Kansas City Southern (KCS) recently released a financial report regarding its first-quarter earnings for 2012. Revenues increased 12% compared to this time last year, hitting an all-time record for quarterly revenues at $548 million.
“We are encouraged by the overall strength of our first quarter 2012 results,” KCS’s president and CEO David Starling said in the report. “Also during the first quarter, Standard & Poor’s upgraded its rating of KCS to BB+.” In response to the increased growth and revenues, KCS has announced that it will pay a quarterly cash dividend on common stock beginning in the second quarter of 2012 (Traded on the NTSE as KSU).
Although freight is on the rise overall for KCS, freight traffic remains light in the Tupelo area due to decreased demand in the region for rail transportation along this particular route.
The other rail company servicing the area, Burlington Northern Santa Fe (BNSF), has yet to release the company’s first quarter earnings, but earnings are expected to have risen with respect to last year. BNSF’s net income in the first-quarter of 2011 increased 20% from the first-quarter of 2010 and total revenue for 2011 sat at $19 billion. Toyota’s Blue Springs plant, which recently began full production of new 2012 Corollas, contracts with BNSF for automotive freight transport.
Kansas City Southern operates in the United States and Mexico, with rail lines serving northeast Mississippi including the towns of Tupelo, New Albany, Corinth, Aberdeen, Columbus, Starkville, and Louisville. KCS operates the rail line running north-south through east Tupelo, crossing East Main Street at Front Street.
Burlington Northern Santa Fe operates in the United States and Canada, with rail lines serving north Mississippi, including the towns of Tupelo, New Albany, Aberdeen, Columbus, Amory, Nettleton, Holly Springs, Olive Branch, and the Toyota Blue Springs plant. BNSF operates the rail line running northwest-southeast through central Tupelo, well known for its location at Crosstown, the intersection with Gloster Street and Main Street.
- Kansas City Southern 2012 First-Quarter Report (PDF)
- Burlington Northern Santa Fe 2011 First-Quarter Report (PDF)
- Mississippi Department of Transportation Rail-Map (PDF)