Earnings results were down 87% from $120.4 million, or $1.09 per share, in the second quarter 2012. But excluding items such as foreign exchange rate fluctuations and debt retirement costs initiated by the company, earnings were 96 cents a share, up 9% from 88 cents per share in the second quarter of 2012 and exceeding Wall Street analyst estimates of 95 cents.
Second-quarter revenue rose 6.2% to $579.3 million; carload volume increased 3%. KCS's operating ratio of 69% for the quarter was 1.5 points better than the ratio in the comparable 2012 quarter.
KCS said the severe drought in the U.S. Midwest during 2012 led to a steep decrease in grain volumes in the current quarter, as agriculture and minerals revenue declined.
Said President and CEO David L. Starling, "The combination of solid revenue growth, a steady mid-single digit improvement to pricing, and continued control over operating expenses resulted in a second quarter operating ratio of 69.0%, a 1.5 point improvement over last year's adjusted operating ratio. This performance speaks to the strength of KCS' operations and the diversity of the franchise."