Business

Despite flooding, Kansas City Southern’s earnings and stock jump

Heavy rains in Texas and Louisiana had shut down parts of Kansas City Southern’s railway operations for three weeks but did not derail its first quarter earnings. The company earned $107.8 million during the first quarter, a 6.9 percent increase, despite a drop in revenues.
Heavy rains in Texas and Louisiana had shut down parts of Kansas City Southern’s railway operations for three weeks but did not derail its first quarter earnings. The company earned $107.8 million during the first quarter, a 6.9 percent increase, despite a drop in revenues.

Flooding shut down parts of Kansas City Southern’s railway operations for three weeks but did not derail its first quarter earnings.

The company posted $107.8 million in profits during the first quarter, or 99 cents a share, compared with $100.8 million, or 91 cents a share, in the same quarter a year ago. The 6.9 percent increase in profits came despite service problems last month.

Shares of Kansas City Southern jumped on the Tuesday morning report. The stock gained $4.55, or nearly 5 percent, to $96.02.

Heavy rains had disrupted service in eastern Texas and large parts of Louisiana in March. Revenues suffered, falling 6.6 percent to $562 million during January, February and March.

KSU stock

Mark Davis: 816-234-4372, @mdkcstar

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