Report
Keith Schoonmaker, CFA
EUR 147.86 For Business Accounts Only

Kansas City Southern Delivers Respectable Margins Despite 4% Decline in Carloads and Revenue

Kansas City Southern’s third-quarter carloads and revenue declined 4% from the prior-year period, and operating declined 9% as the firm contended lower freight demand, delays from flooding in South Texas, and disruptions on its Mexican network, and exchange rate headwinds; the operating ratio degraded 170 basis points to 66.9% despite modest help from a $16 million Mexican fuel excise tax credit (about 4% of expenses). Results are near our expectations, and, in our opinion, quite strong consider...
Underlying
Kansas City Southern

Kansas City Southern is a transportation holding company with domestic and international rail operations in North America. The company's subsidiary, The Kansas City Southern Railway Company, is a United States Class I railroad that serves a several region in the midwest and southeast regions of United States and has north/south rail route between Kansas City, MO and several main ports along the Gulf of Mexico in Alabama, Louisiana, Mississippi and Texas. The company's subsidiary, Kansas City Southern de Mexico, S.A. de C.V. operates a main commercial corridor of the Mexican railroad system and has as its main route a direct rail passageway between Mexico City and Laredo, TX.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Keith Schoonmaker, CFA

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