(The Kansas City Star posted the following article by Rick Babson on its website on January 20.)
KANSAS CITY — Shares of Kansas City Southern reached a 52-week high Thursday, buoyed by Union Pacific Corp.’s strong fourth-quarter earnings.
Kansas City Southern, which reports fourth-quarter and year-end results before markets open Feb. 2, saw shares climb to $26.23 before closing at $26.17, up 63 cents, or 2.47 percent, on the New York Stock Exchange. Shares gained 78 cents, or 2.98 percent, to $26.95 in after-hours trading.
Thursday’s performance topped the previous 52-week high of $25.94 on Jan. 11. Kansas City Southern shares are trading at levels not seen since a July 2000 stock split and cash dividend payout.
Omaha, Neb.-based Union Pacific reported fourth-quarter earnings that beat analysts’ estimates by 11 cents a share. The company said fuel charges it passed on to customers, price increases and a stable network performance contributed to the earnings boost.
Union Pacific shares easily topped the previous 52-week high of $81.26 by reaching $85.12. Shares closed at $85.02, up $5.02, in heavy trading. BNSF Railway gained $3.07 to $71.90, while CSX Corp. gained $1.54 and closed at $52.36 after reaching a 52-week high of $52.55.
Railroads, often seen as reflecting the overall performance of the nation’s economy, have seen revenue grow on strong imports and domestic demand over the past few years, but inadequate capacity has remained a persistent problem.