KCS posts 'strong' Q3 financial results

Kansas City Southern reported record third-quarter operating income, operating ratio and adjusted earnings per share, company officials announced today.

Operating income for third-quarter 2017 rose 17 percent to $234 million, adjusted earnings per share increased 21 percent to $1.35 and the operating ratio improved 2.5 points to 64.4 percent compared with third-quarter 2016 results, according to a KCS press release.

Revenue for the quarter climbed 9 percent to $657 million on a 3 percent increase in carloads compared with the same period last year. Net income in Q3 2017 totaled $130 million, or $1.23 per diluted share, compared with $121 million, or $1.12 per diluted share, in Q3 2016.

Year over year, operating expenses rose 4 percent to $423 million.

KCS' third-quarter performance was "strong" even with Hurricane Harvey's impact on the railroad's U.S. Gulf Coast and cross-border traffic in August and September, said President and Chief Executive Officer Patrick Ottensmeyer.

"Despite the severity of the storm and widespread flooding, we recovered quickly from the extended service outage, delivering record third-quarter operating income, operating ratio and adjusted earnings per share," said Ottensmeyer.

By commodity category, KCS posted third-quarter revenue increases in chemical and petroleum, up 10 percent; industrial and customer products, up 6 percent; agriculture and minerals, up 5 percent; energy, up 51 percent; and automotive, up 24 percent, compared with third-quarter 2016 results.