Freight rail transportation services provider Kansas City Southern (KSU) reported Tuesday an increase in second-quarter profit, reflecting revenue and volume growth across all business segments, despite hefty debt retirement costs. On a per share basis, adjusted earnings came in above market expectations
For the second quarter, net income available to common shareholders shot up to $34.6 million or $0.34 per share from $6.5 million or $0.07 per share in the previous year. The results of the latest quarter included debt retirement costs or $0.21 per share. Excluding the one time costs earnings per share was $0.55.
On average, 14 analysts polled by Thomson Reuters expected the company to report earnings of $0.46 per share in the second quarter. Analysts' estimate typically excludes special items.
The results of 2010 second-quarter were hit by debt retirement costs of $32.5 million. Foreign exchange loss was $1.4 million, compared to gain of $6.0 million last year.
Revenues for the quarter increased 35% to $461.6 million from $341.3 million. Ten analysts were expecting revenue of $454.41 million in the second quarter.
The company noted that automotive revenues spiraled up 292% to $24.3 million, due to increase in auto production in Mexico. Intermodal revenues rose 54% year-over-year to $49.6 million, as new business lanes and organic volume growth continued to improve.
Revenue from Agriculture & Minerals rose 42% to $115.9 million, while Industrial & Consumer Products sales climbed 31% to $109.2 million from the prior year. Coal segmental revenues grew 25% to $53.3 million and Chemical & Petroleum revenues increased 18% to $93.4 million, compared to the same period last year.
Kansas City Southern also indicated that total volume for the quarter was up 24% to 468.4 thousand units.
Operating income for the second quarter advanced 195% to $127.2 million from a year ago. Operating expenses for the period increased 12% to $334.4 million.
In the immediately preceding quarter, Kansas City Southern reported first-quarter profit of $32.6 million or $0.34 per share, helped by a 26% revenue growth year-over-year.
Among competitors, Railroad operator CSX Corp. (CSX) said earlier this month that its second-quarter profit climbed by 36% over last year, driven by strong volume and revenue growth combined with lower operating expenses.
KSU is currently trading at $37.74, down $1.71 or 4.28%, on a volume of 974K shares on the NYSE.
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