equivalents
Cash position
Increase (decrease) in cash and 126 (50) 286 (314)
cash equivalents
Cash and cash equivalents at 207 97 47 361
beginning of period
Cash and cash equivalents at end $ 333 $ 47 $ 333 $ 47
of period
Supplemental disclosures of cash
flow information:
Income taxes paid (refunded) $ 5 $ 1 $ (3) $ 4
Interest paid $ 84 $ 91 $ 278 $ 271
See notes to interim consolidated
financial information.
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(in millions of Canadian dollars, except common share amounts)
(unaudited)
Common Accumulated
shares Additional other Total
(in Share paid-in comprehensive Retained shareholders'
millions) capital capital loss earnings equity
Balance at 170.0 $ 1,854 $ 86 $ (2,736) $ 5,445 $ 4,649
January 1,
2012
Net income - - - - 484 484
Other - - - (32) - (32)
comprehensive
loss
Dividends - - - - (232) (232)
declared
Effect of - - 25 - - 25
stock-based
compensation
expense
Shares issued 3.9 273 (70) - - 203
under stock
option plans
Balance at 173.9 $ 2,127 $ 41 $ (2,768) $ 5,697 $ 5,097
December 31,
2012
Common Accumulated
shares Additional other Total
(in Share paid-in comprehensive Retained shareholders'
millions) capital capital loss earnings equity
Balance at 169.2 $ 1,813 $ 24 $ (2,086) $ 5,073 $ 4,824
January 1,
2011
Net income - - - - 570 570
Other - - - (650) - (650)
comprehensive
loss
Dividends - - - - (198) (198)
declared
Effect of - - 16 - - 16
stock-based
compensation
expense
Changes to - - 57 - - 57
stock-based
compensation
awards
Shares issued 0.8 41 (11) - - 30
under stock
option plans
Balance at 170.0 $ 1,854 $ 86 $ (2,736) $ 5,445 $ 4,649
December 31,
2011
See notes to interim consolidated financial
information.
NOTES TO INTERIM CONSOLIDATED FINANCIAL INFORMATION
December 31, 2012
(unaudited)
1 Basis of presentation
This unaudited interim consolidated financial information of Canadian Pacific
Railway Limited ("CP", or "the Company") reflects management's estimates and
assumptions that are necessary for its fair presentation in conformity with
accounting principles generally accepted in the United States of America
("GAAP"). This information does not include all disclosures required under
GAAP for annual and interim financial statements and should be read in
conjunction with the 2011 consolidated financial statements and 2012
consolidated interim financial statements. The accounting policies used are
consistent with the accounting policies used in preparing the 2011
consolidated financial statements.
CP's operations can be affected by seasonal fluctuations such as changes in
customer demand and weather-related issues. This seasonality could impact
quarter-over-quarter comparisons.
In management's opinion, the unaudited interim consolidated financial
information includes all adjustments necessary to present fairly such
information.
2 Asset impairment
For the three
months ended
(in millions of Canadian dollars) December 31, 2012
Powder River Basin impairment and other investment^(1) (a) $ 185
Impairment loss on locomotives (b) 80
Asset impairment, before tax $ 265
^(1)Includes impairment of other investment of $5 million ^
(a) Powder River Basin impairment
As part of the acquisition of Dakota, Minnesota & Eastern Railroad Corporation
("DM&E") in 2007, CP acquired the option to build a 260 mile extension of its
network into coal mines in the Powder River Basin ("PRB").
Due to continued deterioration in the market for domestic thermal coal,
including a sharp deterioration in 2012, in the fourth quarter of 2012 CP
deferred plans to extend its rail network into the PRB coal mines
indefinitely. The amount of the impairment was $180 million ($107 million
after tax). The impairment was comprised of the following and was charged
against income as an "Asset impairment":
For the three
months ended
(in millions of Canadian dollars) December 31, 2012
Option impairment $ 26
Construction plans, including capitalized interest 134
Land, land option appraisals, including capitalized interest 20
Total impairment $ 180
(b) Impairment loss on locomotives
In the fourth quarter of 2012, CP reached a decision to dispose of a certain
series of locomotives to improve operating efficiencies, and accordingly
performed an impairment test on these assets. The impairment test determined
that the net book value of these locomotives at the date of the impairment
test was $80 million higher than their estimated fair value. The impairment
charge of $80 million ($59 million after tax) was recorded as an "Asset
impairment" to be consistent with CP's policy to record a gain or loss for the
sale or retirement of larger groups of depreciable assets that are unusual,
and were not anticipated in depreciation studies.
