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NEWS RELEASE KANSAS CITY KANSAS SOUTHERN Lines 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 Third Quarter Results Kansas City , Mo. , October 19 , 2021. Kansas City Southern ( KCS ) ( NYSE : KSU ) reported revenues of $ 744.0 million , an increase of 13 % from third quarter 2020. Overall , carload volumes were down 3 % compared to prior year primarily due to the following commercial impacts : • • Auto plant shutdowns driven by a global microchip shortage ; Service interruptions at Lazaro Cárdenas due to KCSM right - of - way blockages resulting from teachers ' protests ; and Increased regulation of refined fuel product shipments into Mexico resulting in supply chain disruptions . Third Quarter 2021 Third quarter revenues were $ 744.0 million , an increase of 13 % primarily resulting from mix , higher fuel surcharge , and the strengthening of the Mexican peso against the U.S. dollar . Third quarter operating expenses were $ 492.1 million , including $ 36.5 million in merger costs . Operating income was $ 251.9 million and the reported operating ratio was 66.1 % . Third quarter net income was $ 156.5 million , or $ 1.71 per diluted share . Adjusted third quarter operating income , operating ratio , net income , and diluted earnings per share were as follows : ( in millions , except operating ratio and diluted earnings per share ) Three Months Ended September 30 , 2021 GAAP Operating Results Merger Costs Other Adjustments , Net Adjusted Operating Results ( non - GAAP ) See following pages for reconciliations to GAAP Operating Income Operating Ratio $ 251.9 36.5 Net Income 66.1 % $ 156.5 ( 4.9 ) % Diluted Earnings per Share $ 1.71 28.2 0.31 0.3 288.4 61.2 % 185.0 2.02 " We are encouraged that despite several commercial headwinds , our network is performing extremely well and we are delivering near record velocity and dwell , " stated Patrick J. Ottensmeyer , KCS president and chief executive officer . " Underlying industrial demand is strong , and KCS has maintained resources to prioritize customer service as volumes return to the network . As certain supply chain disruptions are resolved and our revenue environment improves , our network will be well - positioned to handle incremental volume while continuing to provide premium service to our customers . " We are also very pleased to have announced our combination with Canadian Pacific , creating the first single- line rail network linking the U.S. , Mexico and Canada . This historic combination will enhance competition , create new options for customers , and support economic growth in North America . "