KCS, CN follow CSX, UP with big earnings hike, NS and CP do well

Written by jrood

On the heels of blockbuster third quarter earnings reports by CSX and Union Pacific, Kansas City Southern and Canadian National on Oct. 26 reported their own impressive earnings improvements. Kansas City Southern reported doubling its third quarter net income, and reducing its operating ratio from 78.3 percent a year ago to 73.5 percent for the most recent third quarter. Operating ratio is the railroad's operating expenses expressed as a percentage of operating revenue and is considered by economists as a basic measure of carrier profitability. KCS said its profits would have been even stronger were it not for the impact of Hurricane Alex. Separately, Canadian National reported that third quarter net income soared by 21 percent over the same period in 2009, and that its operating ratio declined to 60.7 percent from almost 63 percent for the third quarter 2009. Canadian Pacific Railway announced a 15 percent increase in third-quarter revenues with gains across most lines of business. Reported net income was $197.3 million and diluted earnings per share were $1.17, both down six percent over third-quarter 2009, which included other specified items of $0.41 per share principally from significant real estate sales. Adjusted diluted earnings per share increased 27 percent to $1. Adjusted operating ratio improved 270 basis points to 73.7 percent. Norfolk Southern declared a regular quarterly dividend of 36 cents per share on its common stock, payable on Dec. 10, to stockholders of record on Nov. 5. This is the 113th consecutive quarter NS has paid dividends on it common stock. Union Pacific last week reported its most profitable quarter ever for the three months ending Sept. 30, 2010. CSX last week reported its third quarter earnings had soared by 43 percent. As BNSF is now privately held, it no longer reports quarterly earnings.

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