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, 2006
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. 333-127943 (Canadian Pacific Railway Limited) and Form S-8 No. 333-13962 (Canadian Pacific Railway Limited).
SIGNATURES |
CANADIAN PACIFIC RAILWAY LIMITED | ||||||||
CANADIAN PACIFIC RAILWAY COMPANY | ||||||||
(Registrants) | ||||||||
Date: July 25, 2006
|
Signed: | Donald F. Barnhardt | ||||||
By: | Name: | Donald F. Barnhardt | ||||||
Title: | Corporate Secretary |
NEWS |
Ø | Income before foreign exchange gains and losses on long-term debt and other specified items improved 14 per cent to $160 million | ||
Ø | Diluted earnings per share before foreign exchange gains and losses on long-term debt and other specified items improved 15 per cent to $1.00 | ||
Ø | Operating ratio improved 40 basis points to 75.1 per cent, a Q2 best for CPR | ||
Ø | Operating expenses, excluding the impact of higher fuel prices, were down more than 2 per cent. |
Ø | Net income was $489 million, an increase of $285 million over 2005 | ||
Ø | Income before foreign exchange gains and losses on long-term debt and other specified items was up 24 per cent to $278 million | ||
Ø | Diluted earnings per share, excluding foreign exchange gains and losses on long-term debt and other specified items, increased 24 per cent to $1.74 | ||
Ø | Operating ratio improved 160 basis points to 77.2 per cent | ||
Ø | Revenues were up 6 per cent which included double-digit increases in grain, industrial and consumer products, automotive, and intermodal business lines |
1
Ø | Operating expenses, excluding the impact of higher fuel prices, decreased slightly in 2006 over 2005. |
2
Contacts: |
||
Media
|
Investment Community | |
Leslie Pidcock
|
Paul Bell, Vice-President Investor Relations | |
Tel.: (403) 319-6878
|
Tel.: (403) 319-3591 | |
e-mail: leslie_pidcock@cpr.ca
|
e-mail: investor@cpr.ca |
3
For the three months | ||||||||
ended June 30 | ||||||||
2006 | 2005 | |||||||
(unaudited) | ||||||||
Revenues |
||||||||
Freight |
$ | 1,086.4 | $ | 1,070.2 | ||||
Other |
44.6 | 35.7 | ||||||
1,131.0 | 1,105.9 | |||||||
Operating expenses |
||||||||
Compensation and benefits |
321.5 | 322.2 | ||||||
Fuel |
160.1 | 145.2 | ||||||
Materials |
54.5 | 46.0 | ||||||
Equipment rents |
44.4 | 54.7 | ||||||
Depreciation and amortization |
117.8 | 110.7 | ||||||
Purchased services and other |
150.8 | 156.0 | ||||||
849.1 | 834.8 | |||||||
Operating income |
281.9 | 271.1 | ||||||
Other charges (Note 3) |
7.7 | 5.7 | ||||||
Foreign exchange (gains) losses on long-term debt |
(52.7 | ) | 17.0 | |||||
Interest expense (Note 4) |
48.6 | 53.2 | ||||||
Income tax (benefit) expense (Note 12) |
(99.2 | ) | 72.0 | |||||
Net income |
$ | 377.5 | $ | 123.2 | ||||
Basic earnings per share (Note 5) |
$ | 2.38 | $ | 0.78 | ||||
Diluted earnings per share (Note 5) |
$ | 2.36 | $ | 0.77 | ||||
4
For the six months | ||||||||
ended June 30 | ||||||||
2006 | 2005 | |||||||
(unaudited) | ||||||||
Revenues |
||||||||
Freight |
$ | 2,153.6 | $ | 2,062.8 | ||||
Other |
87.9 | 57.2 | ||||||
2,241.5 | 2,120.0 | |||||||
Operating expenses |
||||||||
Compensation and benefits |
671.4 | 653.3 | ||||||
Fuel |
318.0 | 279.7 | ||||||
Materials |
112.1 | 104.8 | ||||||
Equipment rents |
89.0 | 103.2 | ||||||
Depreciation and amortization |
232.6 | 220.2 | ||||||
Purchased services and other |
307.4 | 309.0 | ||||||
1,730.5 | 1,670.2 | |||||||
Operating income |
511.0 | 449.8 | ||||||
Other charges (Note 3) |
14.5 | 4.7 | ||||||
Foreign exchange (gains) losses on long-term debt |
(46.3 | ) | 20.1 | |||||
Interest expense (Note 4) |
95.9 | 104.8 | ||||||
Income tax (benefit) expense (Note 12) |
(41.6 | ) | 116.3 | |||||
Net income |
$ | 488.5 | $ | 203.9 | ||||
Basic earnings per share (Note 5) |
$ | 3.08 | $ | 1.28 | ||||
Diluted earnings per share (Note 5) |
$ | 3.04 | $ | 1.27 | ||||
5
June 30 | December 31 | |||||||
2006 | 2005 | |||||||
(unaudited) | ||||||||
Assets |
||||||||
Current assets |
||||||||
Cash and short-term investments |
$ | 44.3 | $ | 121.8 | ||||
Accounts receivable and other current assets |
516.8 | 524.0 | ||||||
Materials and supplies |
182.0 | 140.1 | ||||||
Future income taxes |
105.2 | 108.0 | ||||||
848.3 | 893.9 | |||||||
Investments |
68.7 | 67.3 | ||||||
Net properties |
8,839.4 | 8,790.9 | ||||||
Other assets and deferred charges |
1,190.3 | 1,139.0 | ||||||
Total assets |
$ | 10,946.7 | $ | 10,891.1 | ||||
Liabilities and shareholders equity |
||||||||
Current liabilities |
