KCS, CN follow CSX, UP with big earnings hike
On the heels of blockbuster third quarter earnings reports by CSX and Union Pacific, Kansas City Southern and Canadian National on Oct. 26 reported their own impressive earnings improvements.
Kansas City Southern reported doubling its third quarter net income, and reducing its operating ratio from 78.3 percent a year ago to 73.5 percent for the most recent third quarter. Operating ratio is the railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists as a basic measure of carrier profitability.
KCS said its profits would have been even stronger were it not for the impact of Hurricane Alex.
Separately, Canadian National reported that third quarter net income soared by 21 percent over the same period in 2009, and that its operating ratio declined to 60.7 percent from almost 63 percent for the third quarter 2009.
Norfolk Southern reports third quarter earnings Oct. 27.
Union Pacific last week reported its most profitable quarter ever for the three months ending Sept. 30, 2010.
CSX last week reported its third quarter earnings had soared by 43 percent.
As BNSF is now privately held, it no longer reports quarterly earnings.