“KCS delivered strong second-quarter volume growth, as our franchise benefited from unique growth drivers and the economy recovered from the COVID-19 downturn,” KCS President and CEO Patrick J. Ottensmeyer said. “Although we are pleased with the strong volume growth, we fell short of our own expectations for customer service.”

KCS 2Q21: Strong Volume; Service ‘Short of Expectations’ (Updated, Cowen)

Kansas City Southern (KCS) on July 16 was the first Class I to report second-quarter 2021 earnings. For the possibly merger-bound railroad, revenue of $749.5 million grew 37% from the prior-year period ($547.9 million) based on higher carload volumes (up 31%), higher fuel surcharge, and the strengthening of the Mexican peso against the U.S. dollar. Service quality, however, was somewhat short of company expectations.