||||||||
Accounts payable and accrued liabilities |
$ | 936.5 | $ | 1,032.8 | ||||
Income and other taxes payable |
42.0 | 30.2 | ||||||
Dividends payable |
29.6 | 23.7 | ||||||
Long-term debt maturing within one year |
165.6 | 30.0 | ||||||
1,173.7 | 1,116.7 | |||||||
Deferred liabilities |
724.0 | 743.5 | ||||||
Long-term debt |
2,732.5 | 2,970.8 | ||||||
Future income taxes |
1,603.5 | 1,674.4 | ||||||
Shareholders equity |
||||||||
Share capital (Note 7) |
1,174.0 | 1,141.5 | ||||||
Contributed surplus (Note 7) |
110.5 | 241.6 | ||||||
Foreign currency translation adjustments |
64.4 | 67.5 | ||||||
Retained income |
3,364.1 | 2,935.1 | ||||||
4,713.0 | 4,385.7 | |||||||
Total liabilities and shareholders equity |
$ | 10,946.7 | $ | 10,891.1 | ||||
6
For the three months | ||||||||
ended June 30 | ||||||||
2006 | 2005 | |||||||
(unaudited) | ||||||||
Operating activities |
||||||||
Net income |
$ | 377.5 | $ | 123.2 | ||||
Add (deduct) items not affecting cash: |
||||||||
Depreciation and amortization |
117.8 | 110.7 | ||||||
Future income taxes |
(114.7 | ) | 68.8 | |||||
Foreign exchange (gains) losses on long-term debt |
(52.7 | ) | 17.0 | |||||
Amortization of deferred charges |
4.3 | 5.0 | ||||||
Restructuring payments |
(22.8 | ) | (13.3 | ) | ||||
Other operating activities, net |
(1.0 | ) | (10.2 | ) | ||||
Change in non-cash working capital balances related
to operations |
(26.0 | ) | 48.1 | |||||
Cash provided by operating activities |
282.4 | 349.3 | ||||||
Investing activities |
||||||||
Additions to properties |
(177.3 | ) | (209.3 | ) | ||||
(Additions) reductions to investments
and other assets (Note 13) |
(65.3 | ) | 10.6 | |||||
Net proceeds from disposal of
transportation properties |
77.6 | 3.8 | ||||||
Cash used in investing activities |
(165.0 | ) | (194.9 | ) | ||||
Financing activities |
||||||||
Dividends paid |
(29.8 | ) | (21.0 | ) | ||||
Issuance of CPR Common Shares |
10.7 | 1.6 | ||||||
Purchase of CPR Common Shares |
(98.0 | ) | (12.6 | ) | ||||
Net decrease in short-term borrowing |
| (8.6 | ) | |||||
Repayment of long-term debt |
(3.5 | ) | (256.6 | ) | ||||
Cash used in financing activities |
(120.6 | ) | (297.2 | ) | ||||
Cash position |
||||||||
Decrease in net cash |
(3.2 | ) | (142.8 | ) | ||||
Net cash at beginning of period |
47.5 | 274.5 | ||||||
Net cash at end of period |
$ | 44.3 | $ | 131.7 | ||||
Net cash is defined as: |
||||||||
Cash and short-term investments |
$ | 44.3 | $ | 131.7 | ||||
7
For the six months | ||||||||
ended June 30 | ||||||||
2006 | 2005 | |||||||
(unaudited) | ||||||||
Operating activities |
||||||||
Net income |
$ | 488.5 | $ | 203.9 | ||||
Add (deduct) items not affecting cash: |
||||||||
Depreciation and amortization |
232.6 | 220.2 | ||||||
Future income taxes |
(70.4 | ) | 108.9 | |||||
Foreign exchange (gains) losses on long-term debt |
(46.3 | ) | 20.1 | |||||
Amortization of deferred charges |
8.6 | 10.0 | ||||||
Restructuring payments |
(50.6 | ) | (26.3 | ) | ||||
Other operating activities, net |
0.8 | (21.1 | ) | |||||
Change in non-cash working capital balances related
to operations |
(106.5 | ) | (78.2 | ) | ||||
Cash provided by operating activities |
456.7 | 437.5 | ||||||
Investing activities |
||||||||
Additions to properties |
(369.0 | ) | (352.7 | ) | ||||
(Additions) reductions to investments
and other assets (Note 13) |
(85.0 | ) | 1.4 | |||||
Net proceeds from disposal of
transportation properties |
81.9 | 5.5 | ||||||
Cash used in investing activities |
(372.1 | ) | (345.8 | ) | ||||
Financing activities |
||||||||
Dividends paid |
(53.5 | ) | (42.0 | ) | ||||
Issuance of CPR Common Shares |
49.2 | 5.7 | ||||||
Purchase of CPR Common Shares |
(143.6 | ) | (12.6 | ) | ||||
Repayment of long-term debt |
(14.2 | ) | (264.1 | ) | ||||
Cash used in financing activities |
(162.1 | ) | (313.0 | ) | ||||
Cash position |
||||||||
Decrease in net cash |
(77.5 | ) | (221.3 | ) | ||||
Net cash at beginning of period |
121.8 | 353.0 | ||||||
Net cash at end of period |
$ | 44.3 | $ | 131.7 | ||||
Net cash is defined as: |
||||||||
Cash and short-term investments |
$ | 44.3 | $ | 131.7 | ||||
8
For the six months | ||||||||
ended June 30 | ||||||||
2006 | 2005 | |||||||
(unaudited) | ||||||||
Balance, January 1 |
$ | 2,935.1 | $ | 2,484.4 | ||||
Net income for the period |
488.5 | 203.9 | ||||||
Dividends |
(59.5 | ) | (44.8 | ) | ||||
Balance, June 30 |
$ | 3,364.1 | $ | 2,643.5 | ||||
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) 2005 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 | New accounting policy | |
Effective January 1, 2006, the Company adopted the CICA Accounting Standard Section 3831 Non-Monetary Transactions. This standard is applied prospectively to non-monetary transactions occurring on or after that date. The standard requires that assets or liabilities exchanged or transferred in a non-monetary transaction that has commercial substance be valued at fair value with any gain or loss recorded in income. Commercial substance exists when, as a result of the transaction, there is a significant change to future cash flows of the item transferred or the company as a whole. Transactions that lack commercial substance or for which the fair value of the exchanged assets cannot be reliably measured will continue to be accounted for at carrying value. There was no impact to CPR on adoption of this new standard as it is applied prospectively. | ||
3 | Other charges |
For the three months | For the six months | |||||||||||||||
ended June 30 | ended June 30 | |||||||||||||||
(in millions) | 2006 | 2005 | 2006 | 2005 | ||||||||||||
Amortization of discount on
accruals recorded at
present value |
$ | 2.7 | $ | 4.2 | $ | 5.2 | $ | 8.4 | ||||||||
Other exchange losses (gains) |
3.4 | (1.3 | ) | 3.5 | (3.3 | ) | ||||||||||
Loss on sale of accounts
receivable |
1.2 | 0.9 | 2.3 | 1.8 | ||||||||||||
Gains on non-hedging
derivative instruments |
(0.9 | ) | (0.4 | ) | (0.1 | ) | (6.6 | ) | ||||||||
Other |
1.3 | 2.3 | 3.6 | 4.4 | ||||||||||||
Total other charges |
$ | 7.7 | $ | 5.7 | $ | 14.5 | $ | 4.7 | ||||||||
10
4 | Interest expense |
For the three months | For the six months | |||||||||||||||
ended June 30 | ended June 30 | |||||||||||||||
(in millions) | 2006 | 2005 | 2006 | 2005 | ||||||||||||
Interest expense |
$ | 50.1 | $ | 55.8 | $ | 99.1 | $ | 110.4 | ||||||||
Interest income |
(1.5 | ) | (2.6 | ) | (3.2 | ) | (5.6 | ) | ||||||||
Total interest expense |
$ | 48.6 | $ | 53.2 | $ | 95.9 | $ | 104.8 | ||||||||
5 | Earnings per share | |
At June 30, 2006, the number of shares outstanding was 157.2 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) | 2006 | 2005 | 2006 | 2005 | ||||||||||||
Weighted average shares
outstanding |
158.3 | 158.9 | 158.4 | 158.8 | ||||||||||||
Dilutive effect of stock options |
2.0 | 1.7 | 2.0 | 1.6 | ||||||||||||
Weighted average diluted
shares outstanding |
160.3 | 160.6 | 160.4 | 160.4 | ||||||||||||
(in dollars) |
||||||||||||||||
Basic earnings per share |
$2.38 | $0.78 | $3.08 | $1.28 | ||||||||||||
Diluted earnings per share |
$2.36 | $0.77 | $3.04 | $1.27 | ||||||||||||
For the quarter ended June 30, 2006, 308,850 options (quarter ended June 30, 2005 no options) were excluded from the computation of diluted earnings per share because their effects were not dilutive. For the six months ended June 30, 2006, 305,742 options (six months ended June 30, 2005 no options) were excluded from the computation of diluted earnings per share because their effects were not dilutive. Under the normal course issuer bid, 1.8 million shares were repurchased during the second quarter of 2006 (2005 0.4 million shares), and 2.7 million shares were repurchased during the six months ended June 30, 2006 (2005 0.4 million shares). |
11
6 | Restructuring and environmental remediation | |
At June 30, 2006, the provision for restructuring and environmental remediation was $345.8 million (December 31, 2005 $398.8 million). This 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. | ||
Set out below is a reconciliation of CPRs liabilities associated with restructuring and environmental remediation programs: | ||
Three months ended June 30, 2006 |
Opening | Closing | |||||||||||||||||||||||
Balance | Foreign | Balance | ||||||||||||||||||||||
April 1 | Amortization | Exchange | June 30 | |||||||||||||||||||||
(in millions) | 2006 | Accrued | Payments | of Discount | Impact | 2006 | ||||||||||||||||||
Labour
liability for
terminations and
severances |
$ | 240.5 | (8.6 | ) | (16.9 | ) | 2.6 | (1.8 | ) | $ | 215.8 | |||||||||||||
Other non-labour
liabilities for
exit plans |
4.7 | 0.5 | (3.2 | ) | | (0.2 | ) | 1.8 | ||||||||||||||||
Total restructuring
liability |
245.2 | (8.1 | ) | (20.1 | ) | 2.6 | (2.0 | ) | 217.6 | |||||||||||||||
Environmental
remediation program |
128.9 | 5.3 | (2.7 | ) | | (3.3 | ) | 128.2 | ||||||||||||||||
Total restructuring
and environmental
remediation
liability |
