(The Associated Press circulated the following story on March 2.)
KANSAS CITY, Mo. — Railroad company Kansas City Southern Industries Inc. on Thursday reported a larger fourth-quarter loss, which the company blamed on hurricane-related disruptions along the Gulf Coast and integrating its new Mexican subsidiary.
For the three months ended Dec. 31, the company said it lost $4.1 million, or 5 cents per share, compared with $1.4 million, or 2 cents per share, during the same period a year ago.
Quarterly revenues more than doubled to $388.2 million from $174.6 million during the year-ago quarter, largely because the company added Texas Mexican Railway Co. and Kansas City Southern de Mexico, which was formerly named Transportacion Ferroviaria Mexicana.
Analysts surveyed by Thomson Financial expected quarterly earnings of 7 cents per share on revenues of $386.2 million.
For the year, Kansas City Southern reported earnings of $84.9 million, or $1.03 per share, on revenues of $1.35 billion. By comparison, the company reported profits of $15.7 million, or 25 cents per share, on revenue of $639.5 million during 2004.
Michael Haverty, the company’s chairman, president and chief executive officer, said hurricanes Katrina and Rita cost the company $9.8 million during the quarter and $14 million since August. Haverty said the hurricanes damaged or closed some rail lines near the Gulf and caused disruptions among chemical companies, refineries and other key customers in the area.
Haverty said most the company’s customers are back up and running and rail lines are open. He also said the company would continue linking its domestic lines with those of its Mexican affiliates, which were acquired last summer.
“During 2006, investors should expect to see KCS make tangible progress in reducing operating costs, enhancing main line and key terminal infrastructure and capacity, and inaugurating expedited long-haul service between Mexico and the U.S.,” he said in a prepared statement, referring to plans to make Kansas City an “inland port” for shipments coming to Pacific ports in Mexico.
Kansas City Southern shares closed down 79 cents at $24.60 in trading Thursday on the New York Stock Exchange, near the high end of its 52-week range of $17.77 to $26.23.