UPDATE 3-CP Railway profit soars, sees record year-end results

Wed Apr 24, 2013 3:24pm EDT
 
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* EPS climbs to C$1.24 vs 82 Canadian cts year earlier

* Railway beats market estimates for profit, sales

* Key operating ratio improves to 75.8 pct

* Sees best year-end financial performance in history

By Susan Taylor and Solarina Ho

TORONTO, April 24 (Reuters) - Canadian Pacific Railway Ltd said a hard-driving efficiency push coupled with revenue gains helped fuel its best first-quarter results since Canada's No. 2 rail carrier was founded in 1881.

But that is just the beginning, management promised on Wednesday, outlining plans for an intense review of operations starting next month that will scrutinize every part of the railway, down to the schedule of each train.

Led by Chief Executive Hunter Harrison, an industry veteran with a history of turning around struggling companies, and Chief Operating Officer Keith Creel, the review is expected to eliminate even more jobs and may uncover surplus land for sale.

Creel, who Harrison lured from Canadian National Railway to be his successor, plans up to five review sessions in 2013 and said results will start to show in the second half of the year.   Continued...