Kansas City Southern posted higher third-quarter earnings and revenue as shipments increased, and the U.S. railroad said it expected a strong end to the year.
The Kansas City, Missouri-based company gets almost half of its revenue from Mexico. The strength of its cross-border business has placed Kansas City Southern in a better position than most U.S. railroads, whose heavy dependence on coal shipments has hurt them since early 2012 as demand for the fuel has slumped.
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Kansas City said it expected to benefit from growth in export grain shipments at the end of the year.
Revenue from all agricultural and mineral shipments rose 7 percent during the third quarter, led by an 11 percent rise for grain. On Thursday, Union Pacific said its agricultural revenue fell 2 percent.
Kansas City said it had earned $119 million, or $1.07 a share in the quarter, compared with $91 million, or 82 cents a share, a year earlier.
Revenue rose 8 percent to $622 million, and carload volumes increased 3 percent.
Shares of Kansas City, whose larger rivals include Union Pacific Corp and CSX Corp, closed at $113.16 Thursday on the New York Stock Exchange.