Canadian Pacific Railway Ltd. (TSE:CP), which operates in six provinces and 13 U.S. states, advanced in morning trade after posting a five-fold increase in fourth-quarter profit, buoyed by higher freight revenue.
CP Rail gained 2.1 percent to C$161.43 at 10:03 a.m. in Toronto, extending gains over the last year to 39 percent.
Net income rose to C$82 million, or 47 Canadian cents a share, in the three months ended Dec. 31, from $15 million, or 8 Canadian cents a share, in the year-earlier period, the Calgary-based company said in a statement today.
Excluding items, CP Rail earned C$1.91 a share, below the average estimate of C$1.95 a share.
Revenue grew 7 percent to C$1.6 billion.
Looking ahead, the company said sales will probably grew 6 percent to 7 percent in 2014. Earnings per share will rise 30 percent or more from the previous year, it added.
"This journey is far from complete. Riding this positive momentum, I fully anticipate that 2014 will be another year of solid returns for our shareholders," Chief Executive Officer E. Hunter Harrison said in the statement.
Canadian Pacific had 14,977 employees in its workforce at the end of December, 11 percent fewer than a year earlier.