Kansas City Southern slashes revenue 23% in 2Q20
Kansas City Southern (KCS) reported revenue of $ 547.9 million on Friday, a 23% decrease from the second quarter of 2019.
Overall, car cargo volumes decreased 21% compared to the prior year.
Headquartered in Kansas City, Missouri, Kansas City Southern is a transportation company that has rail investments in the United States, Mexico, and Panama.
Second quarter revenue fell primarily as a result of an overall decrease in demand due to COVID-19.
At the same time, second quarter operating expenses were $ 367.5 million, including $ 10.5 million in restructuring charges related primarily to the voluntary separation program implemented in the quarter.
Operating income was 180.4 million and the reported operating index was 67.1%; On an adjusted basis, the operating result was 65.2 percent.
Likewise, second quarter net income was 110.3 million, or 1.16 per diluted share
Kansas City Southern
Due to the general economic uncertainty created by the global Covid-19 pandemic, KCS does not provide guidance on revenue, volume, operating ratio, or earnings per share.
The previously provided 2020 capital expenditures guide is still $ 425.0 million or less.
The guidance for capital expenditures for 2021 and 2022 remains at ~ 17% of income. The Company is on track to deliver $ 500.0 million or more of free cash flow in 2020.
«Kansas City Southern demonstrated excellent performance during an extremely challenging quarter,» said President and CEO Patrick J. Ottensmeyer. “Our network experienced a rapid decline in volumes followed by an unprecedented rebound, forcing us to quickly adjust our service model to match customer demand while optimizing our cost structure.
Its main American holding company is The Kansas City Southern Railway Company, which provides services in the central and southern central United States. Its international holdings include Kansas City Southern de México, SA de CV, which provides services in northeast and central Mexico and the port cities of Lázaro Cárdenas, Tampico and Veracruz, and a 50% interest in Compañía de Ferrocarriles del Canal de Panama, which provides ocean-to-ocean cargo and passenger services along the Panama Canal.
