(Source: Kansas City Southern press release (PDF), July 21, 2017)
KANSAS CITY, Mo. — Kansas City Southern (KCS) reported record second quarter 2017 revenues of $656 million, an increase of 15% from second quarter 2016. Overall, carload volumes increased 6% compared to second quarter 2016.
Second quarter 2017 highlights:
• Record second quarter revenues of $656 million, an increase of 15% from second quarter 2016 on a 6% increase in carloads
• All-time record quarterly operating income of $239 million, an increase of 9% from second quarter 2016
• Operating ratio of 63.5%, compared with 61.3% in second quarter 2016
• Record second quarter diluted earnings per share of $1.27, an increase of 14% compared to second quarter 2016. Adjusted diluted earnings per share of $1.33, an increase of 9% compared to second quarter 2016.
Operating expenses in the second quarter were $417 million, 20% higher than 2016. In the second quarter of 2016, KCS determined it could utilize a Mexican fuel excise tax credit, and recognized a year-to-date benefit, including $17 million for the first quarter of 2016.
Operating income for the second quarter of 2017 was $239 million, an increase of 9% from the second quarter 2016 and an all-time quarterly record. KCS reported a second quarter operating ratio of 63.5%, a 2.2 point increase from second quarter 2016. Reported net income in the second quarter of 2017 totaled $135 million, or $1.27 per diluted share, compared with $121 million, or $1.11 per diluted share, in the second quarter of 2016. Excluding the impacts of foreign exchange rate fluctuations, adjusted diluted earnings per share for second quarter 2017 was $1.33, compared to $1.22 in second quarter 2016.
“We are pleased to report record second quarter revenues and earnings per share, as well as an all-time record quarterly operating income.” stated Kansas City Southern’s President and Chief Executive Officer Patrick J. Ottensmeyer. “All three milestones highlight the overall strength of our second quarter 2017 results.
“Carloads were up in four out of six commodity groups, driving strong second quarter revenue growth of 15%. Our revenue performance featured strength in Energy, Automotive and Chemicals & Petroleum, as higher commodity prices, Mexican automotive production and the emergence of Mexican energy reform supported growth.
“Looking forward, the investments that we have made in our network and our ability to improve operational performance in a strong demand environment position our Company for continued growth.”