Railroad News

By This email address is being protected from spambots. You need JavaScript enabled to view it., Editor

Kansas City Southern logged record third-quarter 2019 revenue of $747.7 million, a 7 percent increase over the same quarter a year ago, the Class I announced today.

The railroad was helped by a 21 percent increase in refined fuel shipments to Mexico, as well as cost-cutting efforts. Overall, carload volumes were flat in the quarter compared with last year, KCS officials said in a press release.

It still may be summer, but it's not too early for Kansas City Southern to roll out the 2019 schedule for its 19th annual Holiday Express train.

The six-car festive train will depart Nov. 27 from Shreveport, Louisiana, on this year's tour, which will stop in 20 communities in five U.S. states on 25 dates. The route will end Dec. 22 at Union Station in Kansas City, Missouri.

Kansas City Southern today reported record second-quarter revenue of $714 million, a 5 percent increase on flat volumes compared with the previous year's same quarter.

Year-over-year revenue growth for the quarter was led by a 19 percent increase in chemicals and petroleum shipments, particularly to Mexico, as well as a 5 percent increase in automotive, KCS officials said in a press release.

By This email address is being protected from spambots. You need JavaScript enabled to view it., Managing Editor

BMW Group and Mexican government officials last week marked the opening of the automaker's new plant in San Luis Potosi, Mexico.

To be served by Kansas City Southern de Mexico (KCSM), the more than $1 billion plant is designed to produce up to 175,000 vehicles annually. The facility will be used to produce the BMW 3 Series Sedan, the company's most successful model series, BMW Group officials said in a press release.

By This email address is being protected from spambots. You need JavaScript enabled to view it., Editor

Progressive Railroading and RailTrends® have named Kansas City Southern President and Chief Executive Officer Patrick Ottensmeyer the 2019 recipient of the Railroad Innovator Award, which recognizes an individual’s outstanding achievement in the rail industry. KCS’s president since 2015 and CEO since 2016, Ottensmeyer has helmed the railroad during a pivotal stretch in its history.

Last month, two western (well, west of the Mississippi) railroads reported above-consensus first-quarter earnings: Kansas City Southern, which grew year over year (YOY) by 18 percent (adjusted, versus Street estimates of around 10 percent); and Union Pacific Railroad, in its weather-dominated quarter, by 15 percent YOY (versus around 12 percent). KCS lowered its operating ratio by 160 basis points (bps) to (adjusted) 64.2, and UP lowered its OR by a point — having absorbed a 160bps weather impact — to 63.6. It was also noted that “at Union Pacific, we do not include real estate sales in our OR.” Zing! But more than the results — it was the differing tones and tenors of the earnings' webcasts that struck me.

Kansas City Southern has reorganized its leadership in charge of the chemical, petroleum, industrial and consumer commodity groups, the Class I announced today.

KCS has appointed Ginger Adamiak vice president of energy and chemical products, adding chemical and petroleum in the United States and Mexico to her responsibilities. She previously served as VP energy, industrial development and innovation.

Kansas City Southern today reported record first-quarter revenue of $675 million, up 6 percent from the prior year on a 1 percent decline in volume.

KCS attributed an overall decline in carload volumes primarily to service interruptions at Lazaro Cardenas in Mexico that were caused by teacher protests, company officials said in a press release.

Today, Kansas City Southern reported record fourth-quarter revenue of $694 million, up 5 percent compared with the total in fourth-quarter 2017.

The Class I also registered record adjusted operating income of $248 million, up 4 percent, and record adjusted earnings per share of $1.56, up 13 percent  year over year. In addition, KCS’ operating ratio improved 0.9 points to 63.1, although the adjusted ratio inched up 0.3 points to 64.3.

Kansas City Southern yesterday announced the retirement of W. James Wochner as senior vice president and chief legal officer, effective March 31, 2019.

In addition, Adam Godderz will be promoted from associate general counsel and corporate secretary to general counsel and corporate secretary for KCS and the Kansas City Southern Railway Co. on Jan. 1, 2019, company officials said in a press release.

Kansas City Southern's 18th annual Holiday Express will distribute a total of $171,756 in gift cards to The Salvation Army at stops along its route starting Nov. 21.

The holiday train will visit 22 communities on 27 dates, starting in Shreveport, Louisiana, and wrapping up Dec. 18 in Kansas City, Missouri. Other stops in other states include Mississippi, Texas, Arkansas, Oklahoma, Kansas and Illinois. A complete schedule is available on the KCS website.

Kansas City Southern today reported record revenue of $699 million for the third quarter, a 6 percent increase over the same period in 2017.

Third-quarter net income rose to $174 million, or $1.70 per diluted share, from $129 million, or $1.23 per diluted share, a year ago.