Net earnings totaled $552 million for the quarter, a sharp increase from $130.3 million for the fourth quarter of 2016, thanks to U.S. tax reform, which resulted in a $488 million reduction to deferred tax liability.
Kansas City Southern (KCS) saw net earnings jump to $552 million on revenues of $660.4 million for the fourth quarter of 2017, according to the rail line’s financial statement.
Fourth quarter’s net earnings soared from the $130.3 million earned in the fourth quarter of 2016, as the rail line benefited from U.S. tax reform, which resulted in a $488 million reduction to deferred tax liability, said KCS.
Fourth quarter 2017 saw diluted earnings per share of $5.33 as well.
Tax reform is expected to provide an incremental cash flow benefit of an estimated $90 million over the next three years, said KCS.
Revenues increased 10 percent during the fourth quarter of 2017, with volumes increasing 5 percent to 585.6 million carloads. Strong sectors included the chemical and petroleum, automotive and energy sectors.
The fourth quarter also saw improvements in dwell times and consistency in velocity.
Operating expenses rose 9 percent, with noticeable upticks in costs of benefits, fuel, equipment and materials.
For the whole year, KCS saw net earnings of $963.9 million on revenues of $2.5 billion, compared to 2016’s net earnings of $479.9 million and revenues of $2.3 billion. In addition, volumes in 2017 increased 5 percent year-over-year to 2.2 billion carloads.
Kansas City Southern’s net earnings jump in Q4 2017
