CP fourth-quarter earnings up 27%

Canadian Pacific Railway early Wednesday said its fourth-quarter profit jumped 27%, with net income of C$186 million, or C$1.09 a share, up from C$146 million or 87 Canadian cents a share, in the fourth quarter of 2009. That beat Wall Street analyst consensus estimates of C$1.08 per share. Revenue rose 13% to C$1.29 billion.

CP improved its operating ratio during the quarter to 77.0% from an adjusted 80.6% in the comparable quarter a year ago. CP said it expects to achieve its three-to-five year target of an operating ratio in the “low 70s.”

“We continue to see strong demand for rail service across all lines of business,” said CP chief executive Fred Green. CP grain shipments, down 3% during the quarter, was the only commodity that declined during the quarter.

CP’s capital spending target for 2011 falls between C$950 million and C$1.05 billion.