(The Associated Press issued the following on April 24.)
KANSAS CITY, Mo. — Railroad operator Kansas City Southern said Thursday its first-quarter earnings nearly doubled on strong pricing, higher shipment volumes and operational improvements.
The company earned $32.9 million, or 39 cents per share, compared with $17 million, or 21 cents per share, in the first quarter of last year.
Revenue rose 10 percent to $450.6 million, from $411.3 million a year earlier.
Analysts expected a profit of 34 cents per share on revenue of $435 million, according to a poll by Thomson Financial.
The company said carload growth was led by automotive shipments, which increased 19 percent. Agriculture and minerals shipments grew 16 percent, and chemical and petroleum product carloads rose 16 percent.
Strong carload growth, combined with improved train efficiency, offset significantly higher fuel expenses and the effects of bad weather, the railroad said.
“The combination of new business opportunities, strong pricing environment, and continuous operating improvements positions us well for the remainder of the year,” Chairman and Chief Executive Michael Haverty said. “Going forward, Kansas City Southern has the momentum needed to attain its 2008 operating and financial targets even within what is projected to be a difficult economic environment.”