KCS reports record Q1 results

Kansas City Southern reported record first-quarter 2018 results, including a 5 percent increase in revenue and a 4 percent hike in operating income compared with last year's first quarter, the Class I announced today.

KCS' revenue in the quarter rose to $639 million from $609.5 million a year ago. The Class I posted record Q1 diluted earnings per share (EPS) of $1.40, up 1 percent, and record Q1 adjusted diluted EPS of $1.30, up 11 percent over Q1 2017.

Operating income in the quarter rose 4 percent to $219 million from $211 million a year ago. Net income slipped a bit to $145 million in the quarter from $147 million in Q1 2017.

Year over year, KCS posted a 1 percent increase in carload volume. Q1 revenue increased in four commodity groups, led by a 17 percent increase in automotive; a 10 percent increase in chemicals and petroleum; and a 9 percent increase in intermodal. Revenue from the industrial and consumer group climbed 4 percent compared to the Q1 2017.

Revenue increases in those commodity groups were partially offset by declines in energy and agriculture and minerals of 11 percent and 2 percent, respectively.

The Class I posted an operating ratio for the quarter of 65.8 percent, a 0.4 point deterioration over the same period a year ago.

“Despite congestion across the North American rail network, KCS grew volumes in all commodity groups except energy and agriculture and minerals during the first quarter 2018,” said KCS President and Chief Executive Officer Patrick Ottensmeyer in a press release. "Furthermore, we maintain our outlook for mid-single digit volume growth for full year 2018."