Media Kit » Try RailPrime™ Today! »
Progressive Railroading
Newsletter Sign Up
Stay updated on news, articles and information for the rail industry

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

View Current Digital Issue »


Rail News Home Kansas City Southern


Rail News: Kansas City Southern

KCS registers revenue gain, net loss during first quarter as sole TFM owner


During its first quarter with TFM S.A. de C.V. in the fold, Kansas City Southern’s consolidated revenue shot up to $381.1 million compared with $153.9 million in second-quarter 2004. The good news for KCS is that second-quarter revenue on a same-railroad basis (sans TFM) of $178.6 million increased 12.5 percent compared with the same 2004 period.

The bad news is the railroad reported a $25.8 million quarterly net loss compared with second-quarter 2004’s net income of $7 million. KCS’ consolidated operating expenses increased because of a non-cash, pre-tax charge of $35.6 million related to a series of Mexican Supreme Court rulings and other costs tied to the TFM transaction.

"The second quarter was a period of transition for TFM,” said KCS Chairman, President and Chief Executive Officer Mike Haverty in a prepared statement. “Several major efforts were undertaken in the finance area, such as the refinancing of high interest rate debt, re-evaluation of the balance sheet as required by purchase accounting, and a review of TFM’s accounting operations and procedures.”

Subsidiary Kansas City Southern Railway’s (KCSR) quarterly revenue of $178.6 million and operating income of $25.9 million rose 16.8 percent and 12.1, respectively, compared with second-quarter 2004. However, quarterly operating expenses increased 20 percent to $132.8 million and the railway’s operating ratio worsened 0.6 points to 85.5.

During the year’s first half, KCSR generated revenue of $357.9 million, a 19.4 percent increase compared with the same 2004 period. Operating income rose 19.1 percent to $55.6 million. But KCSR’s operating expenses increased 22.1 percent to $262.2 million and operating ratio worsened 0.1 points to 84.5 compared with first-half 2004.

Contact Progressive Railroading editorial staff.

More News from 8/3/2005