Kansas City Southern (KCS) reported revenues of $731.7m for Q1 2020, an increase of 8% year-on-year (Q1 2019: $674.8m).
The increase was primarily led by a 18% increase in Chemicals and Petroleum segment to $198.6m, due primarily to increased refined fuel products and liquid petroleum gas shipments to Mexico. Intermodal revenues grew 11% to $88.7m, driven primarily by strong cross-border shipments. Agriculture and Minerals and Industrial and Consumer Products revenues also increased by 9% and 6%, to $134.5m and $159.0m respectively.
These increases were partially offset by revenue declines in the remaining two commodity groups. Energy revenues declined by 13% to $56.3m, as increased Crude Oil shipments were more than offset by declines in Utility Coal and Frac Sand; Automotive revenues declined by 6% to $53.9m.
First quarter operating expenses were $442.9m, including $6.0m of restructuring charges.
Overall, carload volumes were up 4% compared to prior year.
Operating income was $288.8m and the reported operating ratio was 60.5%. First quarter net income was $152.3m.
“KCS posted a record first quarter, driven by 8% revenue growth and judicious expense management,” stated President and Chief Executive Officer, Patrick J. Ottensmeyer. He added: “As pleased as we are with this exceptional performance, we have now turned our full attention to the rapidly changing operating and economic environment. The COVID-19 pandemic presents KCS and companies across the globe with unprecedented challenges and uncertainty. We are responding by prioritizing the safety of our employees and ensuring business continuity. At the same time, we are focusing on rightsizing our resources in the face of declining volumes, while remaining prepared for a return to volume growth.”
Source: Kansas City Southern
