(The following appeared on the Kansas City Star website on October 28.)
KANSAS CITY, Mo. — Kansas City Southern said Tuesday that its third-quarter earnings were up 17 percent on increased shipments of scrap metal and coal.
The railroad company earned $48.9 million, 52 cents a share, up from $41.8 million, 48 cents a share, in the same quarter a year ago.
The results were short of Wall Street expectations, the company said, because of disruptions from Hurricanes Gustav and Ike. Kansas City Southern’s stock closed up 1.8 percent, 46 cents, at $26.10.
Chief executive Michael Haverty said in a prepared statement that shipping volume was up 1.5 percent before the hurricanes. But the storms disrupted traffic along a key rail line and closed 15 refineries and chemical factories, eventually helping reduce overall carloadings for the quarter by 0.9 percent from the third quarter of 2007.
Revenue was up 10.7 percent, to $491.5 million.
The company said it would have earned 59 cents a share if not for the effects of the hurricanes, just below the average analyst expectation of 60 cents.
Increased revenue from transporting coal, metals and scrap and chemicals offset a 13.4 percent drop in automotive shipments, the company said.
Operating expenses increased 10 percent to $380.5 million, mainly because of a 35 percent surge in fuel costs over last year.