UPDATE 1-Lower revenue, Mexico problems hurt Kansas City Southern profit
By Nick Carey
DETROIT Oct 18 (Reuters) - Regional U.S. railroad Kansas City Southern on Tuesday reported a worse-than-expected quarterly net profit, weighed by falling freight volumes and disruptions stemming from anti-government protests in Mexico.
The railroad said that revenue in the third quarter was down 4 percent versus the same period in 2015.
The company saw revenue from its automotive business down 6 percent and revenue from intermodal, or consumer goods shipments, fall 7 percent, largely due to the Mexican service interruptions.
Kansas City Southern's revenue from its energy-related business also fell by 15 percent as reduced U.S. drilling operations in North Dakota resulted in lower crude oil and frac sand shipments.
The Kansas City-based company reported net income for the third quarter of $120.3 million or $1.12 per share, down more than 7 percent from $132.9 million or $1.21 per share a year earlier. Analysts had on average expected earnings per share for the quarter of $1.18.
Revenue in the quarter was $604.5 million, down from $631.9 million. Analysts had expected earnings per share of $602.7 million.
In late July, anti-government protests blocked Kansas City Southern tracks and those of other railroads in Mexico, causing service disruptions.
The company said that had it not been for the U.S. dollar strengthening versus the Mexican peso, its revenue would have only fallen 1 percent in the quarter. (Reporting By Nick Carey Editing by W Simon)
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