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NEWS RELEASE KANSAS CITY SOUTHERN Lines KANSAS CITY SOUTHERN MEXICO Panama Canal Railway Company 427 West 12th Street Kansas City , MO 64105 NYSE SYMBOL : KSU www.kcsouthern.com KCS : Ashley Thorne , 816-983-1530 , athorne@kcsouthern.com Kansas City Southern Reports First Quarter Results Kansas City , Mo. , April 16 , 2021. Kansas City Southern ( KCS ) ( NYSE : KSU ) reported revenues of $ 706.0 million , a decrease of 4 % from first quarter 2020. Overall , carload volumes were down 1 % compared to prior year . First Quarter 2021 First quarter revenues were $ 706.0 million , a decrease of 4 % primarily resulting from lower volumes , lower fuel surcharge , and fluctuations in foreign currency . First quarter operating expenses were $ 453.0 million . Operating income was $ 253.0 million and the reported operating ratio was 64.2 % . First quarter net income was $ 153.4 million , or $ 1.68 per diluted share . Adjusted first quarter operating income , net income and diluted earnings per share were as follows : ( in millions , except operating ratio and diluted earnings per share ) Three Months Ended March 31 , 2021 Operating Income Operating Ratio Diluted Earnings Net Income per Share GAAP Operating Results $ 253.0 64.2 % $ 153.4 $ 1.68 Merger Costs 19.3 ( 2.8 ) Other Adjustments , Net 15.2 6.0 0.17 0.06 Adjusted Operating Results ( non - GAAP ) $ 272.3 61.4 % $ 174.6 $ 1.91 See following pages for reconciliations to GAAP " Although our first quarter performance was impacted by several unique and challenging events , including the Polar Vortex , and lingering network congestion , our operating team is focused on improving operating metrics and customer service through PSR phase III " stated president and chief executive officer , Patrick J. Ottensmeyer . " Based on an outlook for improvement in volume growth and operational trends , we can confidently confirm our 2021 guidance . " " During the first quarter , we also announced an exciting and historic combination with Canadian Pacific , creating the first rail network connecting the U.S. , Mexico , and Canada . This combination is expected to provide an enhanced competitive alternative to existing rail service providers , resulting in improved service to customers of all sizes . This transaction represents an exciting opportunity for KCS and CP stakeholders , and we look forward to delivering the benefits to our customers , employees , investors , and communities . For more information on the transaction and the benefits it is expected to bring to the full range of stakeholders , visit FutureForFreight.com . "