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Kansas City Southern Reports First Quarter Revenue Growth of 12% on a 7% Increase in Volumes; Earnings per Share $0.58

Dépèche transmise le 21 avril 2011 par Business Wire

Kansas City Southern Reports First Quarter Revenue Growth of 12% on a 7% Increase in Volumes; Earnings per Share $0.58

Kansas City Southern Reports First Quarter Revenue Growth of 12% on a 7% Increase in Volumes; Earnings per Share $0.58

KANSAS CITY, Mo.--(BUSINESS WIRE)--Kansas City Southern (KCS) (NYSE:KSU) reported first quarter 2011 revenues of $489 million, a 12% increase compared to the corresponding 2010 period. Overall, carload volumes were 7% higher than in first quarter 2010.

“KCS’s first quarter results came in on track with our internal expectations and consistent with the volume and revenue guidance we provided for full year 2011”

The improvement in revenue was led by Automotive with a 43% increase in first quarter 2011 as compared to the same period a year ago. Intermodal revenues also showed strength increasing 27% over the same time period. Other revenue improvements were 19% for Industrial and Consumer Products; 9% for Coal; and 8% for Chemical and Petroleum. Agriculture and Minerals reported a decline of 1%, attributable to a decline in cross border traffic into Mexico as availability of crops from a strong Mexican harvest has been sufficient to meet the local demand.

Operating expenses for the first quarter of $361 million were $33 million higher than the corresponding 2010 period, primarily due to a 31% increase in fuel. Operating income for the first quarter of 2011 was $128 million, which was 18% higher than 2010. KCS’s record first quarter operating ratio of 73.8% compared favorably with the 75.2% operating ratio reported for the corresponding 2010 period.

Net income available to common stockholders in the first quarter totaled $63 million, or $0.58 per diluted share, compared to $33 million, or $0.34 per diluted share in first quarter 2010.

“KCS’s first quarter results came in on track with our internal expectations and consistent with the volume and revenue guidance we provided for full year 2011,” stated David L. Starling, president and chief executive officer. “In addition, our first quarter operating ratio improvement of 1.4 points is in line with the 1 to 1.5 point improvement guidance we gave for 2011; this despite higher fuel expense that we were unable to fully recover during the first quarter that cost approximately one point on the operating ratio.

“Business levels continue to be generally strong. We are especially pleased with the expansive growth in our intermodal business highlighted by 44% volume growth out of Lázaro Cárdenas and a 70% increase in our cross-border intermodal traffic. It is apparent that shippers are embracing the service we are providing over these corridors.

“KCS continues to perform at historically high levels of profitability. We believe our substantial market opportunities and determined efforts to control expenses should allow us to maintain our momentum through the year.”

Headquartered in Kansas City, MO, Kansas City Southern is a transportation holding company that has railroad investments in the U.S., Mexico and Panama. Its primary U.S. holding is The Kansas City Southern Railway Company, serving the central and south central U.S. Its international holdings include Kansas City Southern de México, S.A. de C.V., serving northeastern and central Mexico and the port cities of Lázaro Cárdenas, Tampico and Veracruz, and a 50 percent interest in Panama Canal Railway Company, providing ocean-to-ocean freight and passenger service along the Panama Canal. Kansas City Southern's North American rail holdings and strategic alliances are primary components of a NAFTA Railway system, linking the commercial and industrial centers of the U.S., Mexico and Canada.

This press release may include statements concerning potential future events involving KCS and its subsidiaries, which could materially differ from the events that actually occur. The differences could be caused by a number of factors including those factors identified in the "Risk Factors" and the "Cautionary Information" sections of KCS's Form 10-K for the most recently ended fiscal year, filed by KCS with the Securities and Exchange Commission (SEC) (Commission file no. 1-04717). KCS will not update any forward-looking statements in this press release to reflect future events or developments.

