Kansas City Southern (KSU 110.40, -1.10) is down 1.0% in pre-market despite beating earnings expectations.
The rail carrier reported above-consensus fourth quarter earnings of $1.38 per share on a 10.3% year-over-year increase in revenue to $660.40 million, which was just ahead of estimates.
Carload volumes grew 5.0% year-over-year, making for a fourth quarter record. Operating ratio stood at 64.0% at the end of the quarter, representing a year-over-year improvement of 0.8 points.
Looking at the segment breakdown, Chemical & Petroleum revenue grew 23.6% year-over-year to $137.70 million. Petroleum revenue surged 55.4% to $48.8 million. Segment carloads grew 11.5% to 67,700 while revenue per carload/unit increased 10.8% to $2,034.
Industrial & Consumer Products revenue increased 8.2% to $147.10 million with growth in other revenue (+17.8% to $28.50 million) pacing the increase. Segment carloads grew 9.8% to 84,100 while revenue per carload/unit declined 1.5% to $1,749.
Agriculture & Minerals revenue declined 0.7% to $121.70 million. The decline was paced by a 9.7% decline in Stone, Clay & Glass revenue, which fell to $6.50 million. Segment carloads declined 9.1% to 60,700 while revenue per carload/unit rose 9.3% to $2,005.
Energy revenue rose 15.0% to $69.80 million with crude oil revenue (+192.6% to $7.90 million) pacing the increase. Segment carloads increased 3.2% to 73,700 while revenue per carload/unit increased 11.4% to $947.
Intermodal revenue increased 5.3% to $97.40 million. Carloads rose 7.4% to 258,500 while revenue per carload/unit declined 1.8% to $377.
Automotive revenue grew 14.6% to $60.60 million. Carloads increased 5.1% to 40,900 while revenue per carload/unit rose 9.0% to $1,482.
The company did not issue formal guidance, but noted that it expects to maintain growth momentum in 2018 while focusing on cost control.