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The recession did a number on Kansas City Southern’s second-quarter earnings — as in a very low number. Today, the Class I reported earnings of seven cents per share compared with 56 cents per share in second-quarter 2008. Analysts had expected earnings per share of 8 cents, according to Reuters Estimates.

Quarterly operating income fell from $104.6 million in the year-ago period to $43.4 million and revenue tumbled from $486.2 million to $341.3 million. Analysts had expected revenue of $357.9 million, according to Reuters Estimates.

Revenue was impacted by a 19 percent decline in traffic volume and 72 percent reduction in fuel surcharge revenue. Each of five commodity groups posted less revenue compared with second-quarter 2008 figures, with intermodal/automotive revenue plunging 47 percent and industrial/consumer product revenue falling 40.5 percent.

In addition, KCS’ operating ratio rose 8.8 points to 87.3 compared with second-quarter 2008’s ratio. The Class I’s first-quarter operating ratio was 86.

The lone bright spot in the second quarter: operating expenses, which declined 22 percent year over year to $297.9 million. Casualties and insurance costs fell 59 percent to $7.7 million, fuel costs plunged 56 percent to $40.2 million, compensation/benefits costs declined 18 percent to $79.1 million, purchased services costs dropped 14 percent to $46 million and equipment costs decreased 11 percent to $41.2 million.

“Efficient rail operations and continued stringent expense controls partially mitigated the effects of the prolonged global recession on KCS’ second quarter,” said Chairman and Chief Executive Officer Mike Haverty in a prepared statement.