Kansas City Southern reported fourth-quarter net income of $114 million, or $1.03 per diluted share, up 12% from $93 million, or 83 cents per diluted share, in the fourth quarter of 2012, based on record fourth-quarter revenue of $616 million.
KCS, making its announcement Friday, Jan. 24, 2014, noted its operating ratio for the quarter was 68.1%, "a 1.4 point improvement from fourth quarter 2012." Carload volumes rose 2%, the Kansas City, Mo.-based company said.
Fourth-quarter revenue growth was led by a 30% increase in KCS's Agriculture & Minerals segment, along with an 18% increase in Intermodal. Chemical & Petroleum revenue grew 2%, while Energy revenue declined by 17% compared to the prior year, primarily due to a decline in utility coal shipments.
For the full year of 2013, revenue was a record $2.4 billion, up 6% over 2012. Full-year operating income was $739 million. Excluding one-time benefits from the elimination of a net deferred liability in 2012, full-year 2013 operating income increased 10% over prior year's adjusted operating income. KCS's operating ratio for the year was 68.8% compared with the adjusted operating ratio of 69.9% in 2012, a 1.1 point improvement, the railroad said.
"The year 2013 proved to be another very good year for Kansas City Southern," stated President and CEO David L. Starling. "While some shifts in market conditions impacted volumes in our Agriculture & Minerals and Energy commodity groups, 2013 marks the fourth consecutive year KCS has recorded a double-digit percentage increase in its adjusted diluted earnings per share.
"KCS met its stated target of mid-single digit year-over-year revenue growth, coming in 6% higher than 2012. Also, KCS achieved a record operating ratio, improving by 1.1 points over the prior year's adjusted operating ratio," Starling added. "For 2013, the company reported adjusted diluted earnings per share of $3.98, a 12% improvement over prior year."