The Canadian Pacific (CP) has reported a fall in net profit of 67 per cent to C$33.7 million (US$35.4 million) in the first quarter from a revenue only slightly down on same period last year of $1.2 billion, with intermodal revenues off 0.5 per cent to C$311.8 million, the Shipping Gazette reports.

The profit decline was attributed to dire winter conditions and fuel prices increasing by up to 28 per cent on average per US gallon, damaged further by a delay in recovery of its fuel surcharges. Despite the railway seeing traffic decline it kept revenue pace, only down by 0.3 per cent year on year. Intermodal freight revenue per carload increased by 2.1 per cent compared to its coal and automotive which were down 2.6 per cent and 4.8 per cent respectively.

Network coverage also marred the quarter with average train speed in decline by 13.5 per cent to 19.8 mph and railcar miles travelled down by a daily 7.2 per cent daily. Train accidents were up by 57 per cent on a daily average.

CP president and CEO Fred Green said despite "a succession of extraordinary weather events that never allowed us to get our rhythm back" its network velocity and service reliability is improving.

"Demand is strong and we have additional resources coming online to meet our customers' growth," he added of a first quarter results he described as an "anomaly".

The acquisition of the Dakota, Minnesota & Eastern Railroad Corp (DM&E) at a purchase price for C$1.5 billion resulted in goodwill of C$142.9 million end of first quarter.