UPDATE 3-CP Railway sees big profit boost in 2013 after tough Q4

Tue Jan 29, 2013 3:05pm EST
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* Q4 profit hurt by one-time charges of C$318 mln

* 2013 profit forecast beats expectations

* Stock climbs 4.2 pct on TSX

* Sees "high single digit" revenue growth in 2013

By Susan Taylor

TORONTO, Jan 29 (Reuters) - Canadian Pacific Railway Ltd said on Tuesday its aggressive efficiency push would pay off in a 40 percent increase in earnings this year, sending its shares to an all-time high even after it reported a sharp drop in profit on charges related to the restructuring.

Management at CP Railway, Chief Executive Hunter Harrison said, "made a number of hard decisions this quarter ... With these decisions now behind us, we anticipate record-setting financial and operational results starting in 2013."

Shares of CP, the country's second-largest railroad, have risen more than 50 percent since Harrison took the helm in May. They gained more than 4 percent on the Toronto Stock Exchange on Tuesday, topping the list of net gainers.

Harrison, who was picked last year by CP's biggest shareholder to improve the company's poor around the poorly performing company, has made sweeping job cuts, secured a string of new labor deals, shut down inefficient operations and shelved a costly expansion.   Continued...