(Source: Kansas City Southern press release (PDF), January 20, 2017)
KANSAS CITY, Mo. — Kansas City, Mo., January 20, 2017. Kansas City Southern (KCS) reported fourth quarter 2016 revenues of $599 million, unchanged from fourth quarter 2015. Overall, carload volumes were unchanged compared to the prior year. Excluding the estimated impact of Mexican peso depreciation, revenues would have increased by 3% compared to the fourth quarter of 2015.
Fourth Quarter 2016 Highlights:
•Revenue of $599 million, unchanged from prior year
• Carload volumes of 555 thousand, unchanged from prior year
• Operating income of $211 million, a decrease of 4% from fourth quarter 2015
• Operating ratio of 64.8%, compared with 63.4% in fourth quarter 2015
• Diluted earnings per share of $1.21, a decrease of 5% compared to fourth quarter 2015. Adjusted diluted earnings per share of $1.12, a decrease of 9% compared to fourth quarter 2015
Operating expenses in the fourth quarter were $388 million, an increase of 2% from 2015. Excluding the estimated impact of Mexican peso depreciation, operating expenses increased 7% compared to the fourth quarter of 2015.
Operating income for the fourth quarter of 2016 was $211 million, a decrease of 4% from the fourth quarter 2015. KCS reported a fourth quarter operating ratio of 64.8%, a 1.4 point increase from fourth quarter 2015. Reported net income in the fourth quarter of 2016 totaled $130 million, or $1.21 per diluted share, compared with $140 million, or $1.28 per diluted share, in the fourth quarter of 2015. Excluding the impacts of foreign exchange fluctuations and 2015 debt retirement and exchange costs, adjusted diluted earnings per share for fourth quarter 2016 was $1.12, compared to $1.23 in fourth quarter 2015.
For the full year of 2016, revenue was $2.3 billion, down 3% from 2015. Carloads for 2016 were 2.17 million, a decrease of 2% from the prior year. Full year 2016 operating income was $819 million, an increase of 2% from the prior year. The Company’s 2016 operating ratio was 64.9%, a 1.9 point improvement from the prior year’s reported operating ratio and a 1.5 point improvement from the prior year’s adjusted operating ratio.
Reported net income in 2016 totaled $480 million or $4.43 per diluted share, compared with $485 million, or $4.40 per diluted share, in 2015. Excluding the impacts of foreign exchange fluctuations and 2015 lease termination and debt retirement and exchange costs, adjusted diluted earnings per share for 2016 was $4.48 compared to $4.49 in 2015.
“KCS’ ability to react swiftly and efficiently was proven throughout 2016, as our network faced challenging operational interruptions throughout the year. In addition, volatility in key commodities such as energy, consumer, and intermodal markets created uncertainty during 2016. Despite these conditions, KCS’ achieved a full-year operating ratio of 64.9%, a 1.5 point improvement versus 2015 adjusted.” stated Kansas City Southern’s President and Chief Executive Officer Patrick J. Ottensmeyer.
“Looking ahead to 2017, the Company is aware of both economic and political uncertainty. However, we continue to emphasize our commitment to growth and we are well positioned to take full advantage of the significant new business opportunities that lie ahead of us.”
Please see link above for additional financial reporting.