Progressive Railroading



RAIL EMPLOYMENT

Newsletter Sign Up
Stay updated on news, articles and information for the rail industry


All fields are required.





Rail News Home Kansas City Southern

2/6/2007



Rail News: Kansas City Southern

KCS churns out revenue and income records, reins in operating ratio



The seventh Class I to report fourth-quarter earnings, Kansas City Southern is the seventh to set a few financial records. Quarterly revenue reached an all-time-high $442.4 million, up 14 percent, and operating income totaled a record $88.2 million, up 84.9 percent compared with fourth-quarter 2005 results.

During the quarter, coal revenue jumped 28.3 percent, chemical and petroleum products revenue shot up 26.5 percent, agriculture and minerals revenue increased 14 percent, paper and forest products revenue rose 12.5 percent and intermodal revenue went up 7.6 percent.

In addition, KCS’ diluted earnings per share increased nearly 14-fold to 41 cents and operating ratio improved 7.6 points to 80.1 compared with fourth-quarter 2005 data. Quarterly operating expenses rose only 4.1 percent — despite a $1.5 million year-over-year increase in fuel costs — to $354.2 million.

For the year, KCS generated revenue of $1.7 billion, a 9 percent increase compared with 2005 revenue. Operating income nearly quintupled to $304.3 million, the railroad’s operating ratio improved 6.6 points to 81.7 and operating expenses — excluding non-recurring adjustments — decreased 0.8 percent to $1.4 billion.

“KCS ended 2006 on a positive note,” said Chairman and Chief Executive Officer Mike Haverty in a prepared statement. “Going into the year, we had stated publicly our goal of attaining an operating ratio for 2006 in the area of 82 percent. Our final numbers … underline the fact that KCS has remained on that plan."


Contact Progressive Railroading editorial staff.

More News from 2/6/2007