3 Labour restructuring
In the fourth quarter of 2012, CP recorded a charge of $53 million ($39
million after tax) for a labour restructuring initiative which was included in
"Labour restructuring" in the Consolidated Statements of Income, and "Accounts
payable and accrued liabilities" and "Other long-term liabilities" in the
Consolidated Balance Sheets. The resulting position reductions are expected
to be completed by the end of 2014.
Summary of Rail Data
Fourth Quarter Year
2012 2011 Fav/(Unfav) % Financial 2012 2011 Fav/(Unfav) %
(millions, except
per share data)
Revenues
$ 1,464 $ 1,375 $ 89 6 Freight revenue $ 5,550 $ 5,052 $ 498 10
38 33 5 15 Other revenue 145 125 20 16
1,502 1,408 94 7 Total revenues 5,695 5,177 518 10
Operating
expenses
378 389 11 3 Compensation 1,506 1,426 (80) (6)
and benefits
256 267 11 4 Fuel 999 968 (31) (3)
60 58 (2) (3) Materials 238 243 5 2
48 51 3 6 Equipment rents 206 209 3 1
140 123 (17) (14) Depreciation 539 490 (49) (10)
and
amortization
242 217 (25) (12) Purchased 940 874 (66) (8)
services and
other
265 - (265) - Asset 265 - (265) -
impairment
53 - (53) - Labour 53 - (53) -
restructuring
1,442 1,105 (337) (30) Total operating 4,746 4,210 (536) (13)
expenses (OE)
60 303 (243) (80) Operating income 949 967 (18) (2)
Less:
3 10 7 70 Other income 37 18 (19) (106)
and charges
69 61 (8) (13) Net interest 276 252 (24) (10)
expense
(12) 232 (244) (105) (Loss) income 636 697 (61) (9)
before income tax
expense
(27) 11 38 345 Income tax 152 127 (25) (20)
(recovery)
expense
$ 15 $ 221 $ (206) (93) Net income $ 484 $ 570 $ (86) (15)
96.0 78.5 (17.5) (1,750) bps Operating ratio 83.3 81.3 (2.0) (200) bps
(%)
$ 0.08 $ 1.31 $ (1.23) (94) Basic earnings $ 2.82 $ 3.37 $ (0.55) (16)
per share
$ 0.08 $ 1.30 $ (1.22) (94) Diluted $ 2.79 $ 3.34 $ (0.55) (16)
earnings per
share
Shares
Outstanding
Weighted
average number
of shares
outstanding
173.3 169.8 3.5 2 (millions) 171.8 169.5 2.3 1
Weighted
average number
of diluted
shares
outstanding
174.7 170.8 3.9 2 (millions) 173.2 170.6 2.6 2
Foreign Exchange
Average foreign
exchange rate
1.01 0.98 (0.03) (3) (US$/Canadian$) 1.00 1.01 0.01 1
Average foreign
exchange rate
0.99 1.02 (0.03) (3) (Canadian$/US$) 1.00 0.99 0.01 1
Summary of Rail Data (Page 2)
Fourth Quarter Year
2012 2011 Fav/(Unfav) % 2012 2011 Fav/(Unfav) %
Commodity Data
Freight
Revenues
(millions)
$ 355 $ 323 $ 32 10 - Grain $ 1,172 $ 1,100 $ 72 7
156 158 (2) (1) - Coal 602 556 46 8
- Sulphur
and
133 133 - - fertilizers 520 549 (29) (5)
-
Industrial
and
consumer
335 288 47 16 products 1,268 1,017 251 25
-
99 94 5 5 Automotive 425 338 87 26
- Forest
46 47 (1) (2) products 193 189 4 2
-
340 332 8 2 Intermodal 1,370 1,303 67 5
Total Freight
$ 1,464 $ 1,375 $ 89 6 Revenues $ 5,550 $ 5,052 $ 498 10
Millions of
Revenue
Ton-Miles
(RTM)
9,628 9,111 517 6 - Grain 33,082 32,481 601 2
