press"> press" />

7061 East Pleasant Valley Road, Independence, Ohio 44131 • (216) 241-2630 / Fax: (216) 241-6516

News and Issues
User Info

Kansas City Southern reports Q2 2019 financial results

(Source: Kansas City Southern press release (PDF), July 19, 2019)

KANSAS CITY, Mo. — Kansas City Southern (KCS) reported record revenues of $714 million, an increase of 5% from second quarter 2018. Overall, carload volumes were flat compared to prior year.

Second Quarter Highlights:
• Record revenues of $714 million, an increase of 5% from prior year on flat volumes
• Operating income of $208 million. Record adjusted operating income of $259 million, excluding restructuring charges related to Precision Scheduled Railroading (“PSR”) initiatives
• Reported operating ratio of 70.9%. Adjusted operating ratio of 63.7%, compared to 64.0% in the prior year
• Reported diluted earnings per share of $1.28. Record adjusted diluted earnings per share of $1.64, 6% higher than a year ago

Revenue growth for the second quarter of 2019 was led by a 19% increase in Chemicals and Petroleum due to growth in shipments related to Mexico energy reform, and a 5% increase in Automotive. These increases were partially offset by revenue declines in the remaining four commodity groups. Energy revenues declined by 5%, as increased Utility Coal shipments were more than offset by declines in Frac Sand and Crude Oil. Industrial & Consumer Products and Agriculture & Minerals revenues each declined by 2%, and Intermodal revenues declined by 1%.

In the second quarter of 2019, reported operating expenses were $506 million. Excluding restructuring charges related to PSR initiatives, adjusted operating expenses were $455 million, 4% higher than 2018. Adjusted operating income was $259 million, 5% higher than a year ago. KCS reported an adjusted second quarter operating ratio of 63.7%, a 0.3 point improvement over second quarter 2018.

Reported net income in the second quarter of 2019 was $129 million, or $1.28 per diluted share, compared with $148 million, or $1.45 per diluted share in the second quarter of 2018. As presented in the following reconciliations, adjusted diluted earnings per share was $1.64, 6% higher than a year ago.

“The Company is handling the same volume as last year with fewer assets, fewer crewstarts and considerably less network congestion, driving an improvement in customer service, operating metrics and cost profile,” stated Kansas City Southern’s President and Chief Executive Officer Patrick J. Ottensmeyer.” This improvement in cost profile helped us absorb a 130 basis point headwind to our adjusted operating ratio from the loss of the Mexican Fuel Excise Tax credit, while still improving profitability versus prior year.

“I am extremely pleased with the commitment, enthusiasm and cross-functional teamwork that my Kansas City Southern colleagues have demonstrated in the early stages of executing Precision Scheduled Railroading principles. Together we are building a more consistent, reliable and resilient network that is positioned to deliver excellent customer service and strong operating leverage as volume and revenue growth improves.”

Please see link above for additional information.

Friday, July 19, 2019

Like us on Facebook at

Sign up for BLET News Flash Alerts

© 1997-2019 Brotherhood of Locomotive Engineers and Trainmen


Decertification Helpline
(216) 694-0240

Sign up for BLET
News Flash Alerts


Worker dies after being pinned between two tank cars Beaumont, Texas
Another round of furloughs at UP’s Bailey Yard
STB: U.S. Class Is employed fewer workers in July 2019
Trains block east-side Des Moines streets for hours, prompting accidents, outcry from nearby businesses
Taxation of lost wages awards under FELA: the Illinois appellate court applies Loos v. BNSF
Court rejects rail shippers class formation request; Senators press for rail reform
Third UP train derails in just over a month at same Spokane rail yard
UP train cars derail near downtown San Antonio
Time is nigh for overnight passenger train service between Montreal and NYC
RRB Q&A: Unemployment and sickness benefits for railroad employees
Get the latest labor news from the Teamsters

More Headlines