Kansas City Southern Announced Third Quarter ResultsBy Lorenzo Núñez | Fri, 10/22/2021 - 12:12
Kansas City Southern has released their third quarter results reporting revenues of US$744.0 million representing a 13 percent increase compared to 3Q20. However, overall carload volumes were down 3 percent compared to the prior year. This was due primarily to multiple commercial impacts.
The company reported that their third quarter operating expenses totaled US$492.1 million, including US$36.5 million in merger costs, from the combination between Canadian Pacific and Kansas City Southern reported MBN. Operating income totaled US$251.9 million, and the reported operating ratio was 66.1 percent. In addition, third quarter net income was US$156.5 million, or US$1.71 per diluted share.
The company´s main impacts were a combination of auto plant shutdowns driven by a global microchip shortage, service interruptions at Lazaro Cárdenas due to KCSM right-of-way blockages resulting from teachers' protests and increased regulation of refined fuel product shipments into Mexico which resulted in supply chain disruptions.
“We are encouraged that despite several commercial headwinds, our network is performing extremely well and we are delivering near record velocity and dwell. Underlying industrial demand is strong, and KCS has maintained resources to prioritize customer service as volumes return to the network. As certain supply chain disruptions are resolved and our revenue environment improves, our network will be well-positioned to handle incremental volume while continuing to provide premium service to our customers,” said Patrick J. Ottensmeyer, KCS President and CEO. “We are also very pleased to have announced our combination with Canadian Pacific, creating the first single line rail network linking the US, Mexico and Canada. This historic combination will enhance competition, create new options for customers, and support economic growth in North America."