 
Kansas City Southern
Statements of Income
(In millions, except share and per share amounts)
(Unaudited)
          Three Months
Ended March 31,
2011       2010
Revenues $ 488.6   $ 436.3  
 
Operating expenses:
Compensation and benefits 100.4 90.7
Purchased services 48.1 44.9
Fuel 79.5 60.8
Equipment costs 41.4 38.7
Depreciation and amortization 45.7 45.8
Materials and other   45.7     47.2  
 
Total operating expenses  

360.8

    328.1  
 
Operating income 127.8 108.2
 
Equity in net earnings of unconsolidated affiliates 3.6 6.4
Interest expense (33.1 ) (44.4 )
Debt retirement costs - (14.9 )
Foreign exchange gain (loss) (0.1 ) 2.6
Other income, net   1.7     0.5  
 
Income before income taxes 99.9 58.4
Income tax expense   35.8     24.2  
 
Net income 64.1 34.2
Less: Net income (loss) attributable to noncontrolling interest   0.1     (1.1 )
 
Net income attributable to Kansas City Southern and subsidiaries 64.0 35.3
Preferred stock dividends   1.4     2.7  
 
Net income available to common stockholders $ 62.6   $ 32.6  
 
Earnings per share:
Basic earnings per share $ 0.60   $ 0.34  
 
Diluted earnings per share $ 0.58   $ 0.34  
 
Average shares outstanding (in thousands):
Basic 104,269 95,890
Potentially dilutive common shares   5,482     568  
Diluted   109,751     96,458  

Business Wire

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Kansas City Southern
Revenues & Carloads/Units By Commodity – First Quarter 2011 and 2010
 
          Revenues            

Carloads and
Units

            Revenue per      
(in millions) (in thousands) Carload/Unit

First Quarter

% First Quarter % First Quarter %
2011       2010 Change 2011       2010 Change 2011       2010 Change
 
Chemical & Petroleum
Agri Chemicals $ 6.0 $ 6.2 (3 %) 3.9 4.1 (5 %) $ 1,538 $ 1,512 2 %
Other Chemicals 40.3 36.7 10 % 24.8 24.0 3 % 1,625 1,529 6 %
Petroleum 28.0 25.2 11 % 18.7 18.9 (1 %) 1,497 1,333 12 %
Plastics   22.6   21.5 5 % 15.6 15.2 3 %   1,449   1,414 2 %

Total

 

96.9

  89.6 8 % 63.0 62.2 1 %   1,538   1,441 7 %
 

Industrial & Consumer Products

Forest Products 55.1 46.8 18 % 32.7 30.6 7 % 1,685 1,529 10 %
Metals & Scrap 45.2 36.3 25 % 29.0 25.0 16 % 1,559 1,452 7 %
Other   18.2   16.7 9 % 20.4 17.8 15 %   892   938 (5 %)
Total   118.5   99.8 19 % 82.1 73.4 12 %   1,443   1,360 6 %
 
Agriculture & Minerals
Grain 50.3 56.0 (10 %) 30.9 35.1 (12 %) 1,628 1,595 2 %
Food Products 34.6 32.5 6 % 17.2 17.5 (2 %) 2,012 1,857 8 %
Ores & Minerals 14.4 12.4 16 % 13.0 11.4 14 % 1,108 1,088 2 %
Stone, Clay & Glass   5.8   5.1 14 % 3.2 3.3 (3 %)   1,813   1,545 17 %
Total   105.1   106.0 (1 %) 64.3 67.3 (4 %)   1,635   1,575 4 %
 
Coal
Unit Coal 55.9 51.7 8 % 58.6 61.4 (5 %) 954 842 13 %
Other Coal   8.7   7.3 19 % 10.1 10.6 (5 %)   861   689 25 %
Total   64.6   59.0 9 % 68.7 72.0 (5 %)   940   819 15 %
 
Intermodal   54.2   42.6 27 % 175.9 150.5 17 %   308   283