Kansas CitySouthern (KSU), a leading freight rail transportation company, reported financial results for the first quarter of 2011. Quarterly net income was $62.6 million or 58 cents per share compared with $32.6 million or 34 cents per share in the year-ago quarter. Quarterly EPS of 58 cents was exactly in line with the Zacks Consensus Estimate.
Quarterly total revenue was $488.6 million, up 12% year over year, surpassing the Zacks Consensus Estimate of $481 million. This was primarily attributable to higher carloadings and pricing gains.
Quarterly operating ratio was 73.8% compared with 75.2% in the prior-year quarter. This was the best ever first-quarter operating ratio in the company’s history. Total business volume in the reported quarter was 474,100, up 7% year over year. Operating income in the reported quarter was $127.8 million, up 18.1% year over year.
Segment Wise Results
In the first quarter of 2011, Chemical & Petroleum segment accounted for $96.9 million of total revenue, up 8% year over year. Business volume was 63,000, up 1% year over year. Revenue per carload was $1,538, up 7% year over year.
Industrial & Consumer segment accounted for $118.5 million, up 19% year over year. Business volume was 82,100, up 12% year over year. Revenue per carload was $1,443, up 6% year over year.
Agriculture & Minerals segment accounted for $105.1 million, down 1% year over year. Business volume was 64,300, down 4% year over year. Revenue per carload was $1,635, up 4% year over year.
Coal segment accounted for $64.6 million, up 9% year over year. Business volume was 68,700, down 5% year over year. Revenue per carload was $881, up 37% year over year.
Intermodal segment accounted for $54.2 million, up 27% year over year. Business volume was 175,900, up 17% year over year. Revenue per carload was $308, up 9% year over year.
Automotive segment accounted for $31.1 million, up 43% year over year. Business volume was 20,100, up 13% year over year. Revenue per carload was $1,547, up 27% year over year.
Quarterly Other revenue was $18.2 million, up 3% year over year.
Recommendation
Kansas CitySouthern competes with other class one freight railroads such as Union Pacific Corp. (UNP) and CSX Corp. (CSX). We maintain our long-term Neutral recommendation on Kansas City Southern. Currently, it holds a short-term Zacks #3 Rank (Hold) on the stock.
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KANSAS CITY SOU (KSU): Free Stock Analysis Report
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