Kansas City Southern, the first Class I railroad out of the earnings report gate, took a revenue hit based on a carloadings drop, yet managed to post a 58.8% quarterly operating ratio. KCS also will initiate a $500 million share repurchase program on Oct. 16.
Kansas City Southern (KCS) has promoted Rodrigo Flores from Vice President Automotive to Vice President Automotive and Intermodal Sales, effective Sept. 1, 2020. In this expanded role, Flores will be responsible for the automotive and intermodal business units in the U.S. and Mexico.
Kansas City Southern (KCS) has formally joined the global network of Operation Clean Sweep® (OCS)—the Plastic Industry Association and American Chemistry Council’s Plastics Division’s campaign to reduce pellet, flake and powder loss for greater product stewardship and environmental protection. OCS aims to reach all aspects of the plastics industry and is being adopted globally through the Global Declaration of Solutions to Marine Litter.
Two private equity firms are considering a takeover bid for Kansas City Southern, according to a report based on information from anonymous sources in the Wall Street Journal posted late afternoon on July 31, just before the closing bell on Wall Street.
Kansas City Southern (KCS) reported 2Q20 revenues of $547.9 million, a decrease of 23% from 2Q19, primarily as a result of an overall decline in demand due to COVID-19. Overall, carload volumes were down 21% compared to the prior year.
“We view concerns around Kansas City Southern’s concession in Mexico as overblown. The exclusivity provision cannot be revisited until 2027 and the concession remains in effect for 20 years after that. Further, KSU is improving its operations via PSR, which should aid Mexico as reliable rail service is likely to be a necessity for the country as it grows its manufacturing base. Reiterate Outperform.”
“Shippers expect rail price increases of 2.3%, up 40bps sequentially, above rail cost inflation, but well below the survey’s average. Economic expectations are all higher sequentially; some remain below the survey’s average while some are very positive indicators. With PSR cost-cutting, growth opportunities and the ability to capitalize on supply chain near-shoring, Kansas City Southern remains our top rail pick.”
Kansas City Southern de Mexico, S.A. de C.V. (KCSM) President, General Manager and Executive Representative Dr. Jose Guillermo Zozaya Delano will retire as of Aug. 1, 2020. Delano will be succeeded by Vice President and Director General Oscar Augusto Del Cueto Cuevas.
Kansas City Southern (KCS) has released a 2019 sustainability data update to its sustainability report, “For the Long Haul: Delivering Prosperity, Valuing People, Protecting the Planet,” which shows the Class I railroad improved its U.S. and Mexico consolidated reportable train accident frequency ratio and consolidated reportable injury frequency ratio, and reduced its use of diesel fuel.
Kansas City Southern (KCS) has appointed Manny Loureiro as Vice President and Chief Engineer with responsibility for the engineering departments in the U.S. and Mexico. He reports to KCS Executive Vice President and Chief Operating Officer Jeffrey M. Songer, and replaces Vernon “Buck” Jones, who plans to retire this summer after a 42-year career with the company.