Kansas City Southern reported revenues of $547.9m, a decrease of 23.0% compared to the same period in 2019, this is primarily as a result of an overall decline in demand due to COVID-19. In line with the recent situation, operating profit decreased by 13.3% year-on-year to $180.4m from 208.0m in Q2-19. Operating expenses also fell by 27.4% to $367.5m
For the business segments, all revenues fell. Automotive saw the sharpest fall of 78.0%, from $70.9m in Q2-19 to $15.6 in Q2-20. Intermodal’s revenue declined by 31.0% whilst Energy and Industrial & Consumer Products saw revenue drop by 27.0% and 20.0% respectively, compared to Q2-19. Chemical & Petroleum and Agriculture & Minerals fared slightly better with revenues decreasing by 16.0% and 7.0%, respectively.
President and Chief Executive Officer, Patrick J. Ottensmeyer, commented on the results, “Kansas City Southern demonstrated excellent execution during an extremely challenging quarter. Our network experienced a rapid decline in volumes followed by an unprecedented rebound, forcing us to quickly adjust our service model to match customer demand while optimising our cost structure.”
Due to the general economic uncertainty created by the global COVID-19 pandemic, KCS is not providing guidance on revenue, volume, operating ratio or earnings per share.
Source: Kansas City Southern
