By Nick Carey
DETROIT Oct 18 Regional U.S. railroad Kansas
City Southern on Tuesday reported a worse-than-expected
quarterly net profit, weighed by falling freight volumes and
disruptions stemming from anti-government protests in Mexico.
The railroad said that revenue in the third quarter was down
4 percent versus the same period in 2015.
The company saw revenue from its automotive business down 6
percent and revenue from intermodal, or consumer goods
shipments, fall 7 percent, largely due to the Mexican service
Kansas City Southern's revenue from its energy-related
business also fell by 15 percent as reduced U.S. drilling
operations in North Dakota resulted in lower crude oil and frac
The Kansas City-based company reported net income for the
third quarter of $120.3 million or $1.12 per share, down more
than 7 percent from $132.9 million or $1.21 per share a year
earlier. Analysts had on average expected earnings per share
for the quarter of $1.18.
Revenue in the quarter was $604.5 million, down from $631.9
million. Analysts had expected earnings per share of $602.7
In late July, anti-government protests blocked Kansas City
Southern tracks and those of other railroads in Mexico, causing
The company said that had it not been for the U.S. dollar
strengthening versus the Mexican peso, its revenue would have
only fallen 1 percent in the quarter.
(Reporting By Nick Carey Editing by W Simon)