Kansas City Southern Industries Inc. reported net income of $27.4 million, or 61 cents a share, down less than 1 percent from the prior year.
Revenue increased 14 percent to $302.2 million.The company's transportation services, including Kansas City Southern Railway, had 9 percent higher net income of $10.6 million, with revenue up 9.5 percent revenue and expenses 8 percent higher.
Carloadings increased 15 percent, including higher volume in farm products, pulp and paper, chemicals and petroleum products.
Intermodal traffic nearly doubled as a result of new business alliances and the new route between Dallas and Atlanta in concert with Norfolk Southern.
Unit coal train volume fell 11 percent because of length of haul, seasonality of shipments and weather factors, the company reported.
Rail operating expense increased due to higher traffic levels, prompting a slight increase in the expense-to-revenue ratio from 78 percent last year to 78.5 percent this year.
Expenses increased for benefits, fuel and equipment rents tied to higher grain traffic.
The parent company's financial asset management unit contributed revenue of $55.4 million and net income of $6.3 million, down 30 percent, while information and transaction processing activities generated earnings of $13.1 million, up 26 percent, on revenue of $112.6 million.
Corporate and inter-segment eliminations reduced net income by $2.6 million.
The company also authorized repurchase of up to 6 million shares of stock, to be paid in part with funds generated from the planned public offering of 51 percent of the shares of DST, a subsidiary of KCS Industries that concentrates on financial asset management activities.