$ | 374.1 | (2.8 | ) | (22.8 | ) | 2.6 | (5.3 | ) | $ | 345.8 | |||||||||||||
Opening | Closing | |||||||||||||||||||||||
Balance | Foreign | Balance | ||||||||||||||||||||||
April 1 | Amortization | Exchange | June 30 | |||||||||||||||||||||
(in millions) | 2005 | Accrued | Payments | of Discount | Impact | 2005 | ||||||||||||||||||
Labour
liability for
terminations and
severances |
$ | 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 | ||||||||||||||
12
6 | Restructuring and environmental remediation (continued) | |
Six months ended June 30, 2006 |
Opening | Closing | |||||||||||||||||||||||
Balance | Foreign | Balance | ||||||||||||||||||||||
Jan. 1 | Amortization | Exchange | June 30 | |||||||||||||||||||||
(in millions) | 2006 | Accrued | Payments | of Discount | Impact | 2006 | ||||||||||||||||||
Labour
liability for
terminations and
severances |
$ | 263.6 | (9.7 | ) | (41.7 | ) | 5.2 | (1.6 | ) | $ | 215.8 | |||||||||||||
Other non-labour
liabilities for
exit plans |
5.8 | 0.5 | (4.3 | ) | | (0.2 | ) | 1.8 | ||||||||||||||||
Total restructuring
liability |
269.4 | (9.2 | ) | (46.0 | ) | 5.2 | (1.8 | ) | 217.6 | |||||||||||||||
Environmental
remediation program |
129.4 | 6.4 | (4.6 | ) | | (3.0 | ) | 128.2 | ||||||||||||||||
Total restructuring
and environmental
remediation
liability |
$ | 398.8 | (2.8 | ) | (50.6 | ) | 5.2 | (4.8 | ) | $ | 345.8 | |||||||||||||
Opening | Closing | |||||||||||||||||||||||
Balance | Foreign | Balance | ||||||||||||||||||||||
Jan. 1 | Amortization | Exchange | June 30 | |||||||||||||||||||||
(in millions) | 2005 | Accrued | Payments | of Discount | Impact | 2005 | ||||||||||||||||||
Labour
liability for
terminations and
severances |
$ | 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 | ||||||||||||||
13
7 | Shareholders equity | |
An analysis of Common Share balances is as follows: |
For the three months ended June 30 | ||||||||||||||||
2006 | 2005 | |||||||||||||||
(in millions) | Number | Amount | Number | Amount | ||||||||||||
Share capital, April 1 |
158.6 | $ | 1,175.1 | 158.9 | $ | 1,124.7 | ||||||||||
Shares issued under
stock option
plans |
0.4 | 12.6 | 0.1 | 2.0 | ||||||||||||
Shares repurchased |
(1.8 | ) | (13.7 | ) | (0.4 | ) | (3.1 | ) | ||||||||
Share capital, June 30 |
157.2 | $ | 1,174.0 | 158.6 | $ | 1,123.6 | ||||||||||
For the six months ended June 30 | ||||||||||||||||
2006 | 2005 | |||||||||||||||
(in millions) | Number | Amount | Number | Amount | ||||||||||||
Share capital, January 1 |
158.2 | $ | 1,141.5 | 158.8 | $ | 1,120.6 | ||||||||||
Shares issued under
stock option plans |
1.7 | 52.7 | 0.2 | 6.1 | ||||||||||||
Shares repurchased |
(2.7 | ) | (20.2 | ) | (0.4 | ) | (3.1 | ) | ||||||||
Share
capital, June 30 |
157.2 | $ | 1,174.0 | 158.6 | $ | 1,123.6 | ||||||||||
14
7 | Shareholders equity (continued) | |
An analysis of contributed surplus balances is as follows: |
For the three months | |||||||||
ended June 30 | |||||||||
(in millions) | 2006 | 2005 | |||||||
Contributed surplus, April 1 |
$ | 198.8 | $ | 302.7 | |||||
Stock compensation related to shares issued
under stock option plans |
2.2 | 2.0 | |||||||
Shares repurchased |
(90.5 | ) | (15.8 | ) | |||||
Contributed surplus, June 30 |
$ | 110.5 | $ | 288.9 | |||||
For the six months | ||||||||
ended June 30 | ||||||||
(in millions) | 2006 | 2005 | ||||||
Contributed surplus, January 1 |
$ | 241.6 | $ | 300.4 | ||||
Stock compensation related to shares issued
under stock option plans |
4.4 | 4.3 | ||||||
Shares repurchased |
(135.5 | ) | (15.8 | ) | ||||
Contributed surplus, June 30 |
$ | 110.5 | $ | 288.9 | ||||
In June 2006, the Company completed the acquisition of Common Shares under the previous normal course issuer bid and filed a new normal course issuer bid to purchase, for cancellation, up to 3.9 million of its outstanding Common Shares. Under the new filing, share purchases may be made during the 12-month period that began June 6, 2006, and ends June 5, 2007. 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 of 2006, 1.8 million shares were repurchased at an average price of $56.62 (2005 0.4 million shares were repurchased at an average price of $43.58) and for the six months ended June 30, 2006, 2.7 million shares were repurchased at an average price of $57.01 (2005, 0.4 million shares were repurchased at an average price of $43.58) . |
15
8 | Stock-based compensation | |
