SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of July, 2005
CANADIAN PACIFIC RAILWAY LIMITED
(Commission File No. 1-01342)
CANADIAN PACIFIC RAILWAY COMPANY
(Commission File No. 1-15272)
(translation of each Registrants name into English)
Suite 500, Gulf Canada Square, 401 9th Avenue, S.W., Calgary, Alberta, Canada, T2P 4Z4
(address of principal executive offices)
Indicate by check mark whether the registrants file or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F o Form 40-F x
Indicate by check mark whether the registrants by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes o No x
If Yes is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-
This Report furnished on Form 6-K shall be incorporated by reference into each of the following Registration Statements under the Securities Act of 1933 of the registrant: Form S-8 No. 333-13962 (Canadian Pacific Railway Limited), and Form S-8 No. 333-13846 (Canadian Pacific Railway Limited).
CANADIAN PACIFIC RAILWAY LIMITED CANADIAN PACIFIC RAILWAY COMPANY (Registrants) |
||||
Date: July 26, 2005 | Signed: Robert V. Horte | |||
By: | Name: | Robert V. Horte | ||
Title: | Corporate Secretary | |||
Ø | Operating ratio of 75.5 per cent, an improvement of 2.5 percentage points | ||
Ø | Excluding foreign exchange losses on long-term debt, diluted earnings per share up 34% to $0.87 | ||
Ø | Revenue up 10 per cent to $1,106 million | ||
Ø | Operating expenses up less than 2 per cent, excluding significantly higher fuel costs |
Ø | Net income up $97 million to $204 million and diluted earnings per share up 90 per cent to $1.27 | ||
Ø | Operating ratio improved by 3.4 percentage points to 78.8 per cent | ||
Ø | Excluding foreign exchange losses on long-term debt, income up $83 million to $225 million and diluted earnings per share up 57 per cent to $1.40 | ||
Ø | Revenue up 12 per cent, with double-digit increases in coal, grain and industrial products | ||
Ø | Operating expenses up 7 per cent, with most of the increase due to higher fuel costs |
2
Contacts: |
||
Media
|
Investment Community | |
Len Cocolicchio
|
Paul Bell | |
Tel.: (403) 319-7591
|
Vice-President, Investor Relations | |
len_cocolicchio@cpr.ca
|
Tel.: (403) 319-3591 | |
investor@cpr.ca |
3
For the three months | ||||||||
ended June 30 | ||||||||
2005 | 2004 | |||||||
(unaudited) | (unaudited) | |||||||
Revenues |
||||||||
Freight |
$ | 1,056.5 | $ | 959.0 | ||||
Other |
49.4 | 45.7 | ||||||
1,105.9 | 1,004.7 | |||||||
Operating expenses |
||||||||
Compensation and benefits |
322.2 | 318.1 | ||||||
Fuel |
145.2 | 107.9 | ||||||
Materials |
46.0 | 45.5 | ||||||
Equipment rents |
54.7 | 60.9 | ||||||
Depreciation and amortization |
110.7 | 102.7 | ||||||
Purchased services and other |
156.0 | 149.0 | ||||||
834.8 | 784.1 | |||||||
Operating income |
271.1 | 220.6 | ||||||
Other charges (Note 3) |
5.7 | 10.1 | ||||||
Foreign exchange losses on long-term debt |
17.0 | 20.0 | ||||||
Interest expense (Note 4) |
53.2 | 57.1 | ||||||
Income tax expense |
72.0 | 49.7 | ||||||
Net income |
$ | 123.2 | $ | 83.7 | ||||
Basic earnings per share (Note 5) |
$ | 0.78 | $ | 0.53 | ||||
Diluted earnings per share (Note 5) |
$ | 0.77 | $ | 0.53 | ||||
4
For the six months | ||||||||
ended June 30 | ||||||||
2005 | 2004 | |||||||
(unaudited) | (unaudited) | |||||||
Revenues |
||||||||
Freight |
$ | 2,036.4 | $ | 1,812.7 | ||||
Other |
83.6 | 78.6 | ||||||
2,120.0 | 1,891.3 | |||||||
Operating expenses |
||||||||
Compensation and benefits |
653.3 | 627.1 | ||||||
Fuel |
279.7 | 207.6 | ||||||
Materials |
104.8 | 99.3 | ||||||
Equipment rents |
103.2 | 119.5 | ||||||
Depreciation and amortization |
220.2 | 202.3 | ||||||
Purchased services and other |
309.0 | 298.9 | ||||||
1,670.2 | 1,554.7 | |||||||
Operating income |
449.8 | 336.6 | ||||||
Other charges (Note 3) |
4.7 | 14.7 | ||||||
Foreign exchange losses on long-term debt |
20.1 | 33.3 | ||||||
Interest expense (Note 4) |
104.8 | 111.1 | ||||||
Income tax expense |
116.3 | 70.3 | ||||||
Net income |
$ | 203.9 | $ | 107.2 | ||||
Basic earnings per share (Note 5) |
$ | 1.28 | $ | 0.67 | ||||
Diluted earnings per share (Note 5) |
$ | 1.27 | $ | 0.67 | ||||
5
June 30 | December 31 | |||||||
2005 | 2004 | |||||||
(unaudited) | (audited) | |||||||
Assets |
||||||||
Current assets |
||||||||
Cash and short-term investments |
$ | 131.7 | $ | 353.0 | ||||
Accounts receivable |
482.8 | 434.7 | ||||||
Materials and supplies |
163.9 | 134.1 | ||||||
Future income taxes |
66.7 | 70.2 | ||||||
845.1 | 992.0 | |||||||
Investments |
61.5 | 96.0 | ||||||
Net properties |
8,606.3 | 8,393.5 | ||||||
Other assets and deferred charges |
1,018.6 | 1,018.3 | ||||||
Total assets |
$ | 10,531.5 | $ | 10,499.8 | ||||
Liabilities and shareholders equity |
||||||||
Current liabilities |
||||||||
Accounts payable and accrued liabilities |
$ | 990.1 | $ | 975.3 | ||||
Income and other taxes payable |
9.6 | 16.2 | ||||||
Dividends payable |
23.8 | 21.0 | ||||||
Long-term debt maturing within one year |
