Canadian Pacific Thursday noted a one-time gain from the sale of a share of the Detroit River Tunnel Partnership boosted it second-quarter net income. Net profit rose to C$157.3 million ($145 million), or 93 Canadian cents a share, for the quarter, compared with C$154.7 million, or C$1, in the comparable 2008 quarter.
Excluding items, earnings dropped to 59 Canadian cents a share from 97 Canadian cents a share a year earlier. That still beat analyst EPS expectations of 38 Canadian cents, before exceptions.
"The recession continues to have a significant impact on our business and although freight volumes appearto have stabilized, we have not yet seen a sustained recovery in traffic," Chief Executive Fred Green said in a statement. Freight volume fell 18%, CP said. Offsetting that to a degree were lower operating costs, down 10% to C$225.8 million compared with the second quarter of 2008.
CP said it would increase its 2009capital program spending to between C$800 million and C$820 million, up substantially from the previous outlook of C$720 million to C$740 million. CP shares climbed 9% in Thursday morning trading.