Regional U.S. railroad Kansas City Southern reported a drop in revenue as its coal and energy-related freight volumes took a hit and the strong U.S. dollar hurt its Mexico-based business, but net profit rose. As natural gas prices have fallen, utilities have shifted away from coal, resulting in a 26 percent drop in first-quarter coal revenue. Fracking sand revenues were off 12 percent as oil producers in the Bakken oil formation in North Dakota scaled back production amid low oil prices. Overall freight volumes were up 1 percent in the quarter. Last week major railroads CSX Corp and Norfolk Southern Corp reported that results were hurt by lower freight volumes and the impact of a stronger U.S. dollar on some commodity imports. Kansas City Southern reported first-quarter net income of $101.2 million, or 91 cents per share, up nearly 8 percent from $94 million, or 85 cents per share, a year earlier. Adjusted for one-time expenses, the company reported earning per share of $1.03, down from $1.05 in the first quarter of 2014. On that basis, the results came in just below analysts' expectations of earnings per share of $1.07. The railroad's higher profit came despite a slight drop in revenue to $603.1 million from $607.4 million. The company said if it had not been for currency fluctuations, revenue would have risen 4 percent in the first quarter. The company said the weaker Mexican peso and lower fuel surcharges hurt results, but it benefited from a lower fuel bill. The railroad spent $81 million on fuel in the first quarter, down more than 22 percent from $103.9 million a year earlier. Kansas City Southern also benefited from a slightly lower tax rate in the quarter. (Reuters)