Kansas City Southern's Stock Drops After Withdrawing Outlook

Kansas City Southern's stock dropped 2.5% in premarket trade Thursday, after the railroad company cuts its capital expenditure plans and withdrew its full-year revenue and volume outlook, citing uncertainty with energy-related markets and the impact of currency movements. Separately, the company established a new $500 million stock repurchase program to run through June 2017. The company now expects 2015 capex in the range of $650 million to $670 million, compared with a previous outlook of $700 million to $720 million. The previous revenue guidance was lowered on March 23 to growth in the low single-digit percentage range from mid single-digits. The stock has slumped 20% year to date through Wednesday, while the Dow Jones Transportation Average has lost 6.4%.