Kansas City Southern Reports Increase in RevenueBy Lorenzo Núñez | Tue, 07/20/2021 - 11:27
Kansas City Southern has published their 2021’s Q2 results, where the company has reported revenues of US$749.5 million, representing a 37 percent increase compared to 2Q2020. While overall, carload volumes were up 31 percent compared to last year.
According to the company´s press release, the increase of revenue is due to higher volumes, higher fuel surcharge, and the strengthening of the Mexican peso against the US dollar.
Second quarter operating expenses were US$1,181.2 million, including a US$700 million termination fee paid to Canadian Pacific. The US$700 million reimbursement from Canadian National will be recognized upon KCS shareholder vote on the merger with Canadian National. The company also reported an operating loss of US$431.7 million, as well as a net loss of US$378 million or US$4.17 dollars per diluted share and an operating ratio of 157.6 percent.
"KCS delivered strong second quarter volume growth, as our franchise benefited from unique growth drivers and the economy recovered from the COVID-19 downturn,” stated president and chief executive officer, Patrick J. Ottensmeyer. “Although we are pleased with the strong volume growth, we fell short of our own expectations for customer service.”
“Our operating team is focused on implementing structural and sustainable changes that will improve operational performance and the resiliency of our network. To that end, we have deployed additional assets and crews in support of our service recovery, setting the company up to continue delivering robust volume growth while improving customer service in the second half of 2021. During the second quarter, KCS also announced a pro-competitive merger with Canadian National, which will deliver more choices to customers through the creation of new, single line service options between the U.S., Canada and Mexico. This combination represents an exciting opportunity for KCS and CN stakeholders, and we look forward to delivering a safer, faster, cleaner and stronger railroad.”