Teck strike hurt CP Rail

Article Excerpt

CANADIAN PACIFIC RAILWAY LTD. $62.57 (Toronto symbol CP; Shares outstanding: 169.4 million; Market cap: $10.6 billion; TSINetwork Rating: Average; Dividend yield: 1.7%; www.cpr.ca) reported that its earnings per share fell 66.7% in the three months ended March 31, 2011, to $0.20 from $0.60 a year earlier. Bad winter weather and a 10-week strike at major customer Teck Resources’ Elkview coal mine in B.C. hurt results. Still, profits should rebound now that these one-time events have passed. As well, CP is increasing the speed and length of its trains. The company is also introducing new surcharges to help offset its higher fuel costs. CP Rail is a buy. buy…