Railroad operator Kansas City Southern says fourth-quarter profit and sales fell

Kansas City Southern railroad profit falls

KANSAS CITY, Mo. — Freight railroad Kansas City Southern said Thursday that fourth-quarter profit and revenue fell, yet those declines have begun to narrow as the economy stabilizes.

Revenue improved for hauling chemical and petroleum products as energy demand that plunged during the recession recovers.

Overall volumes of shipments nearly matched year-ago levels.

The company said it earned $32 million, or 33 cents per share, compared with $36.4 million, or 40 cents per share, a year earlier.

During the third quarter, the company’s net income was nearly cut in half and in the second quarter, profits tumbled nearly 90 percent.

In the most recent quarter, revenue dipped 4 percent to $406.8 million. Volume fell just 1 percent from a year ago, but revenue from fuel surcharges fell 43 percent, to $26.8 million from $47.3 million a year earlier.

Analysts expected the company to earn 29 cents per share on sales of $397.2 million, according to a survey by Thomson Reuters.

Chairman and CEO Michael R. Haverty said the company was cautiously optimistic that the volume and revenue growth would continue throughout 2010.

For all of 2009, profit tumbled to $57 million, or 61 cents per share, from $168.7 million, or $1.86 per share. Revenue fell to $1.48 billion from $1.85 billion in 2008, with about one-third of the decline due to a $122 million drop in money from fuel surcharges.

Company shares rose 6 cents to $31.41 in afternoon trading.