Canadian Pacific building momentum for 2008

    CALGARY, Oct. 30 /CNW/ - Canadian Pacific Railway (TSX/NYSE:   CP) will
provide information today about its activities and plans for 2008 at its
annual Investor Day. This will include an overview of CP's 2008 strategy,
revenue and earnings outlook, capital expenditures and free cash expectations.
The workshop will be webcast live from 1:15 pm to 5:00 p.m. Eastern time.
    "Canadian Pacific is in motion and our focus on execution excellence will
continue to deliver results in 2008," said Fred Green, President and Chief
Executive Officer. "We are gaining momentum, and our acquisition of the
Dakota, Minnesota and Eastern Railroad, combined with our recently announced
Alberta Industrial Heartland strategy, shows that Canadian Pacific is evolving
to expand the reach of our franchise. We will continue to create shareholder
value as we pursue our vision to be the safest, most fluid railway in North
    The outlook for 2008 for diluted earnings per share before foreign
exchange gains and losses on long-term debt and other specified items is
expected to be in the range of $4.70 to $4.85, an increase of nine per cent to
13 per cent over $4.30, the lower end of the 2007 earnings guidance range. The
2008 estimate assumes crude oil prices averaging US $80 per barrel, an average
currency exchange rate of the U.S. dollar at par with the Canadian dollar and
North American economic (GDP) growth of 2.5 per cent.
    CP expects to grow total revenue by four per cent to six per cent in 2008
and total operating expenses are expected to increase by three per cent to
five per cent.
    Capital investment is expected to be in the range of $885 million to
$895 million in 2008, essentially flat from anticipated capital spending in
    CP expects free cash to be in excess of $250 million in 2008.
    A live audio webcast of today's Investor Day and all presentation slides
will be available on the Investors section of CP's website, The
webcast and presentation slides will also be archived on the website.

    Presentation of non-GAAP earnings

    CP presents non-GAAP earnings in this news release to provide a basis for
evaluating underlying earnings trends in its business that can be compared
with prior periods' results of operations. These non-GAAP earnings exclude
foreign currency translation effects on long-term debt, which can be volatile
and short term, and other specified items, which are not among CP's normal
ongoing revenues and operating expenses. The impact of volatile short-term
rate fluctuations on foreign-denominated debt is only realized when long-term
debt matures or is settled.
    Earnings that exclude foreign exchange currency translation effect on
long-term debt and other specified items, as described in this news release,
have no standardized meanings and are not defined by Canadian generally
accepted accounting principles and, therefore, are unlikely to be comparable
to similar measures presented by other companies.
    Free cash is calculated as cash provided by operating activities, less
cash used in investing activities and dividends.
    Other specified items are material transactions that may include, but are
not limited to, restructuring and asset impairment charges, gains and losses
on non-routine sales of assets, unusual income tax adjustments, and other
items that do not typify normal business activities.

    Note on forward looking-information

    This news release contains certain forward-looking statements relating
but not limited to our operations, anticipated financial performance and
business prospects. Undue reliance should not be placed on forward-looking
information as actual results may differ materially.
    By its nature, CP's forward-looking information involves numerous
assumptions, inherent risks and uncertainties which could cause actual results
to differ from those described in the forward-looking statements contained in
this news release, including but not limited to the following factors: changes
in business strategies; general North American and global economic and
business conditions; risks in agricultural production such as weather
conditions and insect populations; the availability and price of energy
commodities; the effects of competition and pricing pressures; industry
capacity; shifts in market demand; changes in laws and regulations, including
regulation of rates; changes in taxes and tax rates; potential increases in
maintenance and operating costs; uncertainties of litigation; labour disputes;
risks and liabilities arising from derailments; timing of completion of
capital and maintenance projects; currency and interest rate fluctuations;
effects of changes in market conditions on the financial position of pension
plans and investments; and various events that could disrupt operations,
including severe weather conditions, security threats and governmental
response to them, and technological changes.

    CP undertakes no obligation to update publicly or otherwise revise any
forward-looking information, whether as a result of new information, future
events or otherwise except as required by law.

    Canadian Pacific, through the ingenuity of its employees located across
Canada and in the United States, intends to be the safest, most fluid railway
in North America. Our people are the key to delivering innovative
transportation solutions to our customers and to ensuring the safe operation
of our trains through the more than 900 communities where we operate. Our
combined ingenuity makes Canadian Pacific a better place to work, rail a
better way to ship, and North America a better place to live. Come and visit
us at to see how we can put our ingenuity to work for you. Canadian
Pacific is proud to be the official rail freight services provider for the
Vancouver 2010 Olympic and Paralympic Winter Games.

For further information:

For further information: Contacts: Media: Leslie Pidcock, Tel.: (403)
319-6878, e-mail:; Investment Community: Janet Weiss,
Assistant Vice-President Investor Relations, Tel.: (403) 319-3591, e-mail:

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