Kansas City Southern earnings climb despite revenue drop

Second quarter profits climbed 7.4 percent at Kansas City Southern despite a nearly 3 percent drop in revenues.

The Kansas City-based railway company said Tuesday it earned $120.1 million, or $1.12 per share, in April, May and June, compared with $111.8 million, or $1.01 per share, a year earlier.

“On balance, we were pleased with our second quarter 2016 results, particularly with the positive volume trend experienced during late May and the entire month of June,” Patrick J. Ottensmeyer, the company’s newly named chief executive, said in the company’s announcement.

Revenues declined in part from the falling value of the Mexican peso relative to the U.S. dollar, though the peso’s decline also held down expenses.

For the quarter, Kansas City Southern took in $568.5 million in revenues, down from $585.8 million in the same quarter a year ago.

The company said flooding in Houston disrupted some operations in the quarter after causing service disruptions earlier in the year.

Shares of Kansas City Southern on Tuesday gained $1.80 and closed at $97.42.

This story was originally published July 19, 2016 at 9:52 AM with the headline "Kansas City Southern earnings climb despite revenue drop."