Kansas City Southern withdrew its 2015 revenue and volume
guidance because of "uncertainty" around energy markets, U.S. fuel
prices and currency impacts.
Shares, which have been down 20% this year through Wednesday's
close, fell 3.7% in recent trading.
The company reiterated its operating ratio goal of low-60s by
2017, according to a regulatory filing. It also authorized a
share-repurchase program of up to $500 million.
Kansas City Southern operates railroads in the Midwest and
Mexico that run north to south, in contrast to the majority of
other railroads, which run east to west. The company's focus on
cross-border traffic has led to revenue gains in recent years.
Recently, however, the Missouri-based rail company reported weak
results as depreciation of the peso and softness in its energy
segment offset strong chemical and intermodal revenues. Like many
companies, it has been affected by the volatility in the energy
sector--which began when oil prices began tumbling last year--and
the negative effect of the strong dollar.
Write to Angela Chen at angela.chen@dowjones.com
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