Kansas City Southern Q3 misses guidance

Source: Supply Chain Digital

Date :10/28/2008 9:48:17 AM

Railroad operator Kansas City Southern reported a 17 percent increase in quarterly profit, but missed Wall Street expectations due to the impact of hurricanes Gustav and Ike.

For the three months ended September 30, net income rose to US$48.9 million, or 52 cents a share after paying preferred dividends, compared to US$41.8 million, or 48 cents a share, a year earlier.

Revenue grew nearly 11 percent to US$491.5 million from US$444.1 million a year earlier, as increased revenue from transporting coal, metals and scrap and chemicals offset a 13.4 percent drop in automotive shipments, attributed to the soft economy and lower vehicle demand.

Analysts' average estimates for adjusted profit is 60 cents per share on revenue of US$500.9 million, according to a Thomson Reuters poll.

Excluding hurricane-related costs of seven cents per share, the company would have earned 59 cents during the quarter.

Operating expenses jumped 10 percent to US$380.5 million, mainly due to a 35 percent rise in fuel costs year-over-year. The dollar's strengthening against the peso also trimmed US$1.9 million from quarterly profit, Kansas City said.