5,809 5,860 (51) (1) - Coal 22,375 21,041 1,334 6
- Sulphur
and
3,838 4,899 (1,061) (22) fertilizers 17,058 20,468 (3,410) (17)
-
Industrial
and
consumer
8,347 6,478 1,869 29 products 30,469 24,122 6,347 26
-
561 535 26 5 Automotive 2,482 2,080 402 19
- Forest
1,129 1,176 (47) (4) products 4,713 4,960 (247) (5)
-
6,217 6,025 192 3 Intermodal 24,853 23,907 946 4
35,529 34,084 1,445 4 Total RTMs 135,032 129,059 5,973 5
Freight
Revenue per
RTM (cents)
3.69 3.55 0.14 4 - Grain 3.54 3.39 0.15 4
2.69 2.70 (0.01) - - Coal 2.69 2.64 0.05 2
- Sulphur
and
3.47 2.71 0.76 28 fertilizers 3.05 2.68 0.37 14
-
Industrial
and
consumer
4.01 4.45 (0.44) (10) products 4.16 4.22 (0.06) (1)
-
17.65 17.57 0.08 - Automotive 17.12 16.25 0.87 5
- Forest
4.07 4.00 0.07 2 products 4.10 3.81 0.29 8
-
5.47 5.51 (0.04) (1) Intermodal 5.51 5.45 0.06 1
Total Freight
Revenue per
4.12 4.03 0.09 2 RTM 4.11 3.91 0.20 5
Carloads
(thousands)
122 121 1 1 - Grain 433 450 (17) (4)
88 87 1 1 - Coal 337 313 24 8
- Sulphur
and
43 48 (5) (10) fertilizers 177 199 (22) (11)
-
Industrial
and
consumer
119 114 5 4 products 469 421 48 11
-
39 39 - - Automotive 162 145 17 12
- Forest
16 17 (1) (6) products 67 72 (5) (7)
-
253 250 3 1 Intermodal 1,024 997 27 3
Total
680 676 4 1 Carloads 2,669 2,597 72 3
Freight
Revenue per
Carload
$ 2,910 $ 2,669 $ 241 9 - Grain $ 2,707 $ 2,444 $ 263 11
1,773 1,816 (43) (2) - Coal 1,786 1,776 10 1
- Sulphur
and
3,093 2,771 322 12 fertilizers 2,938 2,759 179 6
-
Industrial
and
consumer
2,815 2,526 289 11 products 2,704 2,416 288 12
-
2,538 2,410 128 5 Automotive 2,623 2,331 292 13
- Forest
2,875 2,765 110 4 products 2,881 2,625 256 10
-
1,344 1,328 16 1 Intermodal 1,338 1,307 31 2
Total Freight
Revenue per
$ 2,153 $ 2,034 $ 119 6 Carload $ 2,079 $ 1,945 $ 134 7
Summary of Rail Data (Page 3)
Fourth Quarter Year
^ 2012 2011 ^(1) ^ Fav/(Unfav) ^ % ^ 2012 2011 ^(1) ^ Fav/(Unfav) ^ %
Operations
Performance
Freight gross
ton-miles
66,204 65,472 732 1 (millions) 254,354 247,955 6,399 3
Train miles
10,046 10,611 (565) (5) (thousands) 40,270 40,145 125 -
Average train
weight -
excluding
local traffic
7,014 6,587 427 6 (tons) 6,709 6,593 116 2
Average train
length -
excluding
local traffic
6,132 5,654 478 8 (feet) 5,838 5,665 173 3
Average train
speed - AAR
definition
24.0 23.4 0.6 3 (mph) 24.4 21.3 3.1 15
Average
terminal
dwell - AAR
definition
17.3 17.7 0.4 2 (hours) 17.6 19.9 2.3 12
Car miles per
201.7 183.5 18.2 10 car day 202.3 160.1 42.2 26
Locomotive
productivity
(daily average
GTMs/active
197.1 175.1 22.0 13 HP) 179.8 166.7 13.1 8
Employee
productivity
(million
GTMs/expense
4.7 4.5 0.2 4 employee) 17.4 17.5 (0.1) (1)
Fuel
^ 1.14 ^ 1.17 ^ 0.03 ^ 3 efficiency^(2) ^ 1.15 ^ 1.18 ^ 0.03 ^ 3
U.S. gallons
of locomotive
fuel consumed
^ 74.4 ^ 76.0 ^ 1.6 ^ 2 (millions)^(3) ^ 289.2 ^ 290.8 ^ 1.6 ^ 1
Average fuel
price (U.S.
