* Sees 2013 revenue growth in the high-single digits
* Q4 adjusted EPS $0.92 beats estimates of $0.82
* Shares up 5 percent to life high
Jan 22 Kansas City Southern's quarterly
profit beat Wall Street estimates, boosted by strong intermodal
and automotive volumes, and the railroad company forecast 2013
revenue growth in the high-single digits.
The company's shares rose 5 percent to an all-time high of
$91.81 on the New York Stock Exchange on Tuesday morning.
Kansas City Southern said it expects 2013 to be a "bridge
year" as it awaits a significant increase in volumes in 2014
from new automobile plants in Mexico.
"No one should interpret the term "bridge year" as
suggesting that Kansas City Southern will be in a low-growth
environment," Chief Executive David Starling said on a
post-earnings conference call.
The fourth-largest public railroad operator in the United
States said it expects 2013 revenue to grow at high-single
digits and volumes to grow in the mid-single digits.
Kansas City Southern is generally considered to be in a
better position than most railroads as it gets a boost from
cross-border trade. Other U.S. railroads have been hit by lower
shipments of coal due to a warm winter and low natural gas
The company is banking on four new auto factories coming up
in Mexico to boost volumes. Mexico accounts for about 45 percent
of Kansas City Southern's total revenue.
The factories are set to open in the first quarter of 2014
and will increase Mexican production by 25 percent to 30
percent, the company said on the call.
Kansas City Southern's net income fell to $92.5 million, or
83 cents per share, in the fourth quarter, from $96.0 million,
or 87 cents per share, a year earlier.
Excluding debt-retirement and other costs, the company
earned 92 cents per share. Revenue rose 7 percent to $568.4
Analysts had expected earnings of 82 cents per share on
revenue of $565.2 million, according to Thomson Reuters I/B/E/S.
Total carloads in the quarter rose 2 percent.
Revenue from intermodal volumes - which refers to the
shipment of goods in containers that can be shifted from one
form of transportation to another, such as from train to truck -
rose 14 percent. Automotive revenue jumped 33 percent.
Kansas City Southern is the first major U.S. railroad
company to report fourth-quarter results. CSX Corp and
Norfolk Southern Corp report results later on Tuesday,
while No. 1 U.S. railroad Union Pacific Corp reports on
Shares of Missouri-based Kansas City Southern, which has a
market valuation of about $9.6 billion, have gained about 30
percent since the beginning of 2012.