In 2006, under CPRs stock option plans, the Company issued 1,423,700 options to purchase Common Shares at the weighted average price of $57.78 per share, based on the closing price on the day prior to the grant date. In tandem with these options, 487,750 stock appreciation rights were issued at the weighted average exercise price of $57.78. Also, all 30,000 unvested Restricted Share Units, issued in 2005, were cancelled. | ||
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: |
2006 | 2005 | |||||||||||||||
Weighted | Weighted | |||||||||||||||
Number of | average | Number of | average | |||||||||||||
options | exercise price | options | exercise price | |||||||||||||
Outstanding, January 1 |
7,971,917 | $ | 32.07 | 7,752,080 | $ | 29.32 | ||||||||||
New options granted |
1,423,700 | 57.78 | 1,548,400 | 42.05 | ||||||||||||
Exercised |
(1,719,412 | ) | 28.61 | (212,943 | ) | 26.62 | ||||||||||
Forfeited/cancelled |
(269,295 | ) | 40.09 | (92,751 | ) | 27.74 | ||||||||||
Outstanding, June 30 |
7,406,910 | $ | 37.52 | 8,994,786 | $ | 31.59 | ||||||||||
Options exercisable
at June 30 |
3,541,610 | $ | 29.43 | 2,126,256 | $ | 27.31 | ||||||||||
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 | |||||||||||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||||||||||
Net income (in millions) |
As reported | $ | 377.5 | $ | 123.2 | $ | 488.5 | $ | 203.9 | |||||||||||
Pro forma | $ | 377.5 | $ | 123.0 | $ | 488.3 | $ | 203.6 | ||||||||||||
(in dollars) |
||||||||||||||||||||
Basic earnings per share |
As reported | $ | 2.38 | $ | 0.78 | $ | 3.08 | $ | 1.28 | |||||||||||
Pro forma | $ | 2.38 | $ | 0.77 | $ | 3.08 | $ | 1.28 | ||||||||||||
Diluted earnings per share |
As reported | $ | 2.36 | $ | 0.77 | $ | 3.04 | $ | 1.27 | |||||||||||
Pro forma | $ | 2.36 | $ | 0.77 | $ | 3.04 | $ | 1.27 | ||||||||||||
16
8 | Stock-based compensation (continued) | |
Under the fair value method, the fair value of options at the grant date was $11.9 million for options issued in the first six months of 2006 (first six months of 2005 $10.0 million). The weighted average fair value assumptions were approximately: |
For the six months | ||||||||
ended June 30 | ||||||||
2006 | 2005 | |||||||
Expected option life (years) |
4.50 | 4.50 | ||||||
Risk-free interest rate |
4.07 | % | 3.49 | % | ||||
Expected stock price volatility |
22 | % | 24 | % | ||||
Expected annual dividends per share |
$ | 0.75 | $ | 0.53 | ||||
Weighted average fair value of options
granted during the year |
$ | 12.98 | $ | 9.65 | ||||
Total Return Swaps | ||
The Company entered into a Total Return Swap (TRS), effective in May 2006, in order to reduce the volatility and total cost to the Company over time of two stock based compensation programs, share appreciation rights (SAR) and deferred share units (DSU). The value of the TRS derivative is linked to the market value of our stock and is intended to mitigate the impact on expenses of share value movements on SARs and DSUs. Compensation and Benefits expense on our Statement of Consolidated Income increased by $8.3 million in the second quarter of 2006 due to unrealized losses for these swaps. These losses substantially offset benefits recognized in the SAR and DSU stock based compensation programs due to fluctuations in share price during the period the TRS was in place. | ||
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, 2006, was $30.3 million (quarter ended June 30, 2005 $21.0 million) and for the six months ended June 30, 2006, was $61.2 million (six months ended June 30, 2005 $41.4 million). | ||
10 | Significant customers | |
During the first six months of 2006, one customer comprised 12.1% of total revenue (first six months of 2005 14.7%). At June 30, 2006, one customer represented 5.8% of total accounts receivable (June 30, 2005 9.2%). |
17
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, 2006, 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. | ||
Capital commitments | ||
At June 30, 2006, CPR had multi-year capital commitments of $622.5 million, mainly for locomotive overhaul agreements, in the form of signed contracts. Payments for these commitments are due in 2006 through 2016. | ||
Operating lease commitments | ||
At June 30, 2006, minimum payments under operating leases were estimated at $532.4 million in aggregate, with annual payments in each of the next five years of: remainder of 2006 $67.2 million; 2007 $108.8 million; 2008 $80.0 million; 2009 $53.9 million; 2010 $39.2 million. | ||
Guarantees | ||
The Company had residual value guarantees on operating lease commitments of $219.3 million at June 30, 2006. 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, 2006, these accruals amounted to $12.7 million. | ||
