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Operating inefficiencies caused by the implementation of a new computer platform hampered Kansas City Southern's third-quarter performance.


On Oct. 31, the railroad reported a $9.8 million decrease in consolidated operating income and a 94.2 operating ratio, which worsened 8.3 points compared with third-quarter 2001's 85.9.


However, the railroad's quarterly net income of $10.6 million increased 17 percent compared with $9 million last year.


During the year's first nine months, KCS earned $36.8 million in net income compared with $19.6 million during the same 2001 period.


The railroad's consolidated operating income declined $900,000 during that span because of a $13.8 million revenue decrease, which was partially offset by operating expenses that dropped $12.9 million compared with last year.


KCS' nine-month operating ratio of 89.3 matched last year's.