8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 21, 2011

KANSAS CITY SOUTHERN

(Exact name of company as specified in its charter)

DELAWARE	1-4717	44-0663509
(State or other jurisdiction of incorporation)	(Commission file number)	(IRS Employer Identification Number)

427 West 12th Street, Kansas City, Missouri 64105

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code:

(816) 983 - 1303

Not Applicable

(Former name or former address if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

Kansas City Southern (the “Company”, “KCS”) is furnishing under Item 2.02 of this Current Report on Form 8-K, the information included as Exhibit 99.1 to this report. Exhibit 99.1 is the Company’s press release, dated April 21, 2011, announcing the Company’s first quarter earnings and operating results. Included in Exhibit 99.1 are schedules regarding certain financial information discussed during the Company’s first quarter 2011 analyst presentation and conference call.

The information included in this Item 2.02, and Exhibit 99.1 to this Current Report on Form 8-K, shall not be deemed “filed” for the purposes of or otherwise subject to the liabilities under Section 18 of the Securities Exchange Act of 1934 as amended (the “Exchange Act”). Unless expressly incorporated into a filing of KCS under the Securities Act of 1933, or the Exchange Act made after the date hereof, the information contained in this Item 2.02 and Exhibit 99.1 hereto shall not be incorporated by reference into any filing of KCS, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

Item 9.01 Financial Statements and Exhibits.

(d)

Press Release dated April 21, 2011 issued by Kansas City Southern entitled “Kansas City Southern Reports First Quarter Revenue Growth of 12% on a 7% Increase in Volumes; Earnings per Share $0.58”.

- 2 -

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

			Kansas City Southern
Date: April 21, 2011	By:	/s/ Mary K. Stadler
		Name:	Mary K. Stadler
		Title:	Senior Vice President & Chief Accounting Officer (Principal Accounting Officer)

- 3 -

Exhibit Index

Exhibit No	Description
99.1	Press Release dated April 21, 2011 issued by Kansas City Southern entitled “Kansas City Southern Reports First Quarter Revenue Growth of 12% on a 7% Increase in Volumes; Earnings per Share $0.58”.

EX-99.1

Exhibit 99.1

Media Contact:	William H. Galligan	Phone:	816/983-1551
	bgalligan@kcsouthern.com

Kansas City Southern Reports First Quarter Revenue Growth of 12% on a 7% Increase in

Volumes; Earnings per Share $0.58

First Quarter 2011 Results

• Revenues of $489 million, a 12% increase from prior year on a 7% increase in carloadings

• Operating income of $128 million, an increase of 18% from a year ago

• Operating ratio of 73.8%, a 1.4 point improvement over first quarter 2010

• Diluted earnings per share of $0.58 for first quarter 2011 up from $0.34 in the first quarter 2010

Kansas City, MO, April 21, 2011. Kansas City Southern (KCS) (NYSE:KSU) reported first quarter 2011 revenues of $489 million, a 12% increase compared to the corresponding 2010 period. Overall, carload volumes were 7% higher than in first quarter 2010.

The improvement in revenue was led by Automotive with a 43% increase in first quarter 2011 as compared to the same period a year ago. Intermodal revenues also showed strength increasing 27% over the same time period. Other revenue improvements were 19% for Industrial and Consumer Products; 9% for Coal; and 8% for Chemical and Petroleum. Agriculture and Minerals reported a decline of 1%, attributable to a decline in cross border traffic into Mexico as availability of crops from a strong Mexican harvest has been sufficient to meet the local demand.

Operating expenses for the first quarter of $361 million were $33 million higher than the corresponding 2010 period, primarily due to a 31% increase in fuel. Operating income for the first quarter of 2011 was $128 million, which was 18% higher than 2010. KCS’s record first quarter operating ratio of 73.8% compared favorably with the 75.2% operating ratio reported for the corresponding 2010 period.

Net income available to common stockholders in the first quarter totaled $63 million, or $0.58 per diluted share, compared to $33 million, or $0.34 per diluted share in first quarter 2010.

“KCS’s first quarter results came in on track with our internal expectations and consistent with the volume and revenue guidance we provided for full year 2011,” stated David L. Starling,

president and chief executive officer. “In addition, our first quarter operating ratio improvement of 1.4 points is in line with the 1 to 1.5 point improvement guidance we gave for 2011; this despite higher fuel expense that we were unable to fully recover during the first quarter that cost approximately one point