Grupo Mexico’s transportation division — which includes Florida East Coast Railway, Ferromex, Ferrosur and Texas Pacifico — reported higher third-quarter operating income last week as revenue grew despite flat volume.
The transportation division’s operating income grew 9%, to $235 million, as revenue increased 8.9%, to $871 million. The railroads’ combined operating ratio was 72%.
Overall volume was up 0.2% based on carloads and containers, but 4.1% when measured by revenue ton-miles.
Growth for the Mexico-based conglomerate (GMEXICOB.MX) was concentrated in the automotive, agricultural, and intermodal segments. Other traffic segments including minerals, cement, chemicals, metals, energy, and industrials, saw revenue declines during the quarter.
The intermodal growth was driven by cross-border shipments as well as volume on the FEC. A reduction in new railcar deliveries and lower demand for Mexican beer in the U.S. contributed to the decline in industrial revenue.
Operating metrics for GMXT generally improved for the quarter, with train speeds up 16%, terminal dwell down 26%, and car miles per day up 24%.
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