KCS closes 4Q04 with US$700k profit

US railway operator Kansas City Southern (KCS, NYSE: KSU) reported fourth quarter 2004 profit of US$700,000, reversing a US$5.2mn loss from the same year-ago period, KCS said. Net income for the year totaled US$24.4mn, doubling net income of US$12.2mn in 2003. Consolidated revenues in 4Q04 came to US$175mn, a 17.6% increase over the US$149mn posted in the same-period 2003. The company's primary domestic subsidiary Kansas City Southern Railway (KCSR) led the surge with fourth quarter revenue of US$174mn. In addition, Mexican railway concessionaire Grupo TFM - in which KCS is positioning itself to buy a controlling share - saw 4Q04 operating income drop US$4.8mn to US$32.1mn compared to 4Q03. While TFM's carload volume increased 13.7% quarter-over-quarter, US$8.4mn in added fuel expenses weighed on income. Grupo TFM's revenue dipped slightly to US$174mn during the quarter, versus US$175mn the year before. KCS is a transportation holding company with interests in the US, Mexico and Panama. KCS' subsidiaries and investments - including Grupo TFM - connect commercial and industrial centers in the US, Canada and Mexico.