CALGARY, Alta. — Canadian Pacific has reported a net income of $796 million for 2006, an increase of 47% compared with the year before. The numbers included a tax benefit of $176 million because of a decrease in Canadian federal and provincial income tax rates. CP also reported a record operating income of $1.129 billion, an increase of 13% compared with 2005. Revenue grew 4% to $4.583 billion, with operating expenses increasing by only 2%.

“I’m pleased with the financial results,” said Fred Green, president and CEO, “We focused on cost containment and improving the fluidity of our operations, and, with our diversified customer portfolio, we delivered strong results while overcoming a drop in coal revenues of $137 million. As well, I am particularly delighted with our team’s improvement on the safety front. We reduced personal injuries by 17% and train accidents by 39% cent over 2005, again making CP one of the safest railroads in North America.”