12 | Income tax (benefit) expense | |
In the second quarter of 2006, federal and provincial legislation was introduced to reduce corporate income tax rates over a period of several years. As a result of these changes, the Company recorded a $176.0 million reduction in future tax liability and income tax expense. | ||
13 | (Additions) reductions to investments and other assets | |
(Additions) reductions to investment and other assets includes the acquisition of $87 million in freight car assets for the six month period ended June 30, 2006 and $66 million for the three month period ended June 30, 2006. These assets were purchased in anticipation of a sale and lease back arrangement with a financial institution. | ||
14 | Reclassification | |
Certain prior period figures have been reclassified to conform with the presentation adopted for the second quarter of 2006. |
18
Second Quarter | Year-to-date | |||||||||||||||||||||||||||||||
2006 | 2005(1) | Variance | % | 2006 | 2005(1) | Variance | % | |||||||||||||||||||||||||
Financial (millions, except per share data) |
||||||||||||||||||||||||||||||||
Revenues |
||||||||||||||||||||||||||||||||
$ | 1,086.4 | $ | 1,070.2 | $ | 16.2 | 1.5 | Freight revenue |
$ | 2,153.6 | $ | 2,062.8 | $ | 90.8 | 4.4 | ||||||||||||||||||
44.6 | 35.7 | 8.9 | 24.9 | Other revenue |
87.9 | 57.2 | 30.7 | 53.7 | ||||||||||||||||||||||||
1,131.0 | 1,105.9 | 25.1 | 2.3 | 2,241.5 | 2,120.0 | 121.5 | 5.7 | |||||||||||||||||||||||||
Operating Expenses |
||||||||||||||||||||||||||||||||
321.5 | 322.2 | (0.7 | ) | (0.2 | ) | Compensation and benefits |
671.4 | 653.3 | 18.1 | 2.8 | ||||||||||||||||||||||
160.1 | 145.2 | 14.9 | 10.3 | Fuel |
318.0 | 279.7 | 38.3 | 13.7 | ||||||||||||||||||||||||
54.5 | 46.0 | 8.5 | 18.5 | Materials |
112.1 | 104.8 | 7.3 | 7.0 | ||||||||||||||||||||||||
44.4 | 54.7 | (10.3 | ) | (18.8 | ) | Equipment rents |
89.0 | 103.2 | (14.2 | ) | (13.8 | ) | ||||||||||||||||||||
117.8 | 110.7 | 7.1 | 6.4 | Depreciation and amortization |
232.6 | 220.2 | 12.4 | 5.6 | ||||||||||||||||||||||||
150.8 | 156.0 | (5.2 | ) | (3.3 | ) | Purchased services and other |
307.4 | 309.0 | (1.6 | ) | (0.5 | ) | ||||||||||||||||||||
849.1 | 834.8 | 14.3 | 1.7 | 1,730.5 | 1,670.2 | 60.3 | 3.6 | |||||||||||||||||||||||||
281.9 | 271.1 | 10.8 | 4.0 | Operating income |
511.0 | 449.8 | 61.2 | 13.6 | ||||||||||||||||||||||||
7.7 | 5.7 | 2.0 | 35.1 | Other charges |
14.5 | 4.7 | 9.8 | 208.5 | ||||||||||||||||||||||||
48.6 | 53.2 | (4.6 | ) | (8.6 | ) | Interest expense |
95.9 | 104.8 | (8.9 | ) | (8.5 | ) | ||||||||||||||||||||
65.5 | 72.2 | (6.7 | ) | (9.3 | ) | Income tax expense before foreign exchange (gains) losses on long-term debt and other specified items (2) |
122.2 | 115.7 | 6.5 | 5.6 | ||||||||||||||||||||||
160.1 | 140.0 | 20.1 | 14.4 | Income before foreign exchange (gains) losses on long-term debt and other specified items (2) |
278.4 | 224.6 | 53.8 | 24.0 | ||||||||||||||||||||||||
Foreign exchange (gains) losses on long-term debt (FX on LTD) |
||||||||||||||||||||||||||||||||
(52.7 | ) | 17.0 | (69.7 | ) | | FX on LTD |
(46.3 | ) | 20.1 | (66.4 | ) | | ||||||||||||||||||||
11.3 | (0.2 | ) | 11.5 | | Income tax
on FX on LTD
(3) |
12.2 | 0.6 | 11.6 | | |||||||||||||||||||||||
(41.4 | ) | 16.8 | (58.2 | ) | | FX on LTD (net of tax) |
(34.1 | ) | 20.7 | (54.8 | ) | | ||||||||||||||||||||
Other specified items |
||||||||||||||||||||||||||||||||
(176.0 | ) | | (176.0 | ) | | Income tax
benefits due to Federal and Provincial income tax rate reductions |
(176.0 | ) | | (176.0 | ) | | ||||||||||||||||||||
$ | 377.5 | $ | 123.2 | $ | 254.3 | 206.4 | Net income |
$ | 488.5 | $ | 203.9 | $ | 284.6 | 139.6 | ||||||||||||||||||
Earnings per share (EPS) |
||||||||||||||||||||||||||||||||
$ | 2.38 | $ | 0.78 | $ | 1.60 | 205.1 | Basic earnings per share |
$ | 3.08 | $ | 1.28 | $ | 1.80 | 140.6 | ||||||||||||||||||
$ | 2.36 | $ | 0.77 | $ | 1.59 | 206.5 | Diluted earnings per share |
$ | 3.04 | $ | 1.27 | $ | 1.77 | 139.4 | ||||||||||||||||||
EPS before FX on LTD and other specified items (2) |
||||||||||||||||||||||||||||||||
$ | 1.01 | $ | 0.88 | $ | 0.13 | 14.8 | Basic earnings per share |
$ | 1.76 | $ | 1.41 | $ | 0.35 | 24.8 | ||||||||||||||||||
$ | 1.00 | $ | 0.87 | $ | 0.13 | 14.9 | Diluted earnings per share |
$ | 1.74 | $ | 1.40 | $ | 0.34 | 24.3 | ||||||||||||||||||
