(Bloomberg News circulated the following article on March 14.)
KANSAS CITY — Kansas City Southern, the fifth- largest U.S. railroad, has forecast that revenue will rise 10 percent to 14 percent annually during the next five years as it adds new business.
Chief executive officer Michael Haverty made the comment to analysts and investors at a meeting today at the company’s Kansas City headquarters. Company executives said they expected more than half of the increase to come from new business, especially from shipments by a rail-truck combination.
The revenue growth is “a stretch goal, one I believe is achievable,” executive vice president Dan Avramovich said.
Kansas City Southern’s forecast follows a 23 percent gain in revenue last year to $1.66 billion, led by coal and chemicals. The company in 2005 acquired a majority of a Mexican railroad that links Mexico City to the U.S. through Laredo, Texas, and plans to increase track investment and traffic in Mexico.
The company’s shares fell 19 cents to $33.36 in midday trading. They have risen 45 percent in the past year.