(Reuters circulated the following story by Nick Carey on July 30, 2009.)
CHICAGO — U.S. regional railroad Kansas City Southern (KSU.N: Quote, Profile, Research) on Thursday reported lower-than-expected net income as falling freight volumes and fuel surcharges pushed revenue down nearly 30 percent, but said business levels in the United States and Mexico appear to have stabilized.
The Kansas City-based railroad said second-quarter net income fell more than 86 percent to $6.7 million or 7 cents a share, from $50.5 million or 56 cents a share a year earlier.
Analysts had on average expected earnings per share for the quarter of 8 cents, according to Reuters Estimates.
Revenue fell to $341.3 from $486.2 million. Analysts had expected revenue of $357.9 million.
The railroad said lower fuel prices had resulted in a 72 percent drop in fuel surcharges.