By Micah Maidenberg

Canadian Pacific Railway Ltd. beat profit expectations for the fourth quarter, helped along by stronger grain shipments and cost cuts.

The railroad company with a network across Canada and parts of the U.S. midwest and northeast on Wednesday reported net income of Canadian $802 million, equivalent to $630 million, or C$5.95 a share.

That was up from C$664 billion, or C$4.82 a share, for the year-earlier period, and thus more than forecasts from analysts. Canadian Pacific's adjusted profit of C$5.06 a share also exceeded the consensus estimate.

Total revenue at the Calgary-based company dropped to C$2.01 billion from C$2.07 billion. Analysts expected C$2.07 billion for the latest period, according to FactSet.

Lower fuel expenses and costs purchased services helped results.

Earlier this month, Canadian Pacific said it shipped more than 31 million metric tons of Canadian grain and grain products during 2020, a calendar-year record. On Wednesday, the company reported said grain-related revenue rose 7% in the fourth quarter to C$508 million.

Write to Micah Maidenberg at micah.maidenberg@wsj.com

(END) Dow Jones Newswires

01-27-21 1630ET