Kansas City Southern reports Q4 2020 and Full-Year 2020 earnings results.
David C. Lester
Kansas City Southern (KCS) (NYSE:KSU) reported strong fourth quarter and full year 2020 results, despite significant operating and economic challenges.
Fourth Quarter 2020
Fourth quarter revenues were $693.4 million, a decrease of 5%primarily due to lower volumes related to a service interruption at Lazaro Cardenas due to teachers’ protests, lower fuel surcharge and fluctuations in foreign currency.
Fourth quarter operating expenses were $431.1 million. Operating income was $262.3 million and the reported operating ratio was 62.2%. Fourth quarter net income was $166.3 million, or $1.80 per diluted share. Adjusted fourth quarter operating income, operating ratio, net income and diluted earnings per share were as follows:
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“Despite several significant challenges in the fourth quarter, including continued impacts from the pandemic, weather events and an extended outage from illegal protests on segments of our network in Mexico, KCS delivered strong fourth quarter results,” stated president and chief executive officer, Patrick J. Ottensmeyer. “Thanks to the hard work and dedication of our employees, we are overcoming the adversity that we faced in the fourth quarter and throughout 2020, and we heighten our focus on Precision Scheduled Railroading (PSR)-driven service improvements to realize the significant growth opportunities that we see going forward.”
Full Year 2020
Full year 2020 revenues were $2.6 billion, a decrease of 8% on a 6% decline in carloads. Operating income was $1.0 billion and the reported operating ratio was 61.9%. Full year 2020 net income was $619.1 million, or $6.54 per diluted share.
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“Despite several significant challenges in the fourth quarter, including continued impacts from the pandemic, weather events and an extended outage from illegal protests on segments of our network in Mexico, KCS delivered strong fourth quarter results,” KCS President and CEO Patrick J. Ottensmeyer said.
Kansas City Southern reported Jan. 22 that fourth-quarter 2020 revenue fell 5% to $693.4 million vs. $729.5 million in the comparable 2019 quarter. This was based on lower volumes (3% decline) related to a 59-day service disruption at Lazaro Cardenas due to teachers’ protests; lower fuel surcharge; and fluctuations in foreign currency.