Canadian Pacific records lower profits

Canadian Pacific said it had third quarter profit of C$172.7 million ($134 million), down from C$218.6 million in the same 2007 period.

Revenues were up to C$1.26 billion ($980 million) compared to C$1.15 billion in the same 2007 period.

Our pricing gains and focused cost containment helped offset declines in bulk volumes, said Fred Green, president and chief executive officer. Fuel expenses were a serious headwind, but we saw strong recovery in our operations with progressive improvement as we moved through the quarter. Freight revenues rose 8 percent in the third quarter. Industrial and consumer products revenues were up 24 percent, with automotive and intermodal revenues increasing 16 percent and 11 percent, respectively. Sulphur and fertilizer revenue improved 8 percent with coal improving 5 percent over 2007. These gains were offset by a decrease in grain revenue of four percent due mainly to a late harvest.