Kansas City Southern’s net income grew 6.7 percent to $120 million in the second quarter of 2016 on revenues that slipped 3 percent compared to the previous year, according to the company’s most recent financial statements.
Kansas City Southern (KCS), a transportation holding company that owns the Kansas City Southern Railway Company, Kansas City Southern de México, S.A. de C.V., and a 50 percent interest in Panama Canal Railway Company, reported net earnings grew 6.7 percent year-over-year to $120 million in the first quarter of 2016.
Net earnings per diluted share (EPS) increased from $1.01 in Q2 2015 to $1.11 per diluted share in Q2 2016 despite revenues slipping 3 percent to $569 million. Excluding the impacts of foreign exchange rate fluctuations, adjusted diluted EPS stood at $1.22 per share, compared with $1.03 per share in second quarter 2015.
The Kansas City, Mo.-based Class I railway posted similar results last quarter, when earnings were up 6.8 percent to $108.1 million compared with the same 2015 period.
KCS reported an operating ratio of 61.3 percent for the second quarter, a 6.8 point improvement from 68.1 percent the previous year.
Carload volumes at the railway were relatively unchanged year-over-year at 537,000.
“On balance, we were pleased with our second quarter 2016 results, particularly with the positive volume trend experienced during late May and the entire month of June,” President and Chief Executive Patrick J. Ottensmeyer said in a statement. “KCS’ carloads were up 2% in June and ended unchanged with second quarter a year ago largely due to continued good performance in our Chemical & Petroleum and Agriculture & Minerals business units and a strengthening in our Automotive business late in the quarter.
“Our service was affected for the second consecutive quarter by the impact of flooding in the Houston, Texas area, which resulted in a three-week shut-down of a bridge on the route KCS utilizes for its cross-border traffic,” he added. “While bridge repairs were being made, KCS had to detour considerable traffic onto other carriers’ routes.”
KCS continues to grow earnings despite sliding revenues
