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NEWS RELEASE KANSAS CITY SOUTHERN Lines KANSAS CITY SOUTHERN de MEXICO Panama Canal Railway Company KCS : Ashley Thorne , 816-983-1530 , athorne@kcsouthern.com 427 West 12th Street Kansas City , MO 64105 Kansas City Southern Reports Second Quarter Results Kansas City , Mo. , July 16 , 2021. Kansas City Southern ( KCS ) ( NYSE : KSU ) reported revenues of $ 749.5 million , an increase of 37 % from second quarter 2020. Overall , carload volumes were up 31 % compared to prior year . Second Quarter 2021 Second quarter revenues were $ 749.5 million , an increase of 37 % primarily resulting from higher volumes , higher fuel surcharge , and the strengthening of the Mexican peso against the U.S. dollar . ( in millions , except operating ratio and diluted earnings per share ) Second quarter operating expenses were $ 1,181.2 million , including a $ 700 million termination fee paid to Canadian Pacific . The $ 700 million reimbursement from Canadian National will be recognized upon KCS shareholder vote on the merger with Canadian National . Operating loss was $ 431.7 million and the reported operating ratio was 157.6 % . Second quarter net loss was $ 378.0 million , or $ 4.17 per diluted share . Adjusted second quarter operating income , operating ratio , net income , and diluted earnings per share were as follows : GAAP Operating Results Merger Costs Other Adjustments , Net Adjusted Operating Results ( non - GAAP ) $ Operating Income ( Loss ) NYSE SYMBOL : KSU www.kcsouthern.com ( 431.7 ) 720.8 289.1 Three Months Ended June 30 , 2021 Operating Net Income Ratio ( Loss ) 157.6 % $ ( 96.2 ) % 61.4 % Diluted Earnings ( Loss ) per Share ( 4.17 ) 6.26 ( 378.0 ) $ 569.4 ( 2.6 ) 188.8 $ ( 0.03 ) 2.06 See following pages for reconciliations to GAAP " KCS delivered strong second quarter volume growth , as our franchise benefited from unique growth drivers and the economy recovered from the COVID - 19 downturn , " stated president and chief executive officer , Patrick J. Ottensmeyer . " Although we are pleased with the strong volume growth , we fell short of our own expectations for customer service . " Our operating team is focused on implementing structural and sustainable changes that will improve operational performance and the resiliency of our network . To that end , we have deployed additional assets and crews in support of our service recovery , setting the Company up to continue delivering robust volume growth while improving customer service in the second half of 2021 . " During the second quarter , KCS also announced a pro - competitive merger with Canadian National , which will deliver more choices to customers through the creation of new , single line service options between the U.S. , Canada and Mexico . This combination represents an exciting opportunity for KCS and CN stakeholders , and we look forward to delivering a safer , faster , cleaner and stronger railroad . For more information on the transaction and its benefits , visit ConnectedContinent . "