Kansas City Southern on Friday reported lower revenue and earnings in the second quarter as it experienced an overall decline in freight shipments.
However, the profit beat analyst estimates and shares in the Kansas City-based railroad rose 6.5 percent, closing at $98.60, up $6.05.
For the three months that ended June 30, revenue fell 10 percent from the same quarter in 2014 to $586 million. Net income of $112 million was down from $130 million a year earlier.
The railroad said overall freight volume was 6 percent lower during the quarter than 2014’s second quarter. Revenue declined in all the company’s freight hauling groups except chemicals and petroleum, which grew 1 percent. Kansas City Southern said revenue from its energy group fell 46 percent partly because of a decline in coal shipments to utilities.
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North American railroads have been dealing recently with an industrywide freight decline.
Kansas City Southern said shipping volumes “increased each month throughout the second quarter, and the initial results from the first few weeks of July suggest the positive trend may be continuing.”