Kansas City Southern, which has agreed to be taken over by Canadian National Railway Co., reported on Friday a 37-per-cent jump in quarterly revenue, as a recovery from the pandemic-led downturn boosted freight volumes and fuel surcharges.
Revenue rose to US$749.5-million in the second quarter, in line with the average analyst estimate of US$750.08-million, according to IBES data from Refinitiv.
The smallest of the six U.S. Class 1 railways by revenue, Kansas City’s carload volumes rose 31 per cent in the three months ended June 30.
The company reported a net loss of US$378-million, or $4.17 per share, in the quarter, compared with a profit of $110.3-million, or $1.16 per share, a year earlier.
The loss was in part due to a US$700-million breakup fee it owed to Canadian Pacific Railway Ltd .
Kansas City’s US$33.6-billion merger with Canadian National is being scrutinized by U.S. regulatory authorities.
Adjusted operating ratio, a key profitability metric for Wall Street, was 61.4 per cent, compared with 65.2 per cent a year earlier.
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