Kansas City Southern on Oct. 19 reported record revenue for the third quarter, buoyed by a 17% increase in chemical and petroleum products and an 8% jump in automotive and intermodal shipments.
The Kansas City, Mo.-based railroad said it had revenue of $699 million, an increase of 5.9% compared with $660 million for the same period in 2017.
The company had a net income of $174 million, or $1.70 per diluted share, compared with $129 million and $1.63 per share in the year-ago period. Revenue for the quarter increased 17% in the chemicals and petroleum commodity group, especially as the company increased refined-product shipments to Mexico. Revenue also was up 8% in the automotive and intermodal sector and flat in the consumer products, agriculture and minerals sector. Energy revenue declined by 2%.
Overall carload volume was up 4% compared with 2017.
The company’s operating ratio improved to 62.0 compared with 64.4 in the third quarter of 2017. Operating ratio, or operating expenses as a percentage of revenue, is a key industry metric used to measure efficiency. The lower the ratio, the greater the company’s ability to generate profit.
“As we look to 2019, our cross-border network offers unique opportunities for volume growth from our robust chemical and petroleum, intermodal, automotive and export grain franchises,” Kansas City Southern CEO Patrick Ottensmeyer said. “Moreover, the capital investments that we have made throughout our network position us to deliver superior long-term growth and strong financial results to our stockholders.”