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Rail News: Kansas City Southern

KCS reports mixed results in annual, quarterly financial performance

On Jan. 30, Kansas City Southern reported 2002 net income of $54.2 million compared with $30.7 million in 2001. The railroad earned more income because of a $14.3 million increase in equity earnings from Grupo TFM, a $13.4 million rise in other income, a $7.8 million decline in interest expense and a $4.4 million gain from the sale of Mexrail Inc. to KCS affiliate TFM S.A. de C.V.

However, KCS' annual operating income declined $7.4 million and operating revenue dropped $12.7 million compared with 2001. The Class I's 2002 operating ratio of 89.2 rose 0.9 points.

KCS' operating ratio increased in the fourth quarter, too, to 88.6 compared with fourth-quarter 2001's 84.8.

And the Class I's quarterly revenue dropped $2 million and operating expenses increased $3.7 million compared with the same 2001 period.
However, the railroad's quarterly net income of $17.4 million increased $6.3 million.

"Key performance measurements for KCS, such as terminal dwell time, train speed and average daily crew starts, are starting to show improvements compared to third-quarter 2002 performance levels, which is evident in fourth-quarter operating income," said Mike Haverty, KCS chairman, president and chief executive officer, in a prepared statement, adding that the railroad's Management Control System operating platform will improve operational effectiveness and efficiency through 2003.

Contact Progressive Railroading editorial staff.

More News from 1/30/2003