The Kansas City Southern Railway reported record revenues of $714 million for the second quarter of 2019. It was a 5% increase over the second quarter 2018 revenues.
The company said the record revenues occurred even as carload volumes were flat compared to a year ago. Kansas City Southern Railway has extensive trackage throughout eastern Oklahoma.
The company said a 19% increase in chemicals and petroleum was responsible for the revenue growth. It explained the increase was due to growth in shipments related to Mexico energy reform and a 5% increase in automotive.
Kansas City Southern rail cars carry routine new car shipments from Kansas City south through Oklahoma and to Texas. Still, the company said the increases were partially offset by revenue declines in the remaining four commodity groups.
Energy revenues were down 5% as increased utility coal shipments were more than offset by declines in frac sand and crude oil. Industrial and consumer productions and agriculture and minerals revenues each dropped by 2% and intermodal revenues declined 1%.
Reported net income in the second quarter of 2019 was $129 million or $1.28 per diluted share compared with $148 million or $1.45 per share in the second quarter of 2018.