Tighter operations strengthen KCS performance* A "tighter operating discipline" and strong pricing helped Kansas City Southern nearly double its first-quarter income and beat Wall Street estimates. The company earned $32.9 million or 39 cents per share compared with $17 million or 21 cents per share in the first quarter of 2007. Analysts had expected per-share earnings this year of 34 cents. KCS revenue in the first quarter grew nearly 10% to $450.6 million, operating income increased 15% to $83.4 million, and the operating ratio, 81.5%, was nearly one point better than last year. "We are encouraged by the year-over-year improvement in KCS's operating ratio, especially in the face of significantly higher fuel expenses and weather conditions which provided operating challenges throughout much of the first quarter," said Chairman and CEO Michael Haverty. "Tighter operating discipline contributed to our stronger operating performance, which was evidenced by improved trends in train velocity and terminal dwell time in the first quarter. In addition, the integration of approximately 180 new locomotives into our network fleet has resulted in significant improvement in locomotive availability over the last few months."
This article is encouraging. Employees I've spoken with over the years have said that Mike Haverty is the best thing that could have happened to KCS, and this article is one more in support of that opinion. Now, with this increased revenue, it would be nice if KCS makes good on their commitment to the MS Economic Development Agency. That commitment was to upgrade the Gulfport Branch with CWR, 55 mph signalling, and double-stack clearances to support increasing container traffic through the Port of Gulfport. In 2007 the container traffic through the port increased nearly 30% over 2004, the year before Hurricane Katrina. Today, ALL that traffic is being hauled by truck. :tb-mad:
