Kansas City Southern Q3 revenues $747.7 millionChristian Fernsby ▼ | October 18, 2019
Kansas City Southern reported record revenues of $747.7 million, an increase of 7% from third quarter 2018.
Kansas City Southern Overall, carload volumes were flat compared to prior year
Topics: Kansas City Southern
Revenue growth for the third quarter of 2019 was led by a 21% increase in Chemicals and Petroleum due primarily to increased refined fuel products and liquid petroleum gas shipments to Mexico.
Agriculture and Minerals revenues grew 15%, driven primarily by improved cycle times.
Industrial and Consumer Products and Intermodal revenues also increased by 2% and 1%, respectively.
These increases were partially offset by revenue declines in the remaining two commodity groups.
Energy revenues declined by 11%, as increased Utility Coal shipments were more than offset by declines in Frac Sand and Crude Oil; Automotive revenues declined by 2%.
In the third quarter of 2019, reported operating expenses were $465.7 million.
Excluding restructuring charges related to PSR initiatives and a gain on insurance recoveries related to hurricane damage a year ago, adjusted operating expenses were $453.7 million, 2% higher than 2018.
Adjusted operating income was $294.0 million, 15% higher than a year ago.
KCS reported an adjusted third quarter operating ratio of 60.7%, a 2.70 point improvement over third quarter 2018.
Reported net income in the third quarter of 2019 was $180.6 million, or $1.81 per diluted share, compared with $174.0 million, or $1.70 per diluted share in the third quarter of 2018.
As presented in the following reconciliations, adjusted diluted earnings per share was $1.94, 24% higher than a year ago. ■