Kansas City Southern saw single-digit decreases in revenue from its coal businesses during the third quarter, compared to the year-ago period.
The railroad reported that its coal and petroleum coke segment generated $11.3 million in revenue during the recent period, a 5% decline from the third quarter of 2018, while those carloads were also down 22% from the year-ago period, according to the company's earnings release.
Kansas City Southern's utility coal fared better during the quarter, with revenue dropping only 1% to $35.1 million year over year and utility coal carloads up 3% from the third quarter of 2018.
Mike Naatz, the railroad's chief marketing officer, said on an Oct. 18 earnings call that the company expects its energy and intermodal segments to remain below those of last year.
"On the energy side of things, volumes and revenues were down due to decreases in frac sand and Canadian crude," he said, "which was partially offset by year-over-year growth in utility coal volumes."
Kansas City Southern COO Jeffrey Songer said the railroad continued to implement sequential improvements as part of its precision scheduled railroading transition. Kansas City Southern's gross velocity improved 32% year over year, while dwell improved 23% year over year as a result.
"We continue to see strong year-over-year improvements in our key metrics," he said.
Kansas City Southern reported $180.6 million in net income for the quarter, or $1.81 per diluted share, increasing year over year from $174 million, or $1.70 per diluted share.