Kansas City Southern Q4 Profit Rises, But Results Miss Estimates - Quick Facts

(RTTNews) - Kansas City Southern (KSU) reported that net income available to common stockholders in the fourth quarter of 2013 totaled $113.8 million or $1.03 per share, up from $91.8 million or $0.83 per share, in the fourth quarter of 2012.

Excluding debt retirement costs and the impacts of foreign exchange rate fluctuations, adjusted diluted earnings per share for fourth quarter 2013 was $1.03 compared to $0.92 in 2012. Analysts polled by Thomson Reuters expected the company to report earnings of $1.14 per share for the quarter. Analysts' estimates typically exclude special items.

Quarterly revenues rose to $615.6 million from $568.4 million in the prior year quarter. Fifteen analysts had consensus revenue estimate of $627.57 million for the quarter. Overall, carload volumes were 2% higher than in fourth quarter 2012.

Compared to 2012, fourth quarter revenue growth was led by a 30% increase in Agriculture & Minerals and an 18% increase in Intermodal. Automotive and Industrial & Consumer Products were also strong, both with revenues growing by 9% in the fourth quarter of 2013. Chemical & Petroleum revenue grew 2% and Energy revenue declined by 17% compared to the prior year, primarily due to a decline in utility coal shipments.

"We expect to maintain our excellent growth momentum in 2014 and beyond. As 2014 evolves, investors can expect to see positive developments in a wide-range of commodity groups, including intermodal, automotive, steel and chemical & petroleum products. Particularly exciting is that growth in these areas, as well as the increase of crude oil traffic originating in Canada and terminating at various Gulf locations, should continue to ramp up over the next five years. And, while longer term, when the positive impact of Mexican energy reform is considered, KCS appears well-positioned for growth over the next decade," said, President and Chief Executive Officer David Starling.