Merger Money Cuts Into Kansas City Southern''s Q2 Profit
The $700 million fee that Kansas City Southern paid to terminate its merger agreement with Canadian Pacific slashed KCS'' income for the second quarter. KCS (NYSE: KSU ) folded the fee into its operating expenses, which became $1.18 billion for the second quarter. It also led to a second-quarter net loss of $378 million, or $4.17 per diluted share, as well as an operating ratio of 157.6%. CN (NYSE: CNI ) will reimburse the $700 million fee should the CN-KCS merger be approved by federal regulators and shareholders. Removing the $700 million termination fee from second-quarter results shows a second-quarter net income of $188.8 million, or $2.06 per diluted share, on a non-GAAP basis. The operating ratio would be 61.4%. In the Full story available on Benzinga.com
Merger Money Cuts Into Kansas City Southern''s Q2 Profit
The $700 million fee that Kansas City Southern paid to terminate its merger agreement with Canadian Pacific slashed KCS'' income for the second quarter. KCS (NYSE: KSU ) folded the fee into its operating expenses, which became $1.18 billion for the second quarter. It also led to a second-quarter net loss of $378 million, or $4.17 per diluted share, as well as an operating ratio of 157.6%. CN (NYSE: CNI ) will reimburse the $700 million fee should the CN-KCS merger be approved by federal regulators and shareholders. Removing the $700 million termination fee from second-quarter results shows a second-quarter net income of $188.8 million, or $2.06 per diluted share, on a non-GAAP basis. The operating ratio would be 61.4%. In the Full story available on Benzinga.com