Kansas City Southern (KSU), engaged in the freight rail transportation business, has recorded an 8.43 times surge in profit for the quarter ended Jun. 30, 2014.
The company earned $129.80 million or $1.18 a share in the second-quarter compared with $15.40 million or $0.14 a share a year ago. Non-GAAP earnings per share came in at $1.21, when analysts expected $1.16.
Revenue during the second-quarter grew 12.15 percent to $649.70 million from $579.30 million in the last year period.
Gross margin expanded by 57 basis points over the previous year period to 69.06 percent. Total expenses as a percentage of revenues decreased to 99.26 percent from 100.55 percent in the same period last year. That has resulted in improvement of 73 basis points in operating margins to 31.68 percent.
The company disclosed operating income of $205.80 million, compared with operating income of $179.30 million in the last year period.
''During the second quarter of 2014, KCS experienced strong revenue growth from the shipment of grain and automotive,'' stated Kansas City Southern's president and CEO David L. Starling. ''KCS' core carload franchise continues to show strength in line with the general economy, while the energy commodity group declined due to reduced shipments of utility coal.''
''We are optimistic about our business in the second half of the year, but we again remind investors that grain growth rates will decline from the first half of 2014, reflecting the improved grain shipments in the second half of 2013. Therefore, we maintain our 2014 goals outlined to investors in January.
Looking ahead, KCS' long-term growth story remains very much intact with the recent announcements of additional automotive plants in Mexico and the growth of our energy franchise with the announcement of the crude oil terminal in Port Arthur, Texas. Energy and automotive, along with cross-border intermodal, Lázaro Cárdenas expansion and a host of other system-wide opportunities, position KCS very well for business growth over the next several years.''
Shares of Kansas City Southern declined $0.22 or 0.19 percent to settle at $113.26 on Thursday.