Record 3Q revenue for KCS
Written by Douglas John BowenKansas City Southern Friday, Oct. 18, 2013 reported third-quarter net income of $119 million, or $1.07 per diluted share, up from $91 million, or 82 cents per diluted share, in the third quarter of 2012. The increase was driven by record third-quarter revenue of $622 million, up 8% from a year ago, with carloads up 3%.
Per share results were just shy of Wall Street analyst estimates, which foresaw earnings of $1.11 per share, though Street revenue estimates were roughly matched by the railroad. Excluding the impacts of debt retirement costs and foreign exchange rate fluctuations, adjusted diluted earnings were $1.10 compared with $0.95 a year ago.
KCS’s operating ratio was 67.8%, a 0.9 point improvement from the third quarter of 2012, the railroad said.
Revenue growth was spearheaded by a 17% increase in intermodal moves, with Industrial & Consumer, Agriculture & Minerals, and Automotive sectors all growing by 7%. Revenues from Energy and Chemicals & Petroleum grew by 6% and 3%, respectively, over 2012, KCS said.
“Kansas City Southern achieved record revenues and carloads as a result of solid, sustainable growth opportunities and strong execution by our team,” stated President and Chief Executive Officer David L. Starling. “This performance demonstrates KCS’ ability to absorb the impacts of a challenging economic environment while consistently delivering strong top-line and bottom-line results.
“Particularly exciting is the fact that our cross-border revenue grew by 16% in the quarter. In addition to continued strength in cross-border intermodal, cross-border revenue also benefited from strength in steel shipments and an early rebound in export grain,” Starling emphasized.
