Kansas City Southern’s profits soar

Kansas City Southern’s profits soar Kansas City Southern (KCS), said record revenues from its primary domestic subsidiary, Kansas City Southern Railway Co., (KCSR), helped its first quarter net income soar 138 percent to $8.1 million, compared to $3.4 million in the same quarter last year.
   KCS’s first quarter operating income was $24.8 million, up 43 percent compared to $17.4 million in the same quarter 2004. KCS revenues increased 34 percent to $198.2 million, compared to $147.8 million in the year-earlier period. KCS’s net income available to common shareholders was $5.9 million up from $1.2 million.
   First quarter operating income for Kansas City Southern Railway was $29.7 million compared to $23.5 million in the same period 2004. Revenues jumped 22 percent to a record $179.3 million from $147 million.
   Mexrail Inc., and the operations of its subsidiary, Tex Mex, were consolidated under KCS control on Jan. 1 this year. Mexrail's first quarter revenues were $17.3 million compared to $13.8 million for the first quarter of 2004, when it was a wholly owned subsidiary of TFM.
   “Going forward in 2005 there will be a heightened emphasis on the control of operating expenses, which increased by $26.1 million quarter-over-quarter. Higher fuel costs accounted for approximately 35 percent of the increase,” said Michael R. Haverty, KCS’s chairman, president and chief executive officer.
   On April 1, KCS completed the acquisition of Grupo TFM. Beginning in the second quarter of 2005, the financial statements of Grupo TFM will be fully consolidated with the financial statements of KCS.
   Kansas City Southern’s stock dropped 3.24 percent at $18.82 at close on the New York Stock Exchange on Tuesday evening.