29.4 | 275.7 | ||||||
1,052.9 | 1,288.2 | |||||||
Deferred liabilities |
753.6 | 767.8 | ||||||
Long-term debt |
3,103.0 | 3,075.3 | ||||||
Future income taxes |
1,491.9 | 1,386.1 | ||||||
Shareholders equity |
||||||||
Share capital (Note 7) |
1,123.6 | 1,120.6 | ||||||
Contributed surplus (Note 7) |
288.9 | 300.4 | ||||||
Foreign currency translation adjustments |
74.1 | 77.0 | ||||||
Retained income |
2,643.5 | 2,484.4 | ||||||
4,130.1 | 3,982.4 | |||||||
Total liabilities and shareholders equity |
$ | 10,531.5 | $ | 10,499.8 | ||||
6
For the three months | ||||||||
ended June 30 | ||||||||
2005 | 2004 | |||||||
(unaudited) | (unaudited) | |||||||
Operating activities |
||||||||
Net income |
$ | 123.2 | $ | 83.7 | ||||
Add (deduct) items not affecting cash: |
||||||||
Depreciation and amortization |
110.7 | 102.7 | ||||||
Future income taxes |
68.8 | 49.6 | ||||||
Foreign exchange losses on long-term debt |
17.0 | 20.0 | ||||||
Amortization of deferred charges |
5.0 | 6.6 | ||||||
Restructuring payments |
(13.3 | ) | (19.5 | ) | ||||
Other operating activities, net |
(0.2 | ) | (0.8 | ) | ||||
Change in non-cash working capital balances
related to operations |
48.1 | 7.1 | ||||||
Cash provided by operating activities |
359.3 | 249.4 | ||||||
Investing activities |
||||||||
Additions to properties |
(209.3 | ) | (188.9 | ) | ||||
Other investments |
0.6 | (0.9 | ) | |||||
Net proceeds from disposal of
transportation properties |
3.8 | 5.8 | ||||||
Cash used in investing activities |
(204.9 | ) | (184.0 | ) | ||||
Financing activities |
||||||||
Dividends paid |
(21.0 | ) | (20.3 | ) | ||||
Issuance of shares (Note 7) |
1.6 | 0.3 | ||||||
Purchase of shares (Note 7) |
(12.6 | ) | | |||||
Net decrease in short-term borrowing |
(8.6 | ) | | |||||
Repayment of long-term debt |
(256.6 | ) | (0.8 | ) | ||||
Cash used in financing activities |
(297.2 | ) | (20.8 | ) | ||||
Cash position |
||||||||
(Decrease) increase in net cash |
(142.8 | ) | 44.6 | |||||
Net cash at beginning of period |
274.5 | 260.8 | ||||||
Net cash at end of period |
$ | 131.7 | $ | 305.4 | ||||
Net cash is defined as: |
||||||||
Cash and short-term investments |
$ | 131.7 | $ | 305.4 | ||||
7
For the six months | ||||||||
ended June 30 | ||||||||
2005 | 2004 | |||||||
(unaudited) | (unaudited) | |||||||
Operating activities |
||||||||
Net income |
$ | 203.9 | $ | 107.2 | ||||
Add (deduct) items not affecting cash: |
||||||||
Depreciation and amortization |
220.2 | 202.3 | ||||||
Future income taxes |
108.9 | 65.6 | ||||||
Foreign exchange losses on long-term debt |
20.1 | 33.3 | ||||||
Amortization of deferred charges |
10.0 | 12.9 | ||||||
Restructuring payments |
(26.3 | ) | (38.0 | ) | ||||
Other operating activities, net |
(21.1 | ) | (23.2 | ) | ||||
Change in non-cash working capital balances
related to operations |
(78.2 | ) | (8.1 | ) | ||||
Cash provided by operating activities |
437.5 | 352.0 | ||||||
Investing activities |
||||||||
Additions to properties |
(352.7 | ) | (329.0 | ) | ||||
Other investments |
1.4 | (2.4 | ) | |||||
Net proceeds from disposal of
transportation properties |
5.5 | 8.6 | ||||||
Cash used in investing activities |
(345.8 | ) | (322.8 | ) | ||||
Financing activities |
||||||||
Dividends paid |
(42.0 | ) | (40.5 | ) | ||||
Issuance of shares (Note 7) |
5.7 | 0.7 | ||||||
Purchase of shares (Note 7) |
(12.6 | ) | | |||||
Issuance of long-term debt |
| 193.7 | ||||||
Repayment of long-term debt |
(264.1 | ) | (12.4 | ) | ||||
Cash (used in) provided by financing activities |
(313.0 | ) | 141.5 | |||||
Cash position |
||||||||
(Decrease) increase in net cash |
(221.3 | ) | 170.7 | |||||
Net cash at beginning of period |
353.0 | 134.7 | ||||||
Net cash at end of period |
$ | 131.7 | $ | 305.4 | ||||
Net cash is defined as: |
||||||||
Cash and short-term investments |
$ | 131.7 | $ | 305.4 | ||||
8
For the six months | ||||||||
ended June 30 | ||||||||
2005 | 2004 | |||||||
(unaudited) | (unaudited) | |||||||
Balance, January 1 |
$ | 2,484.4 | $ | 2,153.9 | ||||
Net income for the period |
203.9 | 107.2 | ||||||
Dividends |
(44.8 | ) | (40.5 | ) | ||||
Balance, June 30 |
$ | 2,643.5 | $ | 2,220.6 | ||||
9
1 | Basis of presentation | |
These unaudited interim consolidated financial statements and notes have been prepared using accounting policies that are consistent with the policies used in preparing Canadian Pacific Railway Limiteds (CPR, the Company or Canadian Pacific Railway) 2004 annual consolidated financial statements. They do not include all disclosures required under Generally Accepted Accounting Principles for annual financial statements and should be read in conjunction with the annual consolidated financial statements. | ||
2 | Change in accounting estimate | |
The Company recorded a $6.8-million adjustment for the quarter and a total adjustment of $23.4 million year to date to increase revenues related to the April 1-to-December 31 period of 2004. This adjustment reflects a change in estimate as a result of a contract settlement with a customer. | ||
