(The Associated Press circulated the following article on November 2.)
KANSAS CITY, Mo. — Railroad company Kansas City Southern Industries Inc. on Wednesday reported a huge jump in third-quarter profits as it folded in results from its recent acquisition of the largest railroad company in Mexico.
Still, the company said results could have been even higher had it not been for disruptions caused by hurricanes Katrina and Rita on the Gulf Coast and Hurricane Emily in Central America.
The Kansas City-based company reported earnings of $110.5 million, or $1.14 per share, compared with earnings of $8.9 million, or 14 cents per share, during the same period a year ago.
Revenue for the quarter more than doubled to $384.6 million from $163.2 million during the year-ago quarter.
Analysts surveyed by Thomson Financial had predicted earnings of 1 cent per share on revenues of $365.9 million.
In September, Kansas City Southern reached an agreement with the Mexican government over a number of tax and other issues with Grupo Transportacion Ferroviaria Mexicana, the largest railroad company in the country. The agreement allowed Kansas City Southern to complete its $660 million acquisition of the railroad.
As the company reported last week, it gained a $134.7 million tax benefit from the Mexican settlement. It also took a $45.6 million hit to income from a combination of hurricane disruptions and setting aside additional money for expected increases in employees filing injury and job-related illness claims.
Kansas City Southern shares gained $1.21, or 5.5 percent, to close at $23.35 Wednesday on the New York Stock Exchange. The stock has traded in a 52-week range of $16.05 to $24.03.