Canadian Pacific Railway Limited Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2016; Provides Earnings Guidance for the Year 2017
For the year, the company reported total revenue of CAD 6,232 million against CAD 6,712 million a year ago. Operating income was CAD 2,578 million against CAD 2,688 million a year ago. Income before income tax expense was CAD 2,152 million against CAD 1,959 million a year ago. Net income was CAD 1,599 million against CAD 1,352 million a year ago. Diluted earnings per share were CAD 10.63 against CAD 8.40 a year ago. Cash provided by operating activities was CAD 2,089 million against CAD 2,459 million a year ago. Additions to properties were CAD 1,182 million against CAD 1,522 million a year ago. Adjusted earnings were CAD 1,549 million compared to CAD 1,625 million a year ago. Adjusted diluted earnings per share were CAD 10.29 compared to CAD 10.10 a year ago. Adjusted operating income was CAD 2,578 million compared to CAD 2,620 million a year ago.
The company provided earnings guidance for the full year 2017. For the year, the company expects adjusted diluted EPS growth in 2017 are based on adjusted diluted EPS of CAD 10.29 in 2016. The company assumes that in 2017 the Canadian-to-U.S. dollar exchange rate will be in the range of CAD 1.30 to CAD 1.35, the average price of West Texas Intermediate (WTI) will be approximately USD 45 to USD 55 per barrel. To further enhance safety and fluidity of the network, the company also plans to invest approximately CAD 1.25 billion in capital programs in 2017, an increase of 6% over the CAD 1.18 billion spent in 2016.