(The Associated Press circulated the following article on October 26.)
KANSAS CITY, Mo. — Railroad company Kansas City Southern Industries Inc. said Wednesday it will record a $134.7 million benefit to its third quarter because of a tax settlement it reached last month with the Mexican government over its acquisition of that country’s largest railroad.
Kansas City Southern also said its quarterly income will take a $45.6 million hit from hurricane-related disruptions and to prepare for an increase in employee injury claims.
The company plans to release third quarter figures on Nov. 2.
In September, the company reached an agreement with Mexican officials over a value-added tax related to the company’s purchase of Grupo TFM, the country’s largest railroad. The settlement cleared the way for Kansas City Southern to buy the last remaining shares of TFM.
The company also said the cleanup costs and customer disruptions along the Gulf Coast caused by hurricanes Katrina and Rita would cut revenue by $7.8 million.
Kansas City Southern also said a study of its reserves to pay employee injury claims showed that the number of claims will increase, requiring an additional $37.8 million.
Shares of Kansas City Southern were up 13 cents to $22.55 in morning trading on the New York Stock Exchange. The stock has traded in a 52-week range of $16.00 to $24.03.