Mark Szakonyi, Daily Content Editor | Jan 24, 2012 11:05AM EST
Kansas City Southern Railway saw fourth-quarter profit skyrocketed 84.6 percent year-over-year to $95.6 million, as the railroad’s 11 percent jump in revenue set quarterly and annual records.
The company’s revenue in the fourth quarter rose to $550.3 million on a record 522,000 carloads, a 7 percent year-over-year increase, with much of the growth from U.S.-Mexico trade. Like CSX Transportation and Union Pacific, which reported their earnings earler this month, KCS also exercised its pricing power.
Revenue from automobile shipments expanded 30 percent and intermodal business grew 29 percent in the fourth quarter, while coal revenue increased 20 percent in the same period.
The Kansas City, Mo.-based railroad said revenue per shipping unit rose 3 percent year-over-year to $978. The company’s operating ratio within the same period improved to 71.6 percent, from 71.8 percent.
The strong fourth quarter helped the railroad boost 2011 earnings 94 percent to $328.7 million, as revenue jumped 16 percent to a record $2.1 billion. Annual carload traffic hit the 2 million mark for the first time.
"We believe that in 2012, KCS will continue on a growth trend similar to that of the past year with mid-single digit increases in volumes and pricing,” said President and CEO David Starling. “We are also committed to further improvements in our operating ratio for 2012."
-- Contact Mark Szakonyi at mszakonyi@joc.com. Follow him on Twitter @Szakonyi_JOC