Kansas City Southern Withdraws Earnings Guidance Due To COVID-19 - Quick Facts

(RTTNews) - While reporting its financial results for the first quarter on Friday, Kansas City Southern (KSU) said it is withdrawing its previously provided outlook for revenue, volume, operating ratio and earnings per share due to the general economic uncertainty created by the global COVID-19 pandemic.

In January, Kansas City Southern had forecast earnings per share growth in mid-teens CAGR from 2019 through 2021. The company had also projected 60 percent to 61 percent operating ratio in 2020, and below 60 percent in 2021.

The transportation holding company said it has now revised its previously provided capital expenditure guidance from about 17 percent of revenue to about $450.0 million. The company's guidance for 2021 and 2022 capital expenditures remains at about 17 percent of revenue.

Kansas City Southern is targeting $500.0 million or more of free cash flow in 2020.