KCS reports strong growth in Q3 finances

Kansas City Southern (KCS) has announced its financial results for the quarter ended September 30, 2014. It reported revenue of $678m, an increase of 9% over third quarter 2013; this was built on a 4% increase in carloads. The company also recorded operating income of $229m, 15% higher than operating income in the third quarter of 2013. Accordingly KCS’s margin stood at 33.78%.

Third quarter revenue growth compared to 2013 was led by a 28% increase in automotive and a 13% increase in industrial & consumer products revenue. Intermodal and agriculture & minerals were also strong, growing by 11% and 8%, respectively. Chemical & petroleum revenue grew by 7%. Energy revenue declined by 4%, primarily due to a decline in utility coal and frac sand shipments.

Operating expenses in the third quarter were $448m, 6% higher than Q3 2013 operating expenses. Operating income for the third quarter of 2014 was $229m, a 15% increase year-on-year. KCS achieved a third quarter 2014 operating ratio of 66.1%, a 1.7 point improvement on third quarter of 2013.

“KCS achieved record quarterly financial results as a result of the continued strength and diversity of our franchise,” stated KCS’s President and Chief Executive Officer David Starling. “An operating ratio of 66.1% was attained primarily due to volume growth, especially in the automotive and grain commodity groups, as well as system efficiency and cost controls.”


The world's largest collection of global supply chain intelligence

  • quickly and easily search and gain invaluable insight into the logistics industry
  • Empower everyone from business development executives to CEO level
  • Enhance the role of the market research department