Wednesday, June 30, 2010

Flooding erodes CP second-quarter earnings

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What Canadian Pacific says was a “one in 100-year rainfall event (one in 500-year event in some locations)” is expected to reduce the railroad’s earnings per share by 10 to 13 Canadian cents in the second quarter, although CP says a most of the shipments deferred by flooding will be moved in the third quarter.

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CP gave this estimate Tuesday as it announced that the section of its main line east of Medicine Hat, Alta., which has been out since June 18, has now reopened. The southern line between Lethbridge, Alta., and Swift Current, Sask., was reopened earlier.

“During the 11-day outage CP utilized both secondary network routes and detour routes on other railways to minimize impacts todomestic and international supply chains,” said the railroad. “With the resumption of normal traffic routing CP will work closely with its customers and supply chain partners to reschedule and expedite shipments that may have been delayed by the temporary outage.”