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.
“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.