OREANDA-NEWS. Kansas City Southern (KCS) (NYSE:KSU) reported second quarter 2014 revenues of USD 650 million. Overall, carload volumes were 7% higher than in second quarter 2013.

Second quarter revenue growth compared to 2013 was led by a 33% increase in Agriculture and Minerals and a 25% increase in Automotive. Intermodal and Industrial & Consumer Products were also strong, growing by 14% and 10%, respectively. Chemical & Petroleum revenue grew by 6%, and Energy revenue declined by 5%, primarily due to a decline in utility coal shipments.

After adjusting for lease termination costs, operating expenses in the second quarter were USD 436 million, 9% higher than 2013 operating expenses. Adjusted operating income for the second quarter of 2014 was USD 214 million compared with USD 179 million a year ago, a 20% increase. KCS achieved a second quarter 2014 adjusted operating ratio of 67.0%, a 2.0 point improvement from second quarter 2013.

Reported net income in the second quarter of 2014 totaled USD 130 million, or USD 1.18 per diluted share, compared with USD 15 million, or USD 0.14 per diluted share, in the second quarter of 2013. Excluding the impacts of lease termination costs, foreign exchange rate fluctuations and debt retirement costs, adjusted diluted earnings per share for second quarter 2014 was USD 1.21, compared with USD 0.96 in the second quarter of 2013, a 26% increase.

Ў°During the second quarter of 2014, KCS experienced strong revenue growth from the shipment of grain and automotive,Ў± stated Kansas City Southern's President and Chief Executive Officer David L. Starling. Ў°KCS' core carload franchise continues to show strength in line with the general economy, while the energy commodity group declined due to reduced shipments of utility coal.

Ў°We are optimistic about our business in the second half of the year, but we again remind investors that grain growth rates will decline from the first half of 2014, reflecting the improved grain shipments in the second half of 2013. Therefore, we maintain our 2014 goals outlined to investors in January. Looking ahead, KCS' long-term growth story remains very much intact with the recent announcements of additional automotive plants in Mexico and the growth of our energy franchise with the announcement of the crude oil terminal in Port Arthur, Texas. Energy and automotive, along with cross-border intermodal, LЁўzaro CЁўrdenas expansion and a host of other system-wide opportunities, position KCS very well for business growth over the next several years.Ў±