Friday, July 18, 2014

KCS reports strong 2Q results

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Kansas City Southern early Friday, July 18, 2014, reported higher second-quarter net income and revenue, which it said was powered by strong agriculture and automotive shipments.

Earning for the quarter were $129.8 million, or $1.18 per diluted share, up sharply from $15.4 million, or 14 cents per share, in the comparable quarter of 2013. Revenue rose 12% to $649.7 million, a record.

KCS's operating ratio was 68.3%. Excluding lease termination costs, adjusted operating ratio of 67.0%, a 2.0 point improvement over second quarter 2013, the company said.

"During the second quarter of 2014, KCS experienced strong revenue growth from the shipment of grain and automotive," said President and CEO David L. Starling. "KCS' core carload franchise continues to show strength in line with the general economy, while the energy commodity group declined due to reduced shipments of utility coal."