(Reuters circulated the following article on February 2.)
CHICAGO — Railroad operator Kansas City Southern on Thursday said its quarterly net loss nearly tripled, hurt by the effects of hurricanes Katrina and Rita, and its shares fell 2.4 percent.
The net loss for the fourth quarter totaled $4.1 million, or 5 cents, compared with a net loss of $1.4 million, or 2 cents a share, a year earlier.
The Kansas City, Missouri-based company said the two hurricanes reduced operating income by $12.8 million. Operating income for the quarter was $46.6 million, compared with $27.4 million a year earlier.
“The hurricanes had significant impacts on both revenues and expenses in the quarter,” Chief Executive Officer Michael Haverty said in a statement.
Katrina resulted in the rerouting of some connecting rail traffic away from the Gulf region, leading to congestion along parts of the railroad’s system, as well as disrupting locomotive and freight car positioning and availability.
“Hurricane Rita had an even greater impact on revenues than Katrina,” Haverty said.
Twenty chemical plants and refineries were closed for varying periods in the quarter and virtually all of the Gulf Coast plants served by Kansas City Southern operated at less than full capacity throughout the quarter.
Consolidated revenue rose to $388.2 million for the quarter, compared with $174.6 million in the same period in 2004.
Shares of Kansas City Southern fell 66 cents to $24.73 in early trade on the New York Stock Exchange.