CP Rail Still a Portfolio Mainstay

Article Excerpt

CANADIAN PACIFIC RAILWAY LTD. $64 (Toronto symbol CP; Conservative Growth Portfolio, Manufacturing & Industry sector; SI Rating: Above average) provides freight service through a 13,500- mile rail network between Montreal and Vancouver. It also operates in the U.S. Midwest and Northeast through subsidiaries. Alliances with other rail companies extend its reach to Mexico. Diverse cargo cuts risk CP transports a wide variety of products, such as grain, coal and manufactured goods. That helps cut its reliance on a single industry or customer. Revenue hovered around $3.7 billion from 2001 to 2003. Revenue improved to $3.9 billion in 2004, and to $4.4 billion in 2005, as strong demand for coal, metals and other resources led to higher freight volumes and rates. CP also benefited from the sharp rise in goods imported from Asia. Profit rose from $2.34 a share (total $372.5 million) in 2001 to $3.06 a share ($487.5 million) in 2002, but higher fuel costs cut earnings in 2003 to $2.52 a share ($401.3…