Kansas City Southern Touts Precision Scheduled Railroading Benefits
April 19, 2019
Record first quarter revenues of $675 million, an increase of 6% from
prior year on a 1% volume decline
Operating income of $160 million. Record first quarter adjusted
operating income of $242 million, excluding restructuring charges
related to Precision Scheduled Railroading (“PSR”) initiatives, and
including the Mexican fuel excise tax credit
Reported operating ratio of 76.2%. Adjusted operating ratio of 64.2%,
compared to 65.8% in the prior year
Reported diluted earnings per share of $1.02. Adjusted diluted earnings
per share of $1.54, 18% higher than a year ago
City Southern reported record first quarter revenues of $675 million, an
increase of 6% from first quarter 2018. Overall, carload volumes
declined by 1% compared to prior year, driven primarily by service
interruption at Lázaro Cárdenas due to teacher protests.
Revenues for the first quarter of 2019 increased in four commodity
groups, led by a 21% increase in Chemicals and Petroleum due to refined
product shipments to Mexico. Agriculture and Minerals grew by 8%, driven
by improved network cycle times. Energy and Industrial and Consumer
Products also grew 5% and 2%, respectively. These increases were
partially offset by revenue declines in Automotive and Intermodal of 4%
and 12%, respectively, due to auto plant shutdowns and teacher protests.
In the first quarter of 2019, reported operating expenses were $515
million. Excluding restructuring charges related to PSR initiatives, and
including the Mexican fuel excise tax credit, adjusted operating
expenses were $433 million, 3% higher than 2018. Adjusted operating
income was $242 million, 10% higher than a year ago. KCS reported an
adjusted first quarter operating ratio of 64.2%, a 1.6 point improvement
over first quarter 2018.
Reported net income in the first quarter of 2019 was $103 million, or
$1.02 per diluted share, compared with $145 million, or $1.40 per
diluted share in the first quarter of 2018. As presented in the
following reconciliations, adjusted diluted earnings per share was
$1.54, 18% higher than a year ago.
are pleased to announce a strong start to the year with solid revenue
growth and improved operational performance,” stated Kansas City
Southern’s President and Chief Executive Officer Patrick J. Ottensmeyer.
“Although we are still in the early stages of implementation, KCS’
transition to a precision-scheduled network is already producing
improved velocity and dwell, which is driving improved customer service,
labor and asset utilization as well as other efficiencies.
“Our PSR initiatives support volume and revenue growth, capital
efficiency and an improved cost profile. They equally support improved
customer service, capacity and network resiliency. We have confidence
that this transition will continue to benefit all KCS stakeholders,
including customers and shareholders.”