Revenue growth for 3Q19 was led by a 21% increase in Chemicals and Petroleum due primarily to increased refined fuel products and liquid petroleum gas shipments to Mexico, KCS noted. Agriculture and Minerals revenues grew 15%, driven primarily by improved cycle times. Industrial and Consumer Products and Intermodal revenues also increased by 2% and 1%, respectively; these increases were partially offset by revenue declines in the remaining two commodity groups. Energy revenues declined by 11%, as increased Utility Coal shipments were more than offset by declines in Frac Sand and Crude Oil. Automotive revenues declined by 2%. In 3Q19, KCS’s reported operating expenses were $465.7 million. Excluding restructuring charges related to PSR initiatives and a gain on insurance recoveries related to hurricane damage a year ago, adjusted operating expenses were $453.7 million, 2% higher than 2018. Adjusted operating income was $294 million, 15% higher than a year ago. KCS reported an adjusted 3Q operating ratio of 60.7%, a 2.70 point improvement over 3Q18. Reported net income in 3Q19 was $180.6 million, or $1.81 per diluted share, compared with $174 million, or $1.70 per diluted share in 3Q18. Adjusted diluted earnings per share was $1.94, 24% higher than a year ago. “Kansas City Southern posted all-time record financial results in the third quarter 2019, including adjusted operating income growth of 15% and an adjusted operating ratio of 60.7%,” said President and CEO Patrick J. Ottensmeyer. “These results are a testament to our employees’ hard work, and dedication to improving operational performance and customer service. “We are very pleased with our progress toward implementing PSR principles. Notwithstanding this exceptional performance, we expect to continue optimizing our cost profile while delivering superior customer service and shareholder value.” The post KCS Reports Record Revenue for 3Q19 appeared first on Railway Age. Continue reading...
