Canadian Pacific Railway Ltd said it plans to spend as much a $730 million this year on upgrading its infrastructure after announcing a slight increase in fourth quarter profit.
The company said its capital investment programme will include about $585 million on improving its rail tracks. The company reported fourth-quarter net income rose 3% to $194 million helped by one-time gains from items such as tax and foreign exchange.
Stripping out the one-time items, earnings dropped 12%, the company said. Revenue dropped 16% to $1.1 billion.
"We have come through an extraordinary year of economic challenges and we met these with focused productivity initiatives that have delivered sustainable improvements," said Fred Green, president and chief executive. "Markets remain uncertain and we will continue to drive efficiency while delivering a reliable service.”
CP is Canada’s second-largest railroad.
CN National Railway, Canada’s largest rail company, earlier this week said adjusted net income fell to $424 million in the fourth-quarter from $531 million.