3 | Other charges |
For the three months | For the six months | |||||||||||||||
ended June 30 | ended June 30 | |||||||||||||||
(in millions) | 2005 | 2004 | 2005 | 2004 | ||||||||||||
Amortization of discount
on accruals recorded at
present value |
$ | 4.2 | $ | 4.9 | $ | 8.4 | $ | 9.7 | ||||||||
Other exchange gains |
(1.3 | ) | (2.9 | ) | (3.3 | ) | (0.4 | ) | ||||||||
Loss on sale of accounts
receivable |
0.9 | 0.8 | 1.8 | 1.6 | ||||||||||||
(Gains) losses on non-hedging
derivative instruments |
(0.4 | ) | 5.2 | (6.6 | ) | 0.8 | ||||||||||
Other |
2.3 | 2.1 | 4.4 | 3.0 | ||||||||||||
Total other charges |
$ | 5.7 | $ | 10.1 | $ | 4.7 | $ | 14.7 | ||||||||
4 | Interest expense |
For the three months | For the six months | |||||||||||||||
ended June 30 | ended June 30 | |||||||||||||||
(in millions) | 2005 | 2004 | 2005 | 2004 | ||||||||||||
Interest expense |
$ | 55.8 | $ | 58.5 | $ | 110.4 | $ | 113.7 | ||||||||
Interest income |
(2.6 | ) | (1.4 | ) | (5.6 | ) | (2.6 | ) | ||||||||
Total interest expense |
$ | 53.2 | $ | 57.1 | $ | 104.8 | $ | 111.1 | ||||||||
10
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2005
(unaudited)
5 | Earnings per share | |
At June 30, 2005, the number of shares outstanding was 158.6 million. | ||
Basic earnings per share have been calculated using net income for the period divided by the weighted average number of CPR shares outstanding during the period. | ||
Diluted earnings per share have been calculated using the treasury stock method, which gives effect to the dilutive value of outstanding options. | ||
The number of shares used in earnings per share calculations is reconciled as follows: |
For the three months | For the six months | |||||||||||||||
ended June 30 | ended June 30 | |||||||||||||||
(in millions) | 2005 | 2004 | 2005 | 2004 | ||||||||||||
Weighted average shares
outstanding |
158.9 | 158.7 | 158.8 | 158.7 | ||||||||||||
Dilutive effect of stock options |
1.7 | 0.2 | 1.6 | 0.3 | ||||||||||||
Weighted average diluted
shares outstanding |
160.6 | 158.9 | 160.4 | 159.0 | ||||||||||||
(in dollars) |
||||||||||||||||
Basic earnings per share |
$ | 0.78 | $ | 0.53 | $ | 1.28 | $ | 0.67 | ||||||||
Diluted earnings per share |
$ | 0.77 | $ | 0.53 | $ | 1.27 | $ | 0.67 | ||||||||
For the quarter ended June 30, 2005, no options (quarter ended June 30, 2004 5,642,847 options) were excluded from the computation of diluted earnings per share because their effects were not dilutive. For the six months ended June 30, 2005, no options (six months ended June 30, 2004 1,305,600 options) were excluded from the computation of diluted earnings per share because their effects were not dilutive. |
11
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2005
(unaudited)
6 | Restructuring and environmental remediation | |
At June 30, 2005, the provision for restructuring and environmental remediation was $429.9 million (December 31, 2004 $448.7 million). The restructuring provision primarily includes labour liabilities for restructuring plans. Payments are expected to continue in diminishing amounts until 2025. The environmental remediation liability includes the cost of a multi-year soil remediation program for various sites. | ||
Set out below is a reconciliation of CPRs liabilities associated with restructuring and environmental remediation programs: | ||
Three months ended June 30, 2005 |
Opening | Closing | |||||||||||||||||||||||
Balance | Foreign | Balance | ||||||||||||||||||||||
(in millions) | April 1 | Amortization | Exchange | June 30 | ||||||||||||||||||||
2005 | Accrued | Payments | of Discount | Impact | 2005 | |||||||||||||||||||
Labour
liability for
termination plans |
$ | 261.2 | (1.8 | ) | (11.1 | ) | 3.2 | 0.5 | $ | 252.0 | ||||||||||||||
Other non-labour
liabilities for
exit plans |
6.0 | | (0.1 | ) | 0.1 | 0.1 | 6.1 | |||||||||||||||||
Total restructuring
liability |
267.2 | (1.8 | ) | (11.2 | ) | 3.3 | 0.6 | 258.1 | ||||||||||||||||
Environmental
remediation program |
172.4 | | (2.1 | ) | | 1.5 | 171.8 | |||||||||||||||||
Total restructuring
and environmental
remediation
liability |
$ | 439.6 | (1.8 | ) | (13.3 | ) | 3.3 | 2.1 | $ | 429.9 | ||||||||||||||
Three months ended June 30, 2004 |
Opening | Closing | |||||||||||||||||||||||
Balance | Foreign | Balance | ||||||||||||||||||||||
(in millions) | April 1 | Amortization | Exchange | June 30 | ||||||||||||||||||||
2004 | Accrued | Payments | of Discount | Impact | 2004 | |||||||||||||||||||
Labour
liability for
termination plans |
$ | 346.8 | (1.4 | ) | (14.1 | ) | 4.4 | 1.2 | $ | 336.9 | ||||||||||||||
Other non-labour
liabilities for
exit plans |
8.9 | (0.1 | ) | (0.8 | ) | 0.1 | 0.2 | 8.3 | ||||||||||||||||
Total restructuring
liability |
355.7 | (1.5 | ) | (14.9 | ) | 4.5 | 1.4 | 345.2 | ||||||||||||||||
Environmental
remediation program |
93.8 | 0.1 | (4.6 | ) | | 0.5 | 89.8 | |||||||||||||||||
Total restructuring
and environmental
remediation
liability |
