Kansas City Southern Reports Strong First Quarter Results

Kansas City Southern reported carload volumes up 4% compared to prior year

KANSAS CITY, MO (STL.News) Kansas City Southern (KCS) (NYSE:KSU) reported record revenues of $731.7 million, an increase of 8% from first quarter 2019.  Overall, carload volumes were up 4% compared to prior year.

Kansas City Southern First Quarter 2020

First quarter revenues were $731.7 million, an increase of 8% primarily led by a 18% increase in Chemicals and Petroleum due primarily to increased refined fuel products and liquid petroleum gas shipments to Mexico.  Intermodal revenues grew 11%, driven primarily by strong cross-border shipments. Agriculture and Minerals and Industrial and Consumer Products revenues also increased by 9% and 6%, respectively.  These increases were partially offset by revenue declines in the remaining two commodity groups.  Energy revenues declined by 13%, as increased Crude Oil shipments were more than offset by declines in Utility Coal and Frac Sand; Automotive revenues declined by 6%.

First quarter operating expenses were $442.9 million, including $6.0 million of restructuring charges related to PSR initiatives.  Operating income was $288.8 million and the reported operating ratio was 60.5%; on an adjusted basis, operating ratio was 59.7%.  First quarter net income was $152.3 million, or $1.58 per diluted share.  Adjusted first quarter operating income, operating ratio, net income and diluted earnings per share were as follows:

NOTE: this is NOT the complete release.