158.3 | 158.9 | (0.6 | ) | (0.4 | ) | Weighted average number of shares outstanding (millions) |
158.4 | 158.8 | (0.4 | ) | (0.3 | ) | ||||||||||||||||||||
75.1 | 75.5 | (0.4 | ) | | Operating ratio (4) (%) |
77.2 | 78.8 | (1.6 | ) | | ||||||||||||||||||||||
9.8 | 8.3 | 1.5 | | ROCE before FX on LTD and other specified items (after tax)(2) (4)(%) |
9.8 | 8.3 | 1.5 | | ||||||||||||||||||||||||
37.7 | 42.1 | (4.4 | ) | | Net debt to net debt plus equity (%) |
37.7 | 42.1 | (4.4 | ) | | ||||||||||||||||||||||
$ | 274.2 | $ | 265.4 | $ | 8.8 | 3.3 | EBIT before FX on LTD and other specified items (2) (4) (millions) |
$ | 496.5 | $ | 445.1 | $ | 51.4 | 11.5 | ||||||||||||||||||
$ | 392.0 | $ | 376.1 | $ | 15.9 | 4.2 | EBITDA before FX on LTD and other specified items (2) (4) (millions) |
$ | 729.1 | $ | 665.3 | $ | 63.8 | 9.6 |
(1) | Certain comparative period figures have been reclassified to current presentation. | |
(2) | 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. | |
(3) | Income tax on FX on LTD is discussed in the current MD&A in the Other Income Statement Items section Income Taxes. | |
(4) | 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 | |||||||||||||||||||||||||||||||
2006 | 2005(1) | Variance | % | 2006 | 2005(1) | Variance | % | |||||||||||||||||||||||||
Commodity Data |
||||||||||||||||||||||||||||||||
Freight Revenues (millions) |
||||||||||||||||||||||||||||||||
$ | 206.4 | $ | 173.5 | $ | 32.9 | 19.0 | - Grain |
$ | 417.7 | $ | 339.1 | $ | 78.6 | 23.2 | ||||||||||||||||||
143.5 | 198.7 | (55.2 | ) | (27.8 | ) | - Coal |
303.7 | 364.3 | (60.6 | ) | (16.6 | ) | ||||||||||||||||||||
105.5 | 116.9 | (11.4 | ) | (9.8 | ) | - Sulphur and fertilizers |
198.6 | 236.2 | (37.6 | ) | (15.9 | ) | ||||||||||||||||||||
75.8 | 86.1 | (10.3 | ) | (12.0 | ) | - Forest products |
159.2 | 167.2 | (8.0 | ) | (4.8 | ) | ||||||||||||||||||||
150.3 | 127.2 | 23.1 | 18.2 | - Industrial and consumer products |
298.6 | 258.1 | 40.5 | 15.7 | ||||||||||||||||||||||||
91.9 | 81.7 | 10.2 | 12.5 | - Automotive |
170.2 | 151.6 | 18.6 | 12.3 | ||||||||||||||||||||||||
313.0 | 286.1 | 26.9 | 9.4 | - Intermodal |
605.6 | 546.3 | 59.3 | 10.9 | ||||||||||||||||||||||||
$ | 1,086.4 | $ | 1,070.2 | $ | 16.2 | 1.5 | Total Freight Revenues |
$ | 2,153.6 | $ | 2,062.8 | $ | 90.8 | 4.4 | ||||||||||||||||||
Millions of Revenue Ton-Miles (RTM) |
||||||||||||||||||||||||||||||||
7,048 | 6,160 | 888 | 14.4 | - Grain |
14,522 | 12,297 | 2,225 | 18.1 | ||||||||||||||||||||||||
4,735 | 6,210 | (1,475 | ) | (23.8 | ) | - Coal |
9,789 | 11,938 | (2,149 | ) | (18.0 | ) | ||||||||||||||||||||
3,858 | 5,382 | (1,524 | ) | (28.3 | ) | - Sulphur and fertilizers |
7,313 | 10,879 | (3,566 | ) | (32.8 | ) | ||||||||||||||||||||
2,264 | 2,665 | (401 | ) | (15.0 | ) | - Forest products |
4,698 | 5,186 | (488 | ) | (9.4 | ) | ||||||||||||||||||||
4,162 | 3,819 | 343 | 9.0 | - Industrial and consumer products |
8,503 | 7,747 | 756 | 9.8 | ||||||||||||||||||||||||
746 | 658 | 88 | 13.4 | - Automotive |
1,349 | 1,228 | 121 | 9.9 | ||||||||||||||||||||||||
7,055 | 6,888 | 167 | 2.4 | - Intermodal |
13,782 | 13,227 | 555 | 4.2 | ||||||||||||||||||||||||
29,868 | 31,782 | (1,914 | ) | (6.0 | ) | Total RTMs |
59,956 | 62,502 | (2,546 | ) | (4.1 | ) | ||||||||||||||||||||
Freight Revenue per RTM (cents) |
||||||||||||||||||||||||||||||||
2.93 | 2.82 | 0.11 | 3.9 | - Grain |
2.88 | 2.76 | 0.12 | 4.3 | ||||||||||||||||||||||||
3.03 | 3.20 | (0.17 | ) | (5.3 | ) | - Coal |
3.10 | 3.05 | 0.05 | 1.6 | ||||||||||||||||||||||
2.73 | 2.17 | 0.56 | 25.8 | - Sulphur and fertilizers |
2.72 | 2.17 | 0.55 | 25.3 | ||||||||||||||||||||||||
3.35 | 3.23 | 0.12 | 3.7 | - Forest products |
3.39 | 3.22 | 0.17 | 5.3 | ||||||||||||||||||||||||
3.61 | 3.33 | 0.28 | 8.4 | - Industrial and consumer products |
3.51 | 3.33 | 0.18 | 5.4 | ||||||||||||||||||||||||
12.32 | 12.42 | (0.10 | ) | (0.8 | ) | - Automotive |
12.62 | 12.35 | 0.27 | 2.2 | ||||||||||||||||||||||
4.44 | 4.15 | 0.29 | 7.0 | - Intermodal |
4.39 | 4.13 | 0.26 | 6.3 | ||||||||||||||||||||||||
3.64 | 3.37 | 0.27 | 8.0 | Freight Revenue per RTM |
3.59 | 3.30 | 0.29 | 8.8 | ||||||||||||||||||||||||
Carloads (thousands) |
||||||||||||||||||||||||||||||||
89.2 | 79.6 | 9.6 | 12.1 | - Grain |
181.6 | 155.5 | 26.1 | 16.8 | ||||||||||||||||||||||||
68.5 | 91.0 | (22.5 | ) | (24.7 | ) | - Coal |
147.2 | 176.9 | (29.7 | ) | (16.8 | ) | ||||||||||||||||||||
41.6 | 54.0 | (12.4 | ) | (23.0 | ) | - Sulphur and fertilizers |
80.6 | 109.5 | (28.9 | ) | (26.4 | ) | ||||||||||||||||||||
