From The Associated Press
KANSAS CITY, Mo. —
Rail company Kansas City Southern said Friday that its second-quarter net income dropped 87 percent, absent a hefty one-time restructuring gain recorded a year earlier. Adjusted earnings and revenue beat analysts’ estimates.
For the three months ended June 30, the transportation holding company earned $15.4 million, or 14 cents per share. That compares with $120.4 million, or $1.09 per share, a year ago.
Last year’s quarter included a gain of 27 cents per share related to restructuring.
Excluding debt retirement costs, foreign exchange rate fluctuations and the restructuring gain, earnings rose to 96 cents per share from 88 cents per share.
Analysts, on average, forecast earnings of 95 cents per share, according to a FactSet survey.
Total operating expenses climbed to $400 million from $341.5 million.
Revenue for the Kansas City, Mo., company totaled $579.3 million, up 6 percent from $545.3 million a year earlier. This topped the $577.3 million that Wall Street expected.
Revenue improved for most segments, with the strongest performances including the energy unit and the automotive division.
Carload volumes increased 3 percent.
Kansas City Southern has railroad investments in the U.S., Mexico and Panama. Its stock shed 47 cents to $116.40 in morning trading. The overall market fell on disappointing earnings from technology companies including Google Inc. and Microsoft Corp.