Business

Quarterly profits drop at DST Systems, but year’s earnings are up

Shareholders of DST Systems Inc. will receive a 35 cent dividend per share for the first quarter, an increase from the previous 33-cent dividend.
Shareholders of DST Systems Inc. will receive a 35 cent dividend per share for the first quarter, an increase from the previous 33-cent dividend. mdavis@kcstar.com

Kansas City-based DST Systems Inc. reported an 11.7 percent drop in its fourth-quarter earnings but saw profits for all of 2016 jump 24 percent.

DST said Thursday it earned $59.9 million, or $1.84 per share, during October, November and December. In the same months of 2015, it had earned $67.8 million, or $1.94 a share.

The company’s board increased DST’s quarterly dividend to 35 cents a share, up 2 cents, starting with the first quarter of 2017.

Revenues in the quarter were $398.8 million, up from $383.2 million in the fourth quarter a year ago.

In all of 2016, DST earned $444.3 million, compared with $358.2 million in 2016.

The company traditionally reports an adjusted earnings for the quarter that excludes some gains and losses that it says are one-time items or otherwise cloud it business trends. Adjusted earnings in the fourth quarter were $53.9 million, compared with an adjusted profit of $48.9 million a year earlier.

Revenues were flat in the company’s larger financial services business, but it generated an increase in its operating profits. The smaller health care services business saw increases in both revenues and operating profits.

Mark Davis: 816-234-4372, @mdkcstar

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