Kansas City revenue falls 3.5% as COVID-19 hits volumes
U.S. railroad operator Kansas City Southern on Friday posted a 3.5% fall in quarterly revenue, in part due to lower volumes compared to levels seen early last year, Trend reports with reference to Reuters.
COVID-19-mandated lockdowns impacted railroad volumes in the first half of 2020 due to low demand for consumer products and industrial goods. A recovery in rail volumes has also been adversely impacted by the Texas deep-freeze in February.
The company’s net income rose to $153.4 million, or $1.68 per share, in the first quarter ended March 31, from $152.3 million, or $1.58 per share, a year earlier.
Operating ratio, a key metric for Wall Street, rose to 64.2% from 60.5% a year earlier. A lower operating ratio signals improved profitability.
Revenue fell to $706 million from $731.7 million in the first quarter ended March 31.