Kansas City Southern on Friday, Oct. 17, 2014 reported third-quarter 2014 revenue of $678 million, up 9% from the third quarter of 2013. Carload volumes for the quarter were up 4% from the comparable quarter of a year ago, the company said. Both were at record levels, KCS said.
KCS notched adjusted diluted earnings for per share of $1.29 during the quarter, up 17% from the third quarter of 2013, on net income of $138 million, up from $119 million in 3Q2013. KCS's operating ratio in the third quarter was 66.1%, a 1.7 point improvement from the ratio of a year ago.
Revenue growth was paced a 28% increase in Automotive and a 13% increase in Industrial & Consumer Products. Intermodal (up 11%) and Agriculture & Minerals (up 8%) were also strong, but Energy revenue declined by 4%, primarily due to a decline in utility coal and frac sand shipments, KCS said.
"KCS achieved record quarterly financial results as a result of the continued strength and diversity of our franchise," stated Kansas City Southern's President and CEO David L. Starling. "An operating ratio of 66.1% was attained primarily due to volume growth, especially in the automotive and grain commodity groups, as well as system efficiency and cost controls.
"We are optimistic about the remainder of the year and reaffirm our updated 2014 goals outlined to investors in September," Starling said. "Looking ahead, we expect KCS' long-term growth to be fueled by system-wide opportunities, which position KCS very well over the next several years."