CP Rail says will not offer 2009 earnings
Published: November 13th 2008
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Pacific Railway is not ready to provide earnings or revenue forecasts
for 2009 due to the current economic uncertainty, Chief Executive Fred
Green said on Thursday.
"The huge range of possible economic activity makes earnings guidance
estimates too wide to be meaningful," Green told the company's Investors
Day meeting, at which it has usually released its forecasts for the year
Canadian Pacific, which operates across Canada and in the northern
United States, also said it is not expecting any significant economic
recovery for North America until 2010 and that the downturn will hit its
Green said the only financial guidance that CP, Canada's No 2 railway,
was ready to release was its announcement earlier on Thursday that it
had significantly lowered its forecast for capital expenditures for 2009
due to the economic climate.
Canadian Pacific said capital investment in 2009 is expected to be C$800
million ($650.4 million) to C$820 million. That is down by about C$200
million from 2008 for the combined capital spending of CP and Dakota
Minnesota & Eastern Railroad, the company said.
Canadian Pacific bought DM&E in 2007 and took operational control at the
end of October.
The railway, which usually holds its Investors Day meeting near the end
of the year, will hold its meeting for 2009 in May or June, when it may
be able to give longer-term financial guidance, Green said.
Canadian Pacific has projected earnings per share of between C$4.00 to
C$4.20 for 2008 and revenue growth of between 4 and 6 percent. Both
figures reflect revisions made midway through the year due to the
slowing economy and higher fuel costs. ($1=$1.24 Canadian)
Reuters (Reporting Allan Dowd, Editing by Peter Galloway)