June 29, 2010 / 5:00 PM / 8 years ago

UPDATE 1-CP Rail details financial impact of flooding

* Re-opens main line after 11-day closure

* Expects backed-up goods to be shipped in Q3

VANCOUVER, June 29 (Reuters) - Canadian Pacific Railway Ltd (CP.TO) said on Tuesday this month’s closure of its main transcontinental line due to flooding on Canada’s Prairies could reduce its quarterly earnings by 10 Canadian cents to 13 Canadian cents a share.

CP, Canada’s second biggest railway, reopened the last section of its main line on Tuesday after shutting it 11 days ago due to unprecedented rainfall in southeastern Alberta and southwestern Saskatchewan. Flooding in the region also closed the TransCanada Highway.

The railway said it expected that the majority of shipments that were backed up by the closure will be moved in the third quarter.

Analysts, on average, expect CP to post earnings per share of 86.3 Canadian cents in the second quarter, according to Thomson Reuters I/B/E/S. It was not clear immediately if analysts had already factored in the impact of the flooding. For the first quarter, CP reported earnings of 60 Canadian cents a share.

$1=$1.05 Canadian Reporting by Nicole Mordant; editing by Peter Galloway

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