$ | 449.5 | (1.4 | ) | (19.5 | ) | 4.5 | 1.9 | $ | 435.0 | ||||||||||||||
12
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2005
(unaudited)
6 | Restructuring and environmental remediation (continued) | |
Six months ended June 30, 2005 |
Opening | Closing | |||||||||||||||||||||||
Balance | Foreign | Balance | ||||||||||||||||||||||
(in millions) | Jan. 1 | Amortization | Exchange | June 30 | ||||||||||||||||||||
2005 | Accrued | Payments | of Discount | Impact | 2005 | |||||||||||||||||||
Labour
liability for
termination plans |
$ | 269.7 | (2.0 | ) | (22.9 | ) | 6.3 | 0.9 | $ | 252.0 | ||||||||||||||
Other non-labour
liabilities for
exit plans |
6.1 | (0.1 | ) | (0.1 | ) | 0.1 | 0.1 | 6.1 | ||||||||||||||||
Total restructuring
liability |
275.8 | (2.1 | ) | (23.0 | ) | 6.4 | 1.0 | 258.1 | ||||||||||||||||
Environmental
remediation program |
172.9 | | (3.3 | ) | | 2.2 | 171.8 | |||||||||||||||||
Total restructuring
and environmental
remediation
liability |
$ | 448.7 | (2.1 | ) | (26.3 | ) | 6.4 | 3.2 | $ | 429.9 | ||||||||||||||
Six months ended June 30, 2004 |
Opening | Closing | |||||||||||||||||||||||
Balance | Foreign | Balance | ||||||||||||||||||||||
(in millions) | Jan. 1 | Amortization | Exchange | June 30 | ||||||||||||||||||||
2004 | Accrued | Payments | of Discount | Impact | 2004 | |||||||||||||||||||
Labour
liability for
termination plans |
$ | 358.2 | (1.4 | ) | (30.8 | ) | 8.8 | 2.1 | $ | 336.9 | ||||||||||||||
Other non-labour
liabilities for
exit plans |
9.2 | (0.1 | ) | (1.1 | ) | 0.1 | 0.2 | 8.3 | ||||||||||||||||
Total restructuring
liability |
367.4 | (1.5 | ) | (31.9 | ) | 8.9 | 2.3 | 345.2 | ||||||||||||||||
Environmental
remediation program |
94.8 | 0.1 | (6.1 | ) | | 1.0 | 89.8 | |||||||||||||||||
Total restructuring
and environmental
remediation
liability |
$ | 462.2 | (1.4 | ) | (38.0 | ) | 8.9 | 3.3 | $ | 435.0 | ||||||||||||||
Amortization of Discount is charged to income as Other Charges and Purchased Services and Other. |
13
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2005
(unaudited)
7 | Shareholders equity | |
An analysis of Common Share balances is as follows: |
For the three months ended June 30 | ||||||||||||||||
(in millions) | 2005 | 2004 | ||||||||||||||
Number | Amount | Number | Amount | |||||||||||||
Balance, April 1 |
158.9 | $ | 1,124.7 | 158.7 | $ | 1,118.5 | ||||||||||
Shares issued under
stock
option plans |
0.1 | 1.6 | | 0.3 | ||||||||||||
Stock compensation
expense related to
shares issued under
stock option plans |
| 0.4 | | | ||||||||||||
Shares repurchased |
(0.4 | ) | (3.1 | ) | | | ||||||||||
Balance, June 30 |
158.6 | $ | 1,123.6 | 158.7 | $ | 1,118.8 | ||||||||||
For the six months ended June 30 | ||||||||||||||||
(in millions) | 2005 | 2004 | ||||||||||||||
Number | Amount | Number | Amount | |||||||||||||
Balance, January 1 |
158.8 | $ | 1,120.6 | 158.7 | $ | 1,118.1 | ||||||||||
Shares issued under
stock option plans |
0.2 | 5.7 | | 0.7 | ||||||||||||
Stock compensation
expense related to
shares issued under
stock option plans |
| 0.4 | | | ||||||||||||
Shares repurchased |
(0.4 | ) | (3.1 | ) | | | ||||||||||
Balance, June 30 |
158.6 | $ | 1,123.6 | 158.7 | $ | 1,118.8 | ||||||||||
14
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2005
(unaudited)
7 | Shareholders equity (continued) | |
An analysis of contributed surplus balances is as follows: |
For the three months | ||||||||
ended June 30 | ||||||||
(in millions) | 2005 | 2004 | ||||||
Balance, April 1 |
$ | 302.7 | $ | 296.0 | ||||
Stock compensation expense |
2.4 | 0.9 | ||||||
Stock compensation expense related to shares
issued under stock option plans |
(0.4 | ) | | |||||
Shares repurchased |
(15.8 | ) | | |||||
Balance, June 30 |
$ | 288.9 | $ | 296.9 | ||||
For the six months | ||||||||
ended June 30 | ||||||||
(in millions) | 2005 | 2004 | ||||||
Balance, January 1 |
$ | 300.4 | $ | 294.6 | ||||
Stock compensation expense |
4.7 | 2.3 | ||||||
Stock compensation expense related to shares
issued under stock option plans |
(0.4 | ) | | |||||
Shares repurchased |
(15.8 | ) | | |||||
Balance, June 30 |
$ | 288.9 | $ | 296.9 | ||||
In May 2005, the Company completed the necessary filings for a normal course issuer bid to purchase, for cancellation, up to 2.5 million of its outstanding Common Shares, representing 1.6% of the approximately 159.0 million Common Shares outstanding just prior to the filing date. Share purchases may be made during the 12-month period beginning June 6, 2005, and ending June 5, 2006. The purchases are made at the market price on the day of purchase, with consideration allocated to share capital, up to the average carrying amount of the shares, and any excess allocated to contributed surplus. When shares are repurchased, it takes three days before the transaction is settled and the shares are cancelled. The cost of shares purchased in a given month and settled in the following month is accrued in the month of purchase. During the second quarter, 432,000 shares were purchased at an average price of $43.58. |
