UPDATE 1-K.C. Southern posts higher results, sees strong year-end
Oct 18 (Reuters) - Kansas City Southern posted higher third-quarter earnings and revenue as shipments increased, and the U.S. railroad said it expected a strong end to the year.
The Kansas City, Missouri-based company gets almost half of its revenue from Mexico. The strength of its cross-border business has placed Kansas City Southern in a better position than most U.S. railroads, whose heavy dependence on coal shipments has hurt them since early 2012 as demand for the fuel has slumped.
Kansas City said it expected to benefit from growth in export grain shipments at the end of the year.
Revenue from all agricultural and mineral shipments rose 7 percent during the third quarter, led by an 11 percent rise for grain. On Thursday, Union Pacific said its agricultural revenue fell 2 percent.
Kansas City said it had earned $119 million, or $1.07 a share in the quarter, compared with $91 million, or 82 cents a share, a year earlier.
Revenue rose 8 percent to $622 million, and carload volumes increased 3 percent.
Shares of Kansas City, whose larger rivals include Union Pacific Corp and CSX Corp, closed at $113.16 Thursday on the New York Stock Exchange.