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Kansas City Southern 3Q profit up, but misses view

The Associated Press

NEWS: Kansas City Southern's third-quarter net income increased 31 percent as revenue improved across all units. But its results fell slightly short of Wall Street's expectations. The stock fell in Friday premarket trading.

DETAILS: The railroad company said that the biggest revenue rise came in its intermodal division, which was up 17 percent. The industrial and consumer products, agriculture and minerals and automotive units reported revenue increases of 7 percent each. The energy segment's revenue climbed 6 percent, while revenue for the chemical and petroleum unit climbed 3 percent.

NUMBERS: For the three months ended Sept. 30, Kansas City Southern's earnings after paying preferred dividends rose to $118.3 million, or $1.07 per share. That's up from $90 million, or 82 cents per share, in the prior-year period.

Stripping out debt retirement costs and foreign currency fluctuations, earnings were $1.10 per share.

Revenue climbed 8 percent to $621.6 million from $577.4 million benefiting from a 3 percent rise in carloads.

Analysts, on average, predicted earnings of $1.11 per share on revenue of $622.8 million.

FUTURE: Kansas City Southern, which is based in Kansas City, Mo., anticipates a strong end to the year, helped by increased export grain shipments.

STOCK: The shares shed 16 cents to $113 before the market open. Year to date, the stock is up 36 percent.