Kansas City Southern (KCS) has reported a 3.5% fall in revenue in its full year financial results for 2016. Revenue of $2.3bn for the year included $599m produced in Q4, which matched the results from the same period in 2015.
EBITDA stood at $1.1bn in 2016, a 3.2% increase on 2015. Meanwhile fourth quarter EBITDA was $289m, down 1.3% on the same period in the previous year.
Volumes were down 2.2% for the group when compared with 2015. Whilst in the agriculture & minerals and automotive sectors volumes were up, chemicals & petroleum remained flat, with energy and industrial & consumer products contributing to the overall negative growth.
KCS attributed the Mexican peso depreciation to the lack of revenue growth, claiming Q4 figures would have been up on 2015 without its impact. Patrick J Ottensmeyer, President and CEO also added: “Our network faced challenging operational interruptions throughout the year. In addition, volatility in key commodities such as energy, consumer, and intermodal markets created uncertainty during 2016.”
Looking towards 2017, Ottensmeyer said: “The Company is aware of both economic and political uncertainty. However, we continue to emphasize our commitment to growth and we are well positioned to take full advantage of the significant new business opportunities that lie ahead of us.”
Source: Kansas City Southern