Tuesday, May 30, 2023

Kansas City Southern revenue jumps 37% as freight volumes rebound By Reuters


© Reuters. FILE PHOTO: A wagon of a freight train of the Kansas City Southern (KCS) Railway Company is pictured in Toluca, Mexico October 1, 2018. REUTERS/Edgard Garrido/File Photo

(Reuters) -Kansas City Southern, which has agreed to be taken over by Canadian National Railway Co, on Friday reported a 37% jump in quarterly revenue, as a recovery from the pandemic-led downturn boosted freight volumes and fuel surcharges.

Revenue rose to $749.5 million in the second quarter, in line with the average analyst estimate of $750.08 million, according to IBES data from Refinitiv.

The smallest of the six Class 1 railroads by revenue, Kansas City’s carload volumes rose 31% in the three months ended June 30.

The company reported a net loss of $378 million, or $4.17 per share, in the quarter, compared with a profit of $110.3 million, or $1.16 per share, a year earlier.

The loss was in part due to a $700 million break-up fee it owed to Canadian Pacific (NYSE:) Railway Ltd.

Kansas City’s $33.6 billion merger with Canadian National is being scrutinized by regulatory authorities.

Adjusted operating ratio, a key profitability metric for Wall Street, was 61.4%, compared with 65.2% a year earlier.

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