dollars per
3.47 3.45 (0.02) (1) U.S. gallon) 3.45 3.38 (0.07) (2)
OE per GTM
^ 2.18 ^ 1.69 ^ (0.49) ^ (29) (cents)^(4) ^ 1.87 ^ 1.70 ^ (0.17) ^ (10)
OE per GTM -
Adjusted
^ 1.70 ^ 1.72 ^ 0.02 ^ 1 (cents)^(5) ^ 1.72 ^ 1.71 ^ (0.01) ^ (1)
Average number
of active
employees -
^ 16,282 ^ 16,616 ^ 334 ^ 2 Total^(6) ^ 16,657 ^ 16,097 ^ (560) ^ (3)
Average number
of active
employees -
^ 14,108 ^ 14,459 ^ 351 ^ 2 Expense^(6) ^ 14,594 ^ 14,169 ^ (425) ^ (3)
Number of
employees at
end of period
^ 15,671 ^ 16,428 ^ 757 ^ 5 - Total^(6) ^ 15,671 ^ 16,428 ^ 757 ^ 5
Number of
employees at
end of period
^ 13,945 ^ 14,764 ^ 819 ^ 6 - Expense^(6) ^ 13,945 ^ 14,764 ^ 819 ^ 6
Average daily
active cars
on-line
42.2 46.7 4.5 10 (thousands) 40.9 51.4 10.5 20
Average daily
active road
locomotives
952 1,085 133 12 on-line 1,007 1,085 78 7
Safety
FRA personal
injuries per
200,000
1.89 1.70 (0.19) (11) employee-hours 1.46 1.85 0.39 21
FRA train
accidents per
million
1.68 1.40 (0.28) (20) train-miles 1.67 1.88 0.21 11
^(1) Certain prior period figures have been revised to conform with
current presentation or have been updated to reflect new
information.
^(2) Fuel efficiency is defined as U.S. gallons of locomotive fuel
consumed per 1,000 GTMs - freight and yard.
^(3) Includes gallons of fuel consumed from freight, yard and commuter
service but excludes fuel used in capital projects and other
non-freight activities.
^(4) Gross Ton-Mile (GTM) is the movement of the combined tons (freight
car tare, inactive locomotive tare, and contents) a distance of one
mile.
^(5) OE per GTM - Adjusted is calculated consistently with OE per GTM
except for the exclusion of net gains on land sales, to eliminate
the volatile nature of these sales, fuel price impact, to remove the
volatility of fuel prices and to provide comparative fuel expenses
at the 2011 fuel price, CEO transition, asset impairment and labour
restructuring costs, to eliminate the impact of these significant
items that are not among our normal ongoing operating expenses. Net
gains on land sales were $1 million and $20 million for the three
months ended December 31, 2012 and 2011, respectively, and $23
million and $25 million for the year ended December 31, 2012 and
2011, respectively. The impact in fuel price, net of hedging and
B.C. carbon tax, was unfavourable $2 million for the three months
ended December 31, 2012 and unfavourable $25 million for the year
ended December 31, 2012. CEO transition costs were nil for the three
months ended December 31, 2012 and $42 million for the year ended
December 31, 2012. Asset impairment costs were $265 million for the
three months and year ended December 31, 2012. Labour restructuring
costs were $53 million for the three months and year ended December
31, 2012.
^(6) An employee is defined as an individual who has worked more than 40
hours in a standard biweekly pay period. This excludes part time
employees, contractors, consultants, and trainees.
SOURCE Canadian Pacific
Contact:
Contacts:
Media
Ed Greenberg
Canadian Pacific
Tel.: (612) 849-4717
24/7 Media Pager: 855-242-3674
e-mail: ed_greenberg@cpr.ca
Investment Community
Janet Weiss
Canadian Pacific
Tel.: (403) 319-3233
e-mail: investor@cpr.ca
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