Regional railroad operator Kansas City Southern on Thursday said its profit tumbled 47 percent in the third quarter as shipping volume fell in a struggling economy.
The company said total carloads decreased 9 percent during the three-month period, reflecting an industrywide slowdown.
But it said that while revenue fell broadly versus a year ago, it rose from the second quarter, reflecting a gradually improving business environment.
After falling as low as $22.58 early in the session, the railroad's shares rose 3 cents to $24.62 in late morning dealings.
Kansas City Southern said it earned $25.8 million, or 27 cents per share, in the July-September period, down from $48.9 million, or 52 cents per share, a year ago.
Analysts surveyed by Thomson Reuters had expected earnings of 24 cents per share.
Revenue declined 21 percent to $386.1 million from $491.5 million a year ago and below analysts' expectations of $392.5 million.
Carloads declined in almost all categories, including a 35 percent drop in automotive, 17 percent dip in agriculture and 30 percent decline in industrial and consumer products. Shipments of petroleum and chemicals rose 8 percent while coal shipments were flat.
But compared with the second quarter, third quarter revenue rose 13 percent while total carloads advanced 12 percent.
"As encouraging as KCS' third quarter results are, management recognizes there is much work yet to be done to get the company's revenues and earnings back to pre-recession levels," said Michael Haverty, chairman and chief executive.
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