Kansas City Southern (KCS) (NYSE:KSU) reported record third quarter 2013 revenues of $622 million. Overall, carload volumes were 3% higher than in third quarter 2012.
Third quarter revenue growth compared to 2012 was led by a 17% increase in Intermodal. Revenues from Industrial & Consumer, Agriculture & Minerals and Automotive grew by 7%. Revenues from Energy and Chemicals & Petroleum grew by 6% and 3%, respectively, over 2012.
Operating expenses for the third quarter were $421 million, 6% higher than the corresponding 2012 period. Operating income for the third quarter of 2013 was $200 million, 11% higher than 2012 operating income. KCS reported a third quarter 2013 operating ratio of 67.8%, a 0.9 point improvement over the 2012 operating ratio.
Reported net income in the third quarter of 2013 totaled $119 million, or $1.07 per diluted share, compared with $91 million, or $0.82 per diluted share, in the third quarter of 2012. Excluding the impacts of debt retirement costs and foreign exchange rate fluctuations, adjusted diluted earnings per share for third quarter 2013 was $1.10 compared with $0.95 a year ago.
“Kansas City Southern achieved record revenues and carloads as a result of solid, sustainable growth opportunities and strong execution by our team,” stated President and Chief Executive Officer David L. Starling. “This performance demonstrates KCS' ability to absorb the impacts of a challenging economic environment while consistently delivering strong top-line and bottom-line results.
“The fact that KCS delivered revenue growth in all of its business units speaks to the strength and diversity of this franchise. In addition to the many exciting growth opportunities that we see on the horizon from Intermodal, Auto and Energy, KCS’ core carload franchise continues to deliver solid revenue performance and contribution to our overall growth in earnings. Particularly exciting is the fact that our cross-border revenue grew by 16% in the quarter. In addition to continued strength in cross-border intermodal, cross-border revenue also benefited from strength in steel shipments and an early rebound in export grain.