15
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2005
(unaudited)
8 | Stock-based compensation | |
In 2005, under CPRs stock option plans, the Company issued 1,548,400 options to purchase Common Shares at the weighted average price of $42.05 per share, based on the closing price on the day prior to the grant date. In tandem with these options, 508,200 stock appreciation rights were issued at the weighted average exercise price of $42.05. | ||
Pursuant to the employee plan, options may be exercised upon vesting, which is between 24 months and 36 months after the grant date, and will expire after 10 years. Some options vest after 48 months, unless certain performance targets are achieved, in which case vesting is accelerated. These options expire five years after the grant date. | ||
The following is a summary of the Companys fixed stock option plans as of June 30 (including options granted under the Directors Stock Option Plan, which was suspended in 2003): |
2005 | 2004 | |||||||||||||||
Number of | Weighted average | Number of | Weighted average | |||||||||||||
options | exercise price | options | exercise price | |||||||||||||
Outstanding, January 1 |
7,752,080 | $ | 29.32 | 6,226,674 | $ | 28.20 | ||||||||||
New options granted |
1,548,400 | 42.05 | 1,741,400 | 32.50 | ||||||||||||
Exercised |
(212,943 | ) | 26.62 | (56,255 | ) | 13.40 | ||||||||||
Forfeited/cancelled |
(92,751 | ) | 27.74 | (55,818 | ) | 20.48 | ||||||||||
Outstanding, June 30 |
8,994,786 | $ | 31.59 | 7,856,001 | $ | 29.32 | ||||||||||
Options exercisable
at June 30 |
2,126,256 | $ | 27.31 | 1,285,419 | $ | 24.14 | ||||||||||
Compensation expense is recognized over the vesting period for stock options issued since January 1, 2003, based on their estimated fair values on the date of grants, as determined by the Black-Scholes option pricing model. Had CPR used the fair value method for options granted between January 1, 2002, and December 31, 2002, CPRs pro forma basis net income and earnings per share would have been as follows: |
For the three months | For the six months | |||||||||||||||||
ended June 30 | ended June 30 | |||||||||||||||||
2005 | 2004 | 2005 | 2004 | |||||||||||||||
Net income (in millions) |
As reported | $ | 123.2 | $ | 83.7 | $ | 203.9 | $ | 107.2 | |||||||||
Pro forma | $ | 123.0 | $ | 83.4 | $ | 203.6 | $ | 106.3 | ||||||||||
(in dollars) |
||||||||||||||||||
Basic earnings per share |
As reported | $ | 0.78 | $ | 0.53 | $ | 1.28 | $ | 0.67 | |||||||||
Pro forma | $ | 0.77 | $ | 0.53 | $ | 1.28 | $ | 0.67 | ||||||||||
Diluted earnings per share |
As reported | $ | 0.77 | $ | 0.53 | $ | 1.27 | $ | 0.67 | |||||||||
Pro forma | $ | 0.77 | $ | 0.52 | $ | 1.27 | $ | 0.67 | ||||||||||
16
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2005
(unaudited)
8 | Stock-based compensation (continued) | |
Under the fair value method, the fair value of options at the grant date is $10.0 million for options issued in the first six months of 2005 (first six months of 2004 $9.5 million). The weighted average fair value assumptions were approximately: |
For the six months | ||||||||
ended June 30 | ||||||||
2005 | 2004 | |||||||
Expected option life (years) |
4.50 | 4.50 | ||||||
Risk-free interest rate |
3.49 | % | 3.36 | % | ||||
Expected stock price volatility |
24 | % | 28 | % | ||||
Expected annual dividends per share |
$ | 0.53 | $ | 0.50 | ||||
Weighted average fair value of options
granted during the year |
$ | 9.65 | $ | 8.04 | ||||
9 | Pensions and other benefits | |
The total benefit cost for the Companys defined benefit pension plans, defined contribution pension plans and post-retirement benefits for the quarter ended June 30, 2005, was $21.0 million (quarter ended June 30, 2004 $19.8 million) and for the six months ended June 30, 2005, was $41.4 million (six months ended June 30, 2004 $39.1 million). | ||
10 | Significant customers | |
During the first six months of 2005, one customer comprised 14.7% of total revenue (first six months of 2004 11.4%). At June 30, 2005, one customer represented 9.2% of total accounts receivable (June 30, 2004 5.1%). |
17
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2005
(unaudited)
11 | Commitments and contingencies | |
In the normal course of its operations, the Company becomes involved in various legal actions, including claims relating to injuries and damages to property. The Company maintains provisions it considers to be adequate for such actions. While the final outcome with respect to actions outstanding or pending at June 30, 2005, cannot be predicted with certainty, it is the opinion of management that their resolution will not have a material adverse effect on the Companys financial position or results of operations. | ||
During the fourth quarter of 2004, CPR recorded a charge for environmental remediation for a specific property. The estimated cost of remediation may change as new information becomes available or new developments occur. However, no significant changes to the charge had occurred as of June 30, 2005. | ||
