VAT settlement boosts Kansas City Southern profits

VAT settlement boosts Kansas City Southern profits    Kansas City Southern (KCS) said a value-added tax settlement helped boost its third quarter net income to $112.7 million from $11.1 million in the same period last year.
   The company received a one-time non-cash gain of $134.7 million following the Sept. 12 settlement of a long running dispute with the Mexican Government concerning the payment of a value-added tax refund to KCS subsidiary TFM.
   KCS’s posted an operating loss of $1.9 million, compared to an operating gain of $19.2 million in the third quarter 2004. KCS revenues soared 135 percent to $384.6 million from $163.2 million.
   KCS said its traffic volumes increased 83.9 percent to 489,693 car loadings in the third quarter.
   For the year to date, KCS’s net income jumped 229 percent to $77.4 million, compared to the $23.7 million posted in the same period last year. Operating income declined 74 percent to $14.5 million, from $56.1 million after nine months 2004. KCS’s revenues increased 107 percent to $963.9 million from $464.9 million.