KCS reports record 3Q 2017 operating income and operating ratio
(Source: Kansas City Southern press release (PDF), October 20, 2017)
KANSAS CITY, Mo. — Kansas City Southern (KCS) reported third quarter 2017 revenues of $657 million, representing an overall increase of 9% with year over year growth from all six business units. Carload volumes increased 3% compared to third quarter 2016.
Operating expenses in the third quarter were $423 million, 4% higher than 2016. Operating income was a third quarter record at $234 million, an increase of 17% from the third quarter 2016.
Third Quarter 2017 Highlights:
• Third quarter revenues of $657 million, an increase of 9% from third quarter 2016 on a 3% increase in carloads
• Record third quarter operating income of $234 million, representing a 17% increase from third quarter 2016
• Operating ratio of 64.4%, a third quarter record and an improvement of 2.5 points from third quarter 2016
• Third quarter diluted earnings per share of $1.23, an increase of 10% compared to third quarter 2016. Adjusted diluted earnings per share of $1.35, a third quarter record and an increase of 21% compared to third quarter 2016
KCS reported a record third quarter operating ratio of 64.4%, a 2.5 point improvement over third quarter 2016. Reported net income in the third quarter of 2017 totaled $130 million, or $1.23 per diluted share, compared with $121 million, or $1.12 per diluted share, in the third quarter of 2016. Excluding the impacts of foreign exchange rate fluctuations, adjusted diluted earnings per share for third quarter 2017 was $1.35 compared to $1.12 in third quarter 2016, representing a third quarter record.
“KCS’ third quarter financial results were strong, even with the impact of Hurricane Harvey on KCS’ U.S. Gulf Coast and cross-border traffic in August and September,” stated President and Chief Executive Officer Patrick J. Ottensmeyer. “Despite the severity of the storm and widespread flooding, we recovered quickly from the extended service outage, delivering record third quarter operating income, operating ratio and adjusted earnings per share.
“Our recovery was a testament to KCS’ operations personnel, who worked tirelessly during and after the storm to restore our network. We also want to thank our rail partners for their cooperation, as we worked together during this period to minimize the impact of the outage on our customers.”
Friday, October 20, 2017
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