Kansas City Southern (NYSE:KSU) Q2 2016 Earnings Conference Call - Preliminary Transcript
Jul 19, 2016 • 08:45 am ET
Patrick J. Ottensmeyer
last eight years KCS operating ratio has improved by more than 12 four points. Since 2010, our earnings per share have more than doubled and our market value has almost doubled. As a result of debt repayments and refinancings undertaking since becoming investment grade in 2013 our combined with the overall low level of interest rates KCS today has the lowest average interest on our debt than any other class on railroad. In spite of recent pressures on business volume, and weak outlook for the overall economy, we continue to focus on top control and that has resulted in improvements in cash flow and profitability. As for the future and longer term trends, I am doubly fortunate to not only be CEO of a financially and physically strong company, the one which I truly believe is at the threshold of exciting growth opportunities. There's a tremendous amount of news industrial development activity taking place on our network at this moment, and these investments should drive our growth in the years ahead. All across our network, we're seeing new investments in auto plants, intermodal terminals, apollyon refinery, green elevators just to name a few. Our relationship with the other railroads in North America are very strong. This is an important factor because our ability to achieve our full growth depends on our ability to offer customer service options into markets where we don't serve directly. By virtue of our relationships and effective interchange with all of the other carriers. We are positioned to do that, as you've seen in the last two quarters as well. The the relationship we have with the other rail carriers is also very important in our ability to provide continuous service options when we are get by weather and other factors on our line. And finally, we have a great team of talented and dedicated employee. At all levels of the organisation. From a talent perspective, I feel we stack up very well against our larger railroad counterparts and have great confidence in this team's ability to lead KCS even higher performance levels in the years ahead. With that, we'll be happy to take a few questions.