Kansas City Southern Q3 Profit Increases - Quick Facts

(RTTNews) - Kansas City Southern (KSU) reported that its net income available to common stockholders for the third quarter of 2014 increased to $138.0 million, or $1.25 per share, from $118.3 million, or $1.07 per share, in the third quarter of 2013.

Excluding the impacts of foreign exchange rate fluctuations and debt retirement costs, adjusted earnings per share for third quarter 2014 was $1.29, compared with $1.10 in the third quarter of 2013, a 17% increase. Analysts polled by Thomson Reuters expected the company to report earnings of $1.26 per share for the quarter. Analysts' estimates typically exclude special items.

Quarterly revenues grew to $677.5 million from $621.6 million in the prior year. Overall, carload volumes were 4% higher than in third quarter 2013. Wall Street expected revenues of $671.77 million for the quarter.

Third quarter revenue growth compared to 2013 was led by a 28% increase in Automotive and a 13% increase in Industrial & Consumer Products. Intermodal and Agriculture & Minerals were also strong, growing by 11% and 8%, respectively. Chemical & Petroleum revenue grew by 7%. Energy revenue declined by 4%, primarily due to a decline in utility coal and frac sand shipments.

"KCS achieved record quarterly financial results as a result of the continued strength and diversity of our franchise," stated. "An operating ratio of 66.1% was attained primarily due to volume growth, especially in the automotive and grain commodity groups, as well as system efficiency and cost controls.

"We are optimistic about the remainder of the year and reaffirm our updated 2014 goals outlined to investors in September. Looking ahead, we expect KCS' long-term growth to be fueled by system-wide opportunities, which position KCS very well over the next several years," said President and Chief Executive Officer David Starling.