Canadian Pacific says Fording's coal sales expectations in-line with guidance

    CP'S 2007 earnings still on track despite harsh weather

    CALGARY, March 21 /CNW/ - Canadian Pacific (TSX/NYSE:   CP) re-confirmed
its guidance today in response to the recent announcement by Fording Canadian
Coal Trust of its range of coal sales for the calendar year 2007. Fording's
forecast is in-line with CP's business model, and 2007 earnings guidance of
$4.30 to $4.45 per diluted share, (excluding the impact of foreign exchange
gains and losses on long-term debt and other specified items) remains
unchanged, in spite of weather related first-quarter challenges.
    "The recent announcement from Fording is good news for Canadian Pacific,"
said Fred Green, President and CEO. "Their coal sales forecast combined with
the need to rebuild depleted inventories at port are consistent with our
expectation to handle approximately 2 million incremental metric tonnes of
coal for Elk Valley Coal Partnership this year compared with 2006.
    CPR serves all of the mines in southeastern British Columbia owned by Elk
Valley Coal Partnership (EVC), in which Fording has a 60-per-cent interest.
    "Our rail operations have experienced a tough start to 2007," added Mr.
Green. "Since the beginning of the year, we have experienced near-record snow
pack in the mountains, flooding in the Midwest, and most recently, elevated
rainfall and an accelerated melt in our western corridor. These conditions
have combined to produce snow and mud slides and wash-outs that have, in
various locations, closed both the Trans-Canada Highway and our railway. These
weather related conditions, along with impacts at the Port of Vancouver
related to the strike at CN, have affected the operational fluidity of CP's
rail network this quarter. Although we remain confident that we can deliver on
our 2007 guidance of $4.30 to $4.45 diluted earnings per share, first-quarter
revenues will be softer than expected. The affirmation of coal sales targets
by Fording combined with continued strong demand in other sectors gives us
confidence that we will overcome our first-quarter challenges."
    Mr. Green will provide a 2007 CP business update on March 22, 2007 at
08:00 EDT at the JP Morgan Aviation and Transportation Conference in New York
City. There will be a live audio webcast of Mr. Green's presentation. The
webcast, as well as the presentation materials, will be available in the
Investor section of CPR's website,

    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, including but not limited to
the following factors: changes in business strategies; general global economic
and business conditions; risks in agricultural production such as weather
conditions and insect populations; fluctuations in the value of the Canadian
dollar relative to the U.S. dollar; 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; changes in
taxes and tax rates; potential increases in maintenance and operating costs;
uncertainties of litigation; labour disputes; timing of completion of capital
and maintenance projects; interest rate fluctuations; effects of changes in
market conditions on the financial position of pension plans; and various
events that could disrupt operations, including severe weather conditions,
security threats and governmental response to them, and technological changes.
    There are factors that could cause actual results to differ from those
described in the forward-looking statements contained in this news release.
These more specific factors are identified and discussed in the Outlook
section and elsewhere in this news release with the particular forward-looking
statement in question.
    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.

    Canadian Pacific, through the ingenuity of its employees located across
Canada and in the United States, remains committed to being the safest, and
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 CP 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: 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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