The fourth-largest publicly held U.S. railroad reported net income of $75 million, or 68 cents per share, for the first quarter, up from $64 million, or 58 cents a share a year before.
Excluding debt retirement costs, the company earned 75 cents per share in the first quarter, above the 72 cents expected on average, according to Thomson Reuters I/B/E/S.
Quarterly operating revenue rose 12 percent to a record $548 million on a 7 percent rise in carloads, topping the average $543.1 million forecast.
Revenue rose by double-digits for shipments of goods ranging from minerals and agricultural to consumer and industrial products. Intermodal revenue jumped 26 percent, leading the pack, and helping overshadow a 1 percent decline in energy revenue.
Intermodal refers to the shipment of goods in containers that can be moved from one transportation method to another, such as from train to truck or train to ship.
Lower utility coal demand as a result of a mild winter and decade-low natural gas prices, was partially offset by higher revenue from crude oil and frac sand in the quarter compared with a year ago, the company said.
Kansas City Southern reiterated that it will start to pay a quarterly dividend in the second quarter. Its first is for 19.5 cents per share payable on April 27 to holders at the close of business on April 16.
The company in November paid down more than $120 million of high-cost debt, Moody's Investors Service and Standard & Poor's in the first quarter raised the company's credit rating to one notch below "investment-grade."
Kansas City Southern has been trying to pare debt and improve results to achieve "investment-grade" status like its larger Class I U.S. railroad competitors.
The two largest public U.S. railroads -- Union Pacific Corp and CSX Corp, last also reported above-forecast profits despite soft coal shipments. (Reuters)
