Kansas City Southern’s profits up 40% in 1st quarter
Kansas City Southern, parent company of Kansas City Southern Railway Co., Tuesday reported first quarter net income of $12.9 million, up 40 percent compared to $9.2 million in the same quarter last year.
KCS’s quarterly operating income was $61.3 million, up 20 percent from $51 million a year ago. Revenue increased 5.5 percent to $388.4 million, compared to $368.3 million in the year-earlier period. Net income available to common shareholders increased 14 percent to $8 million from $7 million.
The financial increases were in contrast to a 4.6 percent decline to the railway’s carloads in the quarter, which totaled 463,615 units.
“We expect strong revenue growth from the imminent start-up of intermodal service between the Southeast United States and the interior and Pacific Coast of Mexico,” said Michael R. Haverty, KCS’s chairman, president and chief executive officer.
“We see a strong pricing environment in the U.S. and Mexico for the rest of the year, and we anticipate substantial cost improvements by the fourth quarter as we install the KCS computer operating platform, MCS, in Mexico, allowing us to schedule and track individual cars.
“With every quarter, the potential of our combined rail network becomes increasingly evident,” Haverty added.
KCS’s share price jumped 11.16 percent, or by $2.73, to close at $27.20 Tuesday evening on the New York Stock Exchange.