(The Associated Press circulated the following article on May 3.)
KANSAS CITY — Kansas City Southern, which owns and operates railroad tracks, on Tuesday reported first-quarter profit rose despite an increase in operating expenses due to higher fuel costs.
Quarterly income, after preferred dividends, was $5.9 million, or 9 cents per share, up from $1.2 million, or 2 cents per share, last year.
Revenue rose to $198.2 million from $147.8 million, driven by the inclusion of recently acquired Mexrail Inc. and growth at its railway unit, which benefited from increased carloadings, yields, and fuel surcharges.
Expenses during the period were $149.6 million, up $26.1 million from last year. Higher fuel costs were responsible for $9.1 million of the increase. Higher traffic volume and increased headcount were the principal drivers of a $5.5 million increase in compensation and fringe benefits, the company said.
Kansas City Southern said it would attempt to lower expenses during the coming quarters.
The company’s shares fell 66 cents, or 3.4 percent, to $18.79 in afternoon trading on the New York Stock Exchange.