Capital commitments At June 30, 2005, CPR had multi-year capital commitments of $606.5 million, mainly for locomotive overhaul agreements, in the form of signed contracts. Payments for these commitments are due in 2005 through 2016. |
||
Operating lease commitments At June 30, 2005, minimum payments under operating leases were estimated at $599.1 million in aggregate, with annual payments in each of the next five years of: remainder of 2005 $76.6 million; 2006 $132.0 million; 2007 $92.8 million; 2008 $65.8 million; 2009 $41.6 million. |
||
Guarantees The Company had residual value guarantees on operating lease commitments of $235.3 million at June 30, 2005. The maximum amount that could be payable under these and all of the Companys other guarantees cannot be reasonably estimated due to the nature of certain of the guarantees. All or a portion of amounts paid under certain guarantees could be recoverable from other parties or through insurance. The Company has accrued for all guarantees that it expects to pay. At June 30, 2005, these accruals, which do not include any amounts for residual value guarantees, amounted to $7.5 million. |
18
Second Quarter | Year-to-date | |||||||||||||||||||||||||||||||
2005 | 2004 | Variance | % | 2005 | 2004 | Variance | % | |||||||||||||||||||||||||
Financial (millions, except per share data) |
||||||||||||||||||||||||||||||||
Revenues |
||||||||||||||||||||||||||||||||
$ | 1,056.5 | $ | 959.0 | $ | 97.5 | 10.2 | Freight revenue
|
$ | 2,036.4 | $ | 1,812.7 | $ | 223.7 | 12.3 | ||||||||||||||||||
Other revenue |
||||||||||||||||||||||||||||||||
13.7 | 14.5 | (0.8 | ) | (5.5 | ) | Other intermodal revenues
|
26.4 | 26.2 | 0.2 | 0.8 | ||||||||||||||||||||||
35.7 | 31.2 | 4.5 | 14.4 | Non-freight and switching revenues
|
57.2 | 52.4 | 4.8 | 9.2 | ||||||||||||||||||||||||
49.4 | 45.7 | 3.7 | 8.1 | Total other revenue
|
83.6 | 78.6 | 5.0 | 6.4 | ||||||||||||||||||||||||
1,105.9 | 1,004.7 | 101.2 | 10.1 | 2,120.0 | 1,891.3 | 228.7 | 12.1 | |||||||||||||||||||||||||
Expenses |
||||||||||||||||||||||||||||||||
322.2 | 318.1 | 4.1 | 1.3 | Compensation and benefits
|
653.3 | 627.1 | 26.2 | 4.2 | ||||||||||||||||||||||||
145.2 | 107.9 | 37.3 | 34.6 | Fuel
|
279.7 | 207.6 | 72.1 | 34.7 | ||||||||||||||||||||||||
46.0 | 45.5 | 0.5 | 1.1 | Materials
|
104.8 | 99.3 | 5.5 | 5.5 | ||||||||||||||||||||||||
54.7 | 60.9 | (6.2 | ) | (10.2 | ) | Equipment rents
|
103.2 | 119.5 | (16.3 | ) | (13.6 | ) | ||||||||||||||||||||
110.7 | 102.7 | 8.0 | 7.8 | Depreciation and amortization
|
220.2 | 202.3 | 17.9 | 8.8 | ||||||||||||||||||||||||
156.0 | 149.0 | 7.0 | 4.7 | Purchased services and other
|
309.0 | 298.9 | 10.1 | 3.4 | ||||||||||||||||||||||||
834.8 | 784.1 | 50.7 | 6.5 | 1,670.2 | 1,554.7 | 115.5 | 7.4 | |||||||||||||||||||||||||
271.1 | 220.6 | 50.5 | 22.9 | Operating income (1)
|
449.8 | 336.6 | 113.2 | 33.6 | ||||||||||||||||||||||||
5.7 | 10.1 | (4.4 | ) | (43.6 | ) | Other charges
|
4.7 | 14.7 | (10.0 | ) | (68.0 | ) | ||||||||||||||||||||
53.2 | 57.1 | (3.9 | ) | (6.8 | ) | Interest expense
|
104.8 | 111.1 | (6.3 | ) | (5.7 | ) | ||||||||||||||||||||
72.2 | 49.9 | 22.3 | 44.7 | Income tax expense before foreign exchange losses on long-tem debt (1)
|
115.7 | 69.5 | 46.2 | 66.5 | ||||||||||||||||||||||||
140.0 | 103.5 | 36.5 | 35.3 | Income before foreign exchange losses on long-term debt (1) |
224.6 | 141.3 | 83.3 | 59.0 | ||||||||||||||||||||||||
Foreign exchange losses on long-term debt (FX on LTD) |
||||||||||||||||||||||||||||||||
(17.0 | ) | (20.0 | ) | 3.0 | | FX on LTD
|
(20.1 | ) | (33.3 | ) | 13.2 | | ||||||||||||||||||||
0.2 | 0.2 | | | Income tax on FX on LTD
|
(0.6 | ) | (0.8 | ) | 0.2 | | ||||||||||||||||||||||
(16.8 | ) | (19.8 | ) | 3.0 | | FX on LTD (net of tax)
|
(20.7 | ) | (34.1 | ) | 13.4 | | ||||||||||||||||||||
$ | 123.2 | $ | 83.7 | $ | 39.5 | 47.2 | Net income
|
$ | 203.9 | $ | 107.2 | $ | 96.7 | 90.2 | ||||||||||||||||||
Earnings per share (EPS) |
||||||||||||||||||||||||||||||||
$ | 0.78 | $ | 0.53 | $ | 0.25 | 47.2 | Basic earnings per share
|
$ | 1.28 | $ | 0.67 | $ | 0.61 | 91.0 | ||||||||||||||||||
$ | 0.77 | $ | 0.53 | $ | 0.24 | 45.3 | Diluted earnings per share
|
$ | 1.27 | $ | 0.67 | $ | 0.60 | 89.6 | ||||||||||||||||||
EPS before FX on LTD (1) |
||||||||||||||||||||||||||||||||
$ | 0.88 | $ | 0.65 | $ | 0.23 | 35.4 | Basic earnings per share
|
$ | 1.41 | $ | 0.89 | $ | 0.52 | 58.4 | ||||||||||||||||||
$ | 0.87 | $ | 0.65 | $ | 0.22 | 33.8 | Diluted earnings per share
|
$ | 1.40 | $ | 0.89 | $ | 0.51 | 57.3 | ||||||||||||||||||
158.9 | 158.7 | 0.2 | 0.1 | Weighted average number of shares outstanding (millions)
|
158.8 | 158.7 | 0.1 | 0.1 | ||||||||||||||||||||||||
75.5 | 78.0 | (2.5 | ) | | Operating ratio (1) (2) (%)
|
78.8 | 82.2 | (3.4 | ) | | ||||||||||||||||||||||
8.3 | 7.4 | 0.9 | | ROCE before FX on LTD (after tax) (1) (2) (%)
|
8.3 | 7.4 | 0.9 | | ||||||||||||||||||||||||
42.1 | 47.0 | (4.9 | ) | | Net debt to net debt plus equity (%)
