(Kansas City Southern issued the following news release on March 30.)
KANSAS CITY, Mo. — Kansas City Southern filed its Annual Report on Form 10-K with the Securities and Exchange Commission (SEC), and released its final earnings for the year ended December 31, 2003.
On January 29, 2004, KCS released its financial earnings results for 2003, which included estimated equity earnings from Grupo Transportacion Ferroviaria Mexicana, S.A. de C.V. (Grupo TFM). The 10-K filing today reflects an increase in net income to $12.2 million from $11.2 million reported earlier, and a corresponding $0.02 increase in 2003 annual earnings per share to $0.10 from $0.08. These adjustments in earnings primarily resulted from additional U.S. GAAP deferred tax adjustments at Grupo TFM.
Attached to this release is KCS’s revised Consolidated Statement of Income for 2003. Also attached are further details of Grupo TFM’s U.S. GAAP earnings, and a reconciliation of these earnings to equity earnings reported by KCS. The Company believes the additional information provides the investor with a better understanding of those components of Grupo TFM’s earnings and how they impact KCS’s net income.
In a separate matter, KCS announced it intends to seek renewed authority from the Mexican Competition Commission (FCC) for the proposed NAFTA Rail transaction. The FCC granted that authority on June 19, 2003, and the authority was previously extended for 180 days by the Executive Secretary of the FCC. As a procedural matter, the Executive Secretary of the FCC declined to provide an additional extension, consistent with past practice.
KCS is continuing to review its alternatives in light of the recent decision by the AAA International Centre for Dispute Resolution that the Acquisition Agreement remains valid and in effect. KCS remains committed to completing the acquisition in accordance with the terms of the Acquisition Agreement.
KCS is comprised of, among others, The Kansas City Southern Railway Company, and equity investments in Grupo TFM, Southern Capital Corporation, and Panama Canal Railway Company.