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RAIL EMPLOYMENT



Rail News Home Kansas City Southern

10/29/2003



Rail News: Kansas City Southern

KCS earns less quarterly, year-to-date net income, but operating income and revenue rise


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On Oct. 29, Kansas City Southern reported third-quarter net income of $4.3 million, a nearly 60 percent decline compared with $10.6 million during the same 2002 period.

However, quarterly revenue rose 5 percent to $146.3 million, operating income more than doubled to $14.9 million, operating expenses dropped 2 percent to $115.2 million and the railroad's operating ratio improved 7.8 points to 87.5 compared with third-quarter 2002.

"We are also cautiously optimistic that KCSR's 5 percent revenue growth during the quarter is indicative of a strengthening economy and that it can continue to experience top line growth, especially in 2004," said KCS Chairman, President and Chief Executive Officer Mike Haverty in a prepared statement. "A combination of revenue growth and stringent cost controls resulted in KCSR operating income more than doubling over the previous year's quarter, an acceptable achievement given a 25 percent increase in fuel costs, and continued high natural-gas prices that affected plastics commodity group shipments."

During the year's first nine months, KCS earned net income of $17.4 million, which decreased $19.4 million compared with the same 2002 period because of lower net earnings from unconsolidated affiliates and increasing costs.

However, consolidated revenue of $432.8 million increased 3 percent, consolidated operating income of $35.9 million rose 5.4 percent and revenue of $428.3 million was up 3 percent compared with the same 2002 period.


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