Kansas City Southern Q2 Profit Tops View, Revenues Miss - Quick Facts

(RTTNews) - Kansas City Southern (KSU), a transportation holding company, reported Tuesday that its second -quarter net income totaled $120.5 million or $1.11 per share, higher than $112.2 million or $1.01 per share a year ago.

Adjusted earnings for the quarter were $131.6 million or $1.22 per share, compared to $113.7 million or $1.03 per share in second quarter 2015.

On average, 18 analysts polled by Thomson Reuters expected earnings of $1.03 per share for the quarter. Analysts' estimates typically exclude special items.

Operating income was $220 million, an increase of 18% from the second quarter 2015. KCS reported a second quarter operating ratio of 61.3%, a 6.8 point improvement from last year.

Revenues were $568.5 million, a decrease of 3% from prior year's $585.8 million. Analysts were looking for revenues of $572.96 million.

Excluding the estimated impacts of Mexican peso depreciation and lower U.S. fuel prices, revenue increased 2%.

The company noted that its carloads were up 2% in June and ended unchanged with second quarter a year ago. This was mainly due to continued good performance in Chemical & Petroleum and Agriculture & Minerals business units and a strengthening in Automotive business late in the quarter.

Kansas City Southern's President and Chief Executive Patrick Ottensmeyer said, "Our service was affected for the second consecutive quarter by the impact of flooding in the Houston, Texas area, which resulted in a three-week shut-down of a bridge on the route KCS utilizes for its cross-border traffic. While bridge repairs were being made, KCS had to detour considerable traffic onto other carriers' routes."