Kansas City Southern late last month reported record fourth quarter 2013 revenues of $616 million.
Operating income for the fourth quarter of 2013 was $196 million compared with $174 million a year ago, a 13 percent increase. KCS reported a fourth quarter 2013 operating ratio of 68.1 percent, a 1.4 point improvement from fourth quarter 2012. Operating expenses in the fourth quarter were $420 million compared with $395 million in the corresponding 2012 period, a 6 percent increase.
“The year 2013 proved to be another very good year for Kansas City Southern,” President and Chief Executive Officer David L. Starling said in a statement.
Overall, carload volumes were 2 percent higher than in fourth quarter 2012.
Compared to 2012, fourth quarter revenue growth was led by a 30 percent increase in Agriculture & Minerals and an 18 percent increase in Intermodal. Automotive and Industrial & Consumer Products were also strong, both with revenues growing by 9 percent in the fourth quarter of 2013. Chemical & Petroleum revenue grew 2 percent and Energy revenue declined by 17 percent compared to the prior year, primarily due to a decline in utility coal shipments.
“We expect to maintain our excellent growth momentum in 2014 and beyond. As 2014 evolves, investors can expect to see positive developments in a wide-range of commodity groups, including intermodal, automotive, steel and chemical & petroleum products,” Starling said. “Particularly exciting is that growth in these areas, as well as the increase of crude oil traffic originating in Canada and terminating at various Gulf locations, should continue to ramp up over the next five years. And, while longer term, when the positive impact of Mexican energy reform is considered, KCS appears well-positioned for growth over the next decade.”