Thursday, October 29, 2009

KCS sees gains in 3Q from previous quarter

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Kansas City Southern Thursday reported third-quarter revenue of $386.1 million, down 21.4% from the $491.5 million in the third quarter of 2008. But KCS noted that every commodity group recorded higher revenue on a sequential basis from the second quarter, reflecting a gradually improving business environment; KCS 3Q revenue was up 13% from the previous quarter, with carloadings up 12% over the same time period.

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KCS net income of $25.8 million, or $0.27 per diluted share, for the third quarter was down from $48.9 million, or $0.52 per share, in the third quarter of 2008.

Operating income for the third quarter of 2009 was $84.4 million, compared with $111.0 million in 2008. The railroad’s third-quarter operating ratio was 78.1%, compared with 77.4% in the third quarter of 2008. Overall operating costs were down 21% in the third quarter of 2009 compared with the same period in 2008. Fuel expenses were down 45% as a result of a large drop in fuel prices year overy ear as well as reduced consumption.

“KCS’s third-quarter results confirmed comments made by management during the second-quarter earnings call that the company believed it was beginning toexperience a gradually improving business environment,” said Chairman and CEO Michael R. Haverty in a statement. “That KCS recorded sequential volumeimprovement of 12% and revenue growth of 13% provide reason to believe that at least we are seeing some signs of a modest recovery.”