33.8 | 40.4 | (6.6 | ) | (16.3 | ) | - Forest products |
71.4 | 79.7 | (8.3 | ) | (10.4 | ) | ||||||||||||||||||||
80.9 | 79.9 | 1.0 | 1.3 | - Industrial and consumer products |
160.6 | 161.5 | (0.9 | ) | (0.6 | ) | ||||||||||||||||||||||
46.8 | 44.6 | 2.2 | 4.9 | - Automotive |
89.1 | 86.6 | 2.5 | 2.9 | ||||||||||||||||||||||||
295.5 | 285.0 | 10.5 | 3.7 | - Intermodal |
577.3 | 552.3 | 25.0 | 4.5 | ||||||||||||||||||||||||
656.3 | 674.5 | (18.2 | ) | (2.7 | ) | Total Carloads |
1,307.8 | 1,322.0 | (14.2 | ) | (1.1 | ) | ||||||||||||||||||||
Freight Revenue per Carload |
||||||||||||||||||||||||||||||||
$ | 2,314 | $ | 2,180 | $ | 134 | 6.1 | - Grain |
$ | 2,300 | $ | 2,181 | $ | 119 | 5.5 | ||||||||||||||||||
2,095 | 2,184 | (89 | ) | (4.1 | ) | - Coal |
2,063 | 2,059 | 4 | 0.2 | ||||||||||||||||||||||
2,536 | 2,165 | 371 | 17.1 | - Sulphur and fertilizers |
2,464 | 2,157 | 307 | 14.2 | ||||||||||||||||||||||||
2,243 | 2,131 | 112 | 5.3 | - Forest products |
2,230 | 2,098 | 132 | 6.3 | ||||||||||||||||||||||||
1,858 | 1,592 | 266 | 16.7 | - Industrial and consumer products |
1,859 | 1,598 | 261 | 16.3 | ||||||||||||||||||||||||
1,964 | 1,832 | 132 | 7.2 | - Automotive |
1,910 | 1,751 | 159 | 9.1 | ||||||||||||||||||||||||
1,059 | 1,004 | 55 | 5.5 | - Intermodal |
1,049 | 989 | 60 | 6.1 | ||||||||||||||||||||||||
$ | 1,655 | $ | 1,587 | $ | 68 | 4.3 | Freight Revenue per Carload |
$ | 1,647 | $ | 1,560 | $ | 87 | 5.6 |
(1) | Certain comparative period figures have been reclassified to current presentation. |
20
Second Quarter | Year-to-date | |||||||||||||||||||||||||||||||
2006 | 2005(1) | Variance | % | 2006 | 2005(1) | Variance | % | |||||||||||||||||||||||||
Operations and Productivity |
||||||||||||||||||||||||||||||||
58,099 | 62,404 | (4,305 | ) | (6.9 | ) | Freight gross ton-miles (GTM) (millions) |
115,113 | 120,820 | (5,707 | ) | (4.7 | ) | ||||||||||||||||||||
29,868 | 31,782 | (1,914 | ) | (6.0 | ) | Revenue ton-miles (RTM) (millions) |
59,956 | 62,502 | (2,546 | ) | (4.1 | ) | ||||||||||||||||||||
16,278 | 16,680 | (402 | ) | (2.4 | ) | Average number of active employees |
15,773 | 16,074 | (301 | ) | (1.9 | ) | ||||||||||||||||||||
16,504 | 16,973 | (469 | ) | (2.8 | ) | Number of employees at end of period |
16,504 | 16,973 | (469 | ) | (2.8 | ) | ||||||||||||||||||||
1.9 | 1.9 | | | FRA personal injuries per 200,000 employee-hours |
2.0 | 2.3 | (0.3 | ) | (13.0 | ) | ||||||||||||||||||||||
1.9 | 1.3 | 0.6 | 46.2 | FRA train accidents per million train-miles |
1.6 | 2.2 | (0.6 | ) | (27.3 | ) | ||||||||||||||||||||||
2.84 | 2.63 | 0.21 | 8.0 | Total operating expenses per RTM (cents) |
2.89 | 2.67 | 0.22 | 8.2 | ||||||||||||||||||||||||
1.46 | 1.34 | 0.12 | 9.0 | Total operating expenses per GTM (cents) |
1.50 | 1.38 | 0.12 | 8.7 | ||||||||||||||||||||||||
0.55 | 0.52 | 0.03 | 5.8 | Compensation and benefits expense per GTM (cents) |
0.58 | 0.54 | 0.04 | 7.4 | ||||||||||||||||||||||||
3,569 | 3,741 | (172 | ) | (4.6 | ) | GTMs per average active employee (000) |
7,298 | 7,516 | (218 | ) | (2.9 | ) | ||||||||||||||||||||
25.0 | 22.0 | 3.0 | 13.6 | Average train speed AAR definition (mph) |
25.1 | 21.9 | 3.2 | 14.6 | ||||||||||||||||||||||||
20.2 | 27.5 | (7.3 | ) | (26.5 | ) | Terminal dwell time AAR definition (hours) |
20.7 | 29.4 | (8.7 | ) | (29.6 | ) | ||||||||||||||||||||
134.0 | 124.3 | 9.7 | 7.8 | Car miles per car day |
133.1 | 119.8 | 13.3 | 11.1 | ||||||||||||||||||||||||
82.4 | 88.2 | (5.8 | ) | (6.6 | ) | Average daily total cars on-line AAR definition (000) |
81.6 | 87.7 | (6.1 | ) | (7.0 | ) | ||||||||||||||||||||
1.19 | 1.16 | 0.03 | 2.6 | U.S. gallons of locomotive fuel per 1,000 GTMs freight & yard |
1.22 | 1.21 | 0.01 | 0.8 | ||||||||||||||||||||||||
69.1 | 72.1 | (3.0 | ) | (4.2 | ) | U.S. gallons of locomotive fuel consumed total (millions) (2) |
140.2 | 145.7 | (5.5 | ) | (3.8 | ) | ||||||||||||||||||||
0.886 | 0.806 | 0.080 | 9.9 | Average foreign exchange rate (US$/Canadian$) |
0.879 | 0.810 | 0.069 | 8.5 | ||||||||||||||||||||||||
1.129 | 1.241 | (0.112 | ) | (9.0 | ) | Average foreign exchange rate (Canadian$/US$) |
1.138 | 1.234 | (0.096 | ) | (7.8 | ) |
(1) | Certain comparative period figures have been reclassified to conform with current presentation or have been updated to reflect new information. | |
(2) | Includes gallons of fuel consumed from freight, yard and commuter service but excludes fuel used in capital projects and other non-freight activities. |