Kansas City Southern returns to black in 2nd quarter
Kansas City Southern Wednesday reported second quarter net income of $19.2 million, compared to a net loss of $27.3 million in the same quarter 2005.
The company’s second quarter 2005 operating expenses included a non-cash, pre-tax charge of $35.6 million related to the accounting for deferred profit sharing in Mexico, and $15.8 million of charges related to the acquisition of TFM S.A. de C.V. (now called Kansas City Southern de Mexico).
In the latest quarter, KCS posted an operating income of $77.5 million, compared to an operating loss of $8.3 million in the second quarter 2005. Revenue improved 8.4 percent to $413.1 million from $381.1 million.
KCS said its quarterly traffic volumes declined 4.7 percent to 479,408 car loadings.
“Stronger second quarter earnings and improved operations demonstrate the continued progress KCS is making toward integrating its U.S. and Mexican rail operations,” said Michael R. Haverty, chairman and chief executive officer. “We expect our financial performance to continue to improve throughout the second half of 2006.”
For the year to date, KCS posted net income of $27.2 million, compared to a net loss of $21.4 million in the first half last year. Operating income soared 741 percent to $138.8 million, from $16.5 million after six months 2005. KCS’s revenues increased 38.4 percent to $801.5 million from $579.3 million.