Want to share your news with your industry? Submit a press release.
Top 1000 Companies Ranked by Revenue – in Multiple Sectors & Countries.
Kansas City Southern (KCS) reported its fourth-quarter and full-year 2020 results.
For the fourth-quarter revenues were $693.4m, a decrease of 5% primarily due to lower volumes related to a service interruption at Lazaro Cardenas due to teachers’ protests, lower fuel surcharge and fluctuations in foreign currency. Fourth-quarter operating expenses were $431.1m. Operating income was $262.3m.
Full-year revenues for 2020 were $2.6bn, a decrease of 8% on a 6% decline in carloads. Operating income was $1.0bn whilst full year 2020 net income was $619.1m.
During 2020, the KCS network experienced a rapid decline in volumes followed by an unprecedented volume rebound, forcing the company to quickly adjust its service model to match customer demand while optimizing its cost structure. These actions resulted in significant improvements to train length and fuel efficiency, improving 12% and 5%, respectively. PSR initiatives also contributed directly to operating expense savings of $96m in 2020 and are projected to deliver incremental savings of $50m in 2021.
“As we turn our focus to 2021, our primary objective will be the implementation of PSR Phase 3, which combines improved operational performance with an intense focus on customer service and revenue growth,” stated Ottensmeyer. “Phase 3 of PSR will help us capitalize on the unique growth opportunities available across our franchise.
“These growth opportunities, combined with an intense focus on excellent execution, give us the confidence to reinstate a multi-year outlook, which has improved from the guidance provided a year ago. We look forward to delivering another year of strong returns to shareholders.”
Source: Kansas City Southern