CP posted a net income of $C 100 million ($US 99.7 million), a 74%
increase over the same period in 2009. Revenues rose 5% to $C 1.2
billion and the railway also reduced operating costs by a
better-than-expected 2%.

"We put in a solid performance this quarter and our results reflect
both improvements in the economy and CP's ability to rapidly adjust to
changes in our customers' demands," says CP CEO Mr Fred Green. "The
issue we all face is simply the sustainability of the demand. We don't
really know what is going to happen beyond the second quarter and I
don't think our customers do."

Meanwhile rival Canadian National (CN) has revised its earnings and
free cash flow forecast for the rest of the year after posting a 21%
increase in first-quarter net income, which rose to $C 511 million.
This figure includes $C 131 million from the sale of the line west of
Toronto Union Station to the city's transport authority Metrolinx.

A 16% increase in wagon loadings helped propel revenues to $C 1.97
billion, a 6% increase over the same period in 2009, and CEO Mr Claude
Mongeau predicts "solid double-digit" growth for the full year. "If the
economy continues on its recovery trend, increased traffic and solid
execution should help CN produce strong financial results in 2010 and
beyond," he says.

Shares in both railways have surged since the start of the year as
investors' confidence in the industry continues to grow. CN's stock has
gained 15% since January 1, while CP has risen 8.5%.

Earlier this week US Class 1 Railway Norfolk Southern reported a 45%
year-on-year increase in first quarter net income, which rose to $US
177 million.