CALGARY -- Canadian Pacific Railway (CP.TO) says revenue grew by five per cent to $1.71 billion from $1.64 billion and earnings per share rose 159 per cent to $6.77 in the fourth quarter compared with the same period a year ago.

It says earnings were bolstered by provision of $527 million to account for deferred income tax recoveries thanks to U.S. tax reforms enacted in December which more than made up for tax increases by Saskatchewan and B.C. governments.

CEO Keith Creel credits fourth-quarter revenue gains to enhanced service offerings, precision railroading and strategic partnerships with customers.

Freight revenue from metals, minerals, and consumer grew 30 per cent, while energy, chemicals and plastics jumped 20 per cent.

He says CP Rail expects 2018 revenue growth in "the mid-single digits" and adjusted earnings per share growth in the low double-digits.

CP Rail says its operating ratio, a measure of operating expenses as a percentage of revenues, fell slightly to 56.1 per cent from 56.2 per cent in the year-earlier quarter.

For the year, revenue was $6.55 billion in 2017, compared with $6.23 billion in 2016