|
42.1 | 47.0 | (4.9 | ) | | ||||||||||||||||||||||
$ | 265.4 | $ | 210.5 | $ | 54.9 | 26.1 | EBIT before FX on LTD (1) (2) (millions)
|
$ | 445.1 | $ | 321.9 | $ | 123.2 | 38.3 | ||||||||||||||||||
$ | 376.1 | $ | 313.2 | $ | 62.9 | 20.1 | EBITDA before FX on LTD (1) (2) (millions)
|
$ | 665.3 | $ | 524.2 | $ | 141.1 | 26.9 |
(1) | These are earnings measures that are not in accordance with GAAP and may not be comparable to similar measures of other companies. | ||
See note on non-GAAP earnings measures attached to commentary. | |||
(2) | EBIT: | Earnings before interest and taxes. | |
EBITDA: | Earnings before interest, taxes, and depreciation and amortization. | ||
ROCE (after tax): | Return on capital employed (after tax) = earnings before interest (last 12 months) divided by average net debt plus equity. | ||
Operating ratio: | Operating expenses divided by revenues. |
19
Second Quarter | Year-to-date | |||||||||||||||||||||||||||||||
2005 | 2004 | Variance | % | 2005 | 2004 | Variance | % | |||||||||||||||||||||||||
Commodity Data |
||||||||||||||||||||||||||||||||
Freight Revenues (millions) |
||||||||||||||||||||||||||||||||
$ | 173.5 | $ | 162.1 | $ | 11.4 | 7.0 | Grain
|
$ | 339.1 | $ | 297.1 | $ | 42.0 | 14.1 | ||||||||||||||||||
198.7 | 134.2 | 64.5 | 48.1 | Coal
|
364.3 | 249.5 | 114.8 | 46.0 | ||||||||||||||||||||||||
116.9 | 130.6 | (13.7 | ) | (10.5 | ) | Sulphur and fertilizers
|
236.2 | 241.8 | (5.6 | ) | (2.3 | ) | ||||||||||||||||||||
86.1 | 83.0 | 3.1 | 3.7 | Forest products
|
167.2 | 156.4 | 10.8 | 6.9 | ||||||||||||||||||||||||
114.3 | 107.3 | 7.0 | 6.5 | Industrial products
|
232.9 | 208.9 | 24.0 | 11.5 | ||||||||||||||||||||||||
81.7 | 82.8 | (1.1 | ) | (1.3 | ) | Automotive
|
151.6 | 154.1 | (2.5 | ) | (1.6 | ) | ||||||||||||||||||||
285.3 | 259.0 | 26.3 | 10.2 | Intermodal (including food and consumer)
|
545.1 | 504.9 | 40.2 | 8.0 | ||||||||||||||||||||||||
$ | 1,056.5 | $ | 959.0 | $ | 97.5 | 10.2 | Total Freight Revenues
|
$ | 2,036.4 | $ | 1,812.7 | $ | 223.7 | 12.3 | ||||||||||||||||||
Intermodal (including food and consumer) |
||||||||||||||||||||||||||||||||
272.4 | 246.6 | 25.8 | 10.5 | Intermodal
|
519.9 | 479.5 | 40.4 | 8.4 | ||||||||||||||||||||||||
12.9 | 12.4 | 0.5 | 4.0 | Food and consumer
|
25.2 | 25.4 | (0.2 | ) | (0.8 | ) | ||||||||||||||||||||||
Millions of Revenue Ton-Miles (RTM) |
||||||||||||||||||||||||||||||||
6,160 | 5,702 | 458 | 8.0 | Grain
|
12,297 | 11,264 | 1,033 | 9.2 | ||||||||||||||||||||||||
6,210 | 6,613 | (403 | ) | (6.1 | ) | Coal
|
11,938 | 12,345 | (407 | ) | (3.3 | ) | ||||||||||||||||||||
5,382 | 5,854 | (472 | ) | (8.1 | ) | Sulphur and fertilizers
|
10,879 | 10,805 | 74 | 0.7 | ||||||||||||||||||||||
2,665 | 2,723 | (58 | ) | (2.1 | ) | Forest products
|
5,186 | 5,218 | (32 | ) | (0.6 | ) | ||||||||||||||||||||
3,436 | 3,590 | (154 | ) | (4.3 | ) | Industrial products
|
7,016 | 7,057 | (41 | ) | (0.6 | ) | ||||||||||||||||||||
658 | 665 | (7 | ) | (1.1 | ) | Automotive
|
1,228 | 1,217 | 11 | 0.9 | ||||||||||||||||||||||
7,271 | 6,826 | 445 | 6.5 | Intermodal (including food and consumer)
|
13,958 | 13,539 | 419 | 3.1 | ||||||||||||||||||||||||
31,782 | 31,973 | (191 | ) | (0.6 | ) | Total RTMs
|
62,502 | 61,445 | 1,057 | 1.7 | ||||||||||||||||||||||
Intermodal (including food and consumer) |
||||||||||||||||||||||||||||||||
6,888 | 6,530 | 358 | 5.5 | Intermodal
|
13,227 | 12,857 | 370 | 2.9 | ||||||||||||||||||||||||
383 | 296 | 87 | 29.4 | Food and consumer
|
731 | 682 | 49 | 7.2 | ||||||||||||||||||||||||
Freight Revenue per RTM (cents) |
||||||||||||||||||||||||||||||||
2.82 | 2.84 | (0.02 | ) | (0.7 | ) | Grain
|
2.76 | 2.64 | 0.12 | 4.5 | ||||||||||||||||||||||
3.20 | 2.03 | 1.17 | 57.6 | Coal
|
3.05 | 2.02 | 1.03 | 51.0 | ||||||||||||||||||||||||
2.17 | 2.23 | (0.06 | ) | (2.7 | ) | Sulphur and fertilizers
|
2.17 | 2.24 | (0.07 | ) | (3.1 | ) | ||||||||||||||||||||
3.23 | 3.05 | 0.18 | 5.9 | Forest products
|
3.22 | 3.00 | 0.22 | 7.3 | ||||||||||||||||||||||||
3.33 | 2.99 | 0.34 | 11.4 | Industrial products
|
3.32 | 2.96 | 0.36 | 12.2 | ||||||||||||||||||||||||
12.42 | 12.45 | (0.03 | ) | (0.2 | ) | Automotive
|
12.35 | 12.66 | (0.31 | ) | (2.4 | ) | ||||||||||||||||||||
3.92 | 3.79 | 0.13 | 3.4 | Intermodal
|
3.91 | 3.73 | 0.18 | 4.8 | ||||||||||||||||||||||||
3.32 | 3.00 | 0.32 | 10.7 | Freight Revenue per RTM
|
3.26 | 2.95 | 0.31 | 10.5 | ||||||||||||||||||||||||
Carloads (thousands) |
||||||||||||||||||||||||||||||||
79.6 | 78.4 | 1.2 | 1.5 | Grain
|
155.5 | 150.2 | 5.3 | 3.5 | ||||||||||||||||||||||||
91.0 | 101.7 | (10.7 | ) | (10.5 | ) | Coal
|
176.9 | 197.4 | (20.5 | ) | (10.4 | ) | ||||||||||||||||||||
54.0 | 60.1 | (6.1 | ) | (10.1 | ) | Sulphur and fertilizers
|
109.5 | 110.7 | (1.2 | ) | (1.1 | ) | ||||||||||||||||||||
40.4 | 41.0 | (0.6 | ) | (1.5 | ) | Forest products
|
79.7 | 80.5 | (0.8 | ) | (1.0 | ) | ||||||||||||||||||||
71.8 | 71.3 | 0.5 | 0.7 | Industrial products
|
145.0 | 141.8 | 3.2 | 2.3 | ||||||||||||||||||||||||
44.6 | 47.0 | (2.4 | ) | (5.1 | ) | Automotive
|
86.6 | 90.3 | (3.7 | ) | (4.1 | ) | ||||||||||||||||||||
293.1 | 295.4 | (2.3 | ) | (0.8 | ) | Intermodal (including food and consumer)
|
568.8 | 580.7 | (11.9 | ) | (2.0 | ) | ||||||||||||||||||||
674.5 | 694.9 | (20.4 | ) | (2.9 | ) | Total Carloads
|
1,322.0 | 1,351.6 | (29.6 | ) | (2.2 | ) | ||||||||||||||||||||
Intermodal (including food and consumer) |
||||||||||||||||||||||||||||||||
285.0 | 286.9 | (1.9 | ) | (0.7 | ) | Intermodal
|
552.3 | 564.1 | (11.8 | ) | (2.1 | ) | ||||||||||||||||||||
8.1 | 8.5 | (0.4 | ) | (4.7 | ) | Food and consumer
|
16.5 | 16.6 | (0.1 | ) | (0.6 | ) | ||||||||||||||||||||
Freight Revenue per Carload |
||||||||||||||||||||||||||||||||
$ | 2,180 | $ | 2,068 | $ | 112 | 5.4 | Grain
|
$ | 2,181 | $ | 1,978 | $ | 203 | 10.3 | ||||||||||||||||||
2,184 | 1,320 | 864 | 65.5 | Coal
|
2,059 | 1,264 | 795 | 62.9 | ||||||||||||||||||||||||
2,165 | 2,173 | (8 | ) | (0.4 | ) | Sulphur and fertilizers
|
2,157 | 2,184 | (27 | ) | (1.2 | ) | ||||||||||||||||||||
2,131 | 2,024 | 107 | 5.3 | Forest products
|
2,098 | 1,943 | 155 | 8.0 | ||||||||||||||||||||||||
1,592 | 1,505 | 87 | 5.8 | Industrial products
|
1,606 | 1,473 | 133 | 9.0 | ||||||||||||||||||||||||
1,832 | 1,762 | 70 | 4.0 | Automotive
|
1,751 | 1,707 | 44 | 2.6 | ||||||||||||||||||||||||
973 | 877 | 96 | 10.9 | Intermodal
|
958 | 869 | 89 | 10.2 | ||||||||||||||||||||||||
$ | 1,566 | $ | 1,380 | $ | 186 | 13.5 | Freight Revenue per Carload
|
$ | 1,540 | $ | 1,341 | $ | 199 | 14.8 |
20
Second Quarter | Year-to-date | |||||||||||||||||||||||||||||||
2005 | 2004 (1) | Variance | % | 2005 | 2004 (1) | Variance | % | |||||||||||||||||||||||||
Operations and Productivity |
||||||||||||||||||||||||||||||||
62,284 | 60,813 | 1,471 | 2.4 | Freight gross ton-miles (GTM) (millions)
|
120,700 | 116,764 | 3,936 | 3.4 | ||||||||||||||||||||||||
31,782 | 31,973 | (191 | ) | (0.6 | ) | Revenue ton-miles (RTM) (millions)
|
62,502 | 61,445 | 1,057 | 1.7 | ||||||||||||||||||||||
10,963 | 10,418 | 545 | 5.2 | Train-miles (thousands)
|
21,628 | 20,362 | 1,266 | 6.2 | ||||||||||||||||||||||||
1.8 | 2.6 | (0.8 | ) | (30.8 | ) | FRA personal injuries per 200,000 employee-hours
|
2.2 | 2.9 | (0.7 | ) | (24.1 | ) | ||||||||||||||||||||
1.3 | 2.1 | (0.8 | ) | (38.1 | ) | FRA train accidents per million train-miles
|
2.1 | 2.2 | (0.1 | ) | (4.5 | ) | ||||||||||||||||||||
3.32 | 3.00 | 0.32 | 10.7 | Freight revenue per RTM (cents)
|
3.26 | 2.95 | 0.31 | 10.5 | ||||||||||||||||||||||||
2.63 | 2.45 | 0.18 | 7.3 | Total operating expenses per RTM (cents)
|
2.67 | 2.53 | 0.14 | 5.5 | ||||||||||||||||||||||||
1.34 | 1.29 | 0.05 | 3.9 | Total operating expenses per GTM (cents)
|
1.38 | 1.33 | 0.05 | 3.8 | ||||||||||||||||||||||||
76.15 | 75.26 | 0.89 | 1.2 | Total operating expenses per train-mile (dollars)
|
77.22 | 76.35 | 0.87 | 1.1 | ||||||||||||||||||||||||
5,681 | 5,837 | (156 | ) | (2.7 | ) | Average train weights (tons)
|
5,581 | 5,734 | (153 | ) | (2.7 | ) | ||||||||||||||||||||
4,091 | 4,114 | (23 | ) | (0.6 | ) | Average train length (feet)
|
3,954 | 4,085 | (131 | ) | (3.2 | ) | ||||||||||||||||||||
24.1 | 24.3 | (0.2 | ) | (0.8 | ) | Average train speed (mph)
|
24.0 | 23.8 | 0.2 | 0.8 | ||||||||||||||||||||||
16,973 | 16,535 | 438 | 2.6 | Number of active employees at end of period
|
16,973 | 16,535 | 438 | 2.6 | ||||||||||||||||||||||||
16,680 | 16,393 | 287 | 1.8 | Average number of active employees
|
16,074 | 15,830 | 244 | 1.5 | ||||||||||||||||||||||||
13,848 | 13,848 | | | Miles of road operated at end of period (2)
|
13,848 | 13,848 | | | ||||||||||||||||||||||||
3,734 | 3,710 | 24 | 0.6 | GTMs per average active employee (000)
|
7,509 | 7,376 | 133 | 1.8 | ||||||||||||||||||||||||
4,498 | 4,391 | 107 | 2.4 | GTMs per mile of road operated (2) (000)
|
8,716 | 8,432 | 284 | 3.4 | ||||||||||||||||||||||||
666 | 681 | (15 | ) | (2.2 | ) | GTMs per active locomotive per day (000)
|
655 | 666 | (11 | ) | (1.7 | ) | ||||||||||||||||||||
1.16 | 1.18 | (0.02 | ) | (1.7 | ) | U.S. gallons of fuel per 1,000 GTMs
|
1.21 | 1.23 | (0.02 | ) | (1.6 | ) | ||||||||||||||||||||
1.49 | 1.01 | 0.48 | 47.5 | Average fuel price excluding provincial fuel taxes (U.S. dollar per U.S. gallon) |
1.43 | 1.00 | 0.43 | 43.0 | ||||||||||||||||||||||||
72.2 | 71.8 | 0.4 | 0.6 | Diesel fuel consumed freight & yard (million U.S. gallons)
|
145.6 | 143.8 | 1.8 | 1.3 | ||||||||||||||||||||||||
52.57 | 37.87 | 14.70 | 38.8 | WTI (US$/bbl average lagged 1 month, unhedged)
|
49.31 | 35.75 | 13.56 | 37.9 | ||||||||||||||||||||||||
1.241 | 1.349 | (0.108 | ) | | Average foreign exchange rate (Canadian$/US$)
|
1.234 | 1.334 | (0.100 | ) | | ||||||||||||||||||||||
0.806 | 0.741 | 0.065 | | Average foreign exchange rate (US$/Canadian$)
|
0.810 | 0.750 | 0.060 | |
(1) | Certain prior period figures have been revised to conform with current presentation or have been updated to reflect new information. | |
(2) | Excludes track on which CPR has haulage rights. |
21