Kansas City Southern Revenue Drops 3 Percent in 2016

(Photo courtesy Kansas City Southern)

Kansas City Southern (KCS) reported fourth quarter 2016 revenues of $599 million, unchanged from fourth quarter 2015. Revenue was $2.3 billion for the full year of 2016, down 3 percent from 2015.

Overall, carload volumes were unchanged compared to the prior year. And, the railroad said, excluding the estimated impact of Mexican peso depreciation, revenues would have increased by 3 percent compared to the fourth quarter of 2015.

“KCS’ ability to react swiftly and efficiently was proven throughout 2016, as our network faced challenging operational interruptions throughout the year,” Kansas City Southern’s President and Chief Executive Officer Patrick J. Ottensmeyer said in a news release. “In addition, volatility in key commodities such as energy, consumer, and intermodal markets created uncertainty during 2016. Despite these conditions, KCS’ achieved a full-year operating ratio of 64.9 percent, a 1.5 point improvement versus 2015 adjusted.

“Looking ahead to 2017, the Company is aware of both economic and political uncertainty,” Ottensmeyer added. “However, we continue to emphasize our commitment to growth and we are well positioned to take full advantage of the significant new business opportunities that lie ahead of us.”