KCSI SHOWS 61% SLIDE IN 3RD-QUARTER NET INCOME
Kansas City Southern Industries Inc., reported third quarter 2001 net income of $9 million, 61 percent lower than the same period of the previous year.
KCSI’s third quarter 2001 revenues totaled $144.6 million slightly higher than the third quarter of 2000. Income from continuing operations was $9.0 million, 246 percent higher than the same quarter of 2000.
Net coal tonnage increased 8 percent to increased deliveries at certain utility plants with depleted stockpiles. Revenue increases also occurred for certain lumber products, domestic grain, plastics, certain chemical products and military shipments.
For the year to date, the company reported net income of $19.6 million, down 95 percent. Total revenue dropped 1 percent to $431.8 million for the same period. Operating income dropped 31 percent to $35 million.
“Despite the economic turmoil currently facing our country, our domestic revenues and cost structure showed signs of improvement during the third quarter,” said Michael R. Haverty, chairman, president and chief executive officer. “Overall, however, most commodities have remained weak in the midst of the slumping economy and we expect fourth quarter revenues to remain relatively flat compared to the third quarter of 2001. A significant improvement in our various commodity sectors is not expected to occur until an economic recovery begins.
KCSI comprises the Kansas City Southern Railway Co., Gateway Western Railway Co. and equity investments in Grupo TFM, Mexrail Inc., Southern Capital Corp. and Panama Canal Railway Co.