KANSAS CITY, Mo. — Kansas City Southern expects third- quarter earnings to be lower than current consensus estimates, citing higher operating costs caused by congestion directly related to the implementation of a new computer operating system as well as temporary diversion of some traffic, according to Dow Jones Newswires.
Analysts surveyed by Thomson First Call projected third-quarter earnings of 18 cents a share.
In a press release Friday, the transportation holding company with railroad investments said it experienced yard congestion with the switch-over to its new management control system resulting in higher-than-normal freight car volumes from late July through August. The congestion and loss of efficiency resulted in higher car hire, salary, overtime and equipment expenses during the quarter.
There was also some short-term diversion of traffic from the MCS-related congestion.
Kansas City Southern’s operating costs should be closer to normal levels in the fourth quarter, the company said.
In the year-ago third quarter, the company posted income from continuing operations of 15 cents a share, on revenue of $144.6 million.
Shares of Kansas City Southern were unavailable for late trading Friday. The company’s shares closed the regular session at $13.65, up 28 cents, or 2.1%.