Canadian Pacific Railway Limited (CP) and Canadian National Railway Company (CN) reported fourth quarter and full-year results for the period ended December 31, 2011. While results at CN continued to meet expectations, CP’s results were somewhat disappointing. Operating expenses at both carriers are rising at a faster rate than revenues.
CN posted revenues of $2.377 billion during the fourth quarter, and net income before taxes of $775 million, versus revenues of $2.117 billion and net income before taxes of $699 million during the same period a year earlier. For the year as a whole, CN posted revenues of $9.028 billion (2010: $8.297) and net income before taxes of $3.356 billion (2010: $2.876 billion).
CP posted revenues of $1.408 billion during the fourth quarter, and net income before taxes of $232 million, versus revenues of $1.294 billion and net income before taxes of $238 million during the same period a year earlier. For the year as a whole, CP posted revenues of $5.177 billion (2010: $4.981) and net income before taxes of $697 million (2010: $871 million).
At both carriers, cash flow from operations was significantly lower during the 4th quarter, as compared to year-ago levels, but were little changed when comparing full-year results between 2011 and 2010.
In terms of productivity, CN’s revenue ton miles per average employee rose 0.1147% during 2011, but declined by 1.218% during the fourth quarter. CP’s freight gross ton-miles per average employee declined by 1.937% during 2011, and declined by 1.014% during the fourth quarter. However, during the fourth quarter, CP made significant progress in speeding up its trains, reducing terminal dwell time and, as a result, improving car miles per car day.
During the fourth quarter, CN carried 11% fewer carloads of coal, but managed to generate the same level of revenues. Carloads of metals and minerals rose by 7% during the fourth quarter, and generated revenues that were 30% greater than those generated during the same period in 2010.
At CP, a similar story unfolded. While carloads of coal during the fourth quarter were unchanged from the year before, for the year as a whole, they declined by 8%. However, despite that decline, revenues from the carriage of coal increased by 13%. The strongest growth category at CP was sulphur and fertilizers which witnessed a 12% increase of carloads during the year, and a 16% increase in revenues.