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Rail News: Kansas City Southern

1Q: KCS' income and revenue rise more than 25 percent, but so do expenses

Kansas City Southern is the last Class I to report first-quarter financials, but the railroad’s year-over-year results hardly put KCS in last place among the large roads. Today, KCS reported quarterly consolidated revenue of $198.2 million, a 34 percent increase compared with first-quarter 2004.

Quarterly consolidated operating income rose 40 percent to $24.8 million, while the Kansas City Southern Railway Co.’s quarterly income increased 26.4 percent to $29.7 million and operating ratio improved 0.6 points to 83.4.

However, total quarterly expenses of $173.4 million rose 33 percent compared with the same 2004 period primarily because of higher fuel, and casualties and insurance costs.

“Going forward in 2005, there will be a heightened emphasis on the control of operating expenses,” said KCS Chairman, President and Chief Executive Officer Mike Haverty. “KCSR is implementing a number of efficiency improvements in areas [other than fuel] where it has the ability to impact cost savings through greater budget discipline and streamlined operations.”

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More News from 5/3/2005