Canadian Pacific Railway Limited reported unaudited consolidated earnings results for the fourth quarter and year ended Dec. 31, 2017. For the quarter, the company reported total revenue of CAD 1,713 million against CAD 1,637 million a year ago. Operating income was CAD 753 million against CAD 717 million a year ago. Income before income tax expense was CAD 621 million compared to CAD 527 million a year ago. Net income was CAD 984 million or CAD 6.77 per basic and diluted share against CAD 384 million or CAD 2.61 per diluted share a year ago. Cash provided by operating activities was CAD 733 million compared to CAD 768 million a year ago. Additions to properties were CAD 445 million compared to CAD 280 million a year ago. Adjusted income was CAD 469 million against CAD 448 million a year ago. Adjusted diluted earnings per share were CAD 3.22 against CAD 3.04 a year ago. Adjusted operating income was CAD 753 million against CAD 717 million a year ago.

For the full year, the company reported total revenue of CAD 6,554 million against CAD 6,232 million a year ago. Operating income was CAD 2,793 million against CAD 2,578 million a year ago. Income before income tax expense was CAD 2,498 million compared to CAD 2,152 million a year ago. Net income was CAD 2,405 million or CAD 16.44 per diluted share against CAD 1,599 million or CAD 10.63 per diluted share a year ago. Cash provided by operating activities was CAD 2,182 million compared to CAD 2,089 million a year ago. Additions to properties were CAD 1,340 million compared to CAD 1,182 million a year ago. Adjusted income was CAD 1,666 million against CAD 1,549 million a year ago. Adjusted diluted earnings per share were CAD 11.39 against CAD 10.29 a year ago. Adjusted operating income was CAD 2,742 million against CAD 2,578 million a year ago. Adjusted EBIT was CAD 2,737 million against CAD 2,569 million a year ago. Adjusted EBITDA was CAD 3,228 million against CAD 3,153 million a year ago. Adjusted net debt as at December 31, 2017 was CAD 8,380 million against CAD 9,154 million a year ago.

With a 2018 plan that balances strategic growth with continued productivity improvement, the company expects revenue growth in the mid-single digits and adjusted diluted EPS growth to be in the low double-digits. CP's expectations for adjusted diluted EPS growth in 2018 are based on adjusted diluted EPS of CAD 11.39 in 2017. It expects an effective tax rate in the range of 24.5 to 25%. As it continues to invest in service, productivity and safety, the company plans to invest between CAD 1.35 billion to CAD 1.5 billion in capital programs in 2018. The primary reason for the wide range on CapEx is due to the possibility of investing in upgrading their grain hopper fleet. They may also take advantage of the opportunity to actively deliver and retire some of these debts, so they should expect lower interest expense in 2018.