Kansas City Southern’s net income grew 6.8 percent to $108.1 million in the first quarter of 2016 on revenues that dropped 7 percent compared to the previous year, according to the company’s most recent financial statements.
Kansas City Southern, 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 fell grew 6.8 percent year-over-year to $108.1 million in the first quarter of 2016.
Net earnings per diluted share (EPS) increased from $0.91 per diluted share in Q1 2015 to $0.99 per diluted share in Q1 2016 despite revenues dropping 7 percent to $562.7 million.
KCS reported an operating ratio of 66.6 percent for the first quarter, a 3.9 point improvement from 70.5 percent in the same 2015 period.
Carload volumes at the railway fell 5 percent year-over-year in Q1 2016.
“Despite flooding that shut down key portions of our U.S. rail network for over three weeks, KCS delivered solid earnings and operating results,” CEO David L. Starling said in a statement. “That we overcame this very significant challenge while simultaneously scaling costs across the network clearly demonstrates KCS’ ability to react quickly to rapid and unexpected changes to its operating environment.”
KCS earnings up in Q1 2016 despite sliding revenues
