Exhibit 99.1
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KCS: Ashley Thorne, 816-983-1530, athorne@kcsouthern.com

Kansas City Southern Reports Third Quarter Results

Kansas City, Mo., October 16, 2020.
Kansas City Southern (KCS) (NYSE:KSU) reported revenues of $659.6 million, a decrease of 12% from third quarter 2019. Overall, carload volumes were down 4% compared to prior year.

Third Quarter 2020

Third quarter revenues were $659.6 million, a decrease of 12% primarily resulting from lower volumes driven by a decline in demand due to COVID-19 and lower commodity prices, lower fuel surcharge, and unfavorable foreign currency impacts.

Third quarter operating expenses were $388.1 million. Operating income was $271.5 million and the reported operating ratio was 58.8%. Third quarter net income was $190.2 million, or $2.01 per diluted share. Adjusted third 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 September 30, 2020
Operating IncomeOperating RatioNet IncomeDiluted Earnings per Share
GAAP Operating Results$271.5 58.8 %$190.2 $2.01 
Adjustments, Net0.5 — (4.7)(0.05)
Adjusted Operating Results (non-GAAP)$272.0 58.8 %$185.5 $1.96 
See following pages for reconciliations to GAAP

As KCS' outlook improves, the Company has updated and improved elements of its 2020 guidance. The Company now expects adjusted diluted earnings per share to be slightly higher on a year over year basis, and full-year 2020 adjusted operating ratio to be on the low end of the 60% to 61% range. Additionally, previously provided 2020 capital expenditure guidance remains $425.0 million or below. Guidance for 2021 and 2022 capital expenditures remains at ~17% of revenue. Finally, the Company expects free cash flow to be approximately $550 million in 2020. See the following pages for a reconciliation of historical free cash flow.

The Company intends to enter into accelerated share repurchase agreements on or around October 16, 2020 for the repurchase of approximately $500 million of its outstanding shares of common stock. This will be executed under the Company’s $2 billion share repurchase program announced on November 12, 2019.

“Kansas City Southern’s strong third quarter results demonstrate the Company’s resiliency and the tremendous discipline and focus of our workforce,” stated President and Chief Executive Officer, Patrick J. Ottensmeyer. “Our service was tested this quarter with an unprecedented volume recovery and two hurricanes that struck


The following information was filed by Kansas City Southern (KSU) on Friday, October 16, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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