Kansas City Southern Updates Full-Year 2015 Guidance - Quick Facts

(RTTNews) - Kansas City Southern (KSU) said it now expects full-year 2015 low single-digit revenue growth, reduced from the mid single-digit revenue growth provided in the previous full-year 2015 guidance issued in January 2015.

The company said the reduced revenue guidance reflects slower year-to-date carload growth primarily from the energy sector, along with a continued deterioration in the value of the Mexican peso against the U.S. dollar and lower fuel surcharge revenues driven by lower WTI prices, as shown in accompanying Chart A. As shown in the accompanying Chart B, the company expects the impact of lower carload volumes to result in an approximate 2% lower revenue growth for the year as compared to prior guidance. The Company expects the combined impact of further foreign exchange rate deterioration and lower fuel surcharge revenues to be an additional approximate 2% reduction in revenue growth as compared to prior guidance.

Further, the company said as a result of the slower than expected carload growth, the first quarter 2015 revenue is approximately flat quarter to date to 2014. Foreign exchange and fuel surcharge revenues are expected to negatively impact first quarter 2015 revenues by about 4% compared to first quarter 2014. Additionally, first quarter 2015 adjusted earnings per share is expected to be flat to slightly higher than first quarter 2014.