Kansas City revenue falls 3.5% as COVID-19 hits volumes By Reuters

© Reuters. FILE PHOTO: A freight train of KCS Railway Company is pictured in Toluca

(Reuters) – U.S. railroad operator Kansas City Southern (NYSE:) on Friday posted a 3.5% fall in quarterly revenue, in part due to lower volumes compared to levels seen early last year.

COVID-19-mandated lockdowns impacted railroad volumes in the first half of 2020 due to low demand for consumer products and industrial goods. A recovery in rail volumes has also been adversely impacted by the Texas deep-freeze in February.

The company’s net income rose to $153.4 million, or $1.68 per share, in the first quarter ended March 31, from $152.3 million, or $1.58 per share, a year earlier.

Operating ratio, a key metric for Wall Street, rose to 64.2% from 60.5% a year earlier. A lower operating ratio signals improved profitability.

Revenue fell to $706 million from $731.7 million in the first quarter ended March 31.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.