Revenues, shares drop at Kansas City Southern

Lower car loadings in coal and a weaker Mexican peso pressured revenues at Kansas City Southern early this year, the company said Tuesday.

Earnings climbed, however, to reach $100.8 million, or 91 cents a share, in January, February and March. A year ago, the railway company had earned $93.7 million, or 85 cents, during those three months.

Investors bid Kansas City Southern shares down by $2.39 to $104.98, a 2.2 percent drop.

In the earnings announcement, chief executive David Starling promised improvements ahead.

“We believe our ability to scale operating expenses and capital where necessary, provide KCS (Kansas City Southern) with the opportunity to improve earnings as 2015 progresses,” Starling said.

Revenues totaled $603.1 million compared with $607.4 million in the first quarter of last year. The decline was due partly to lower fuel prices that cut into fuel surcharges the railway levied.

This story was originally published April 21, 2015 at 9:34 AM with the headline "Revenues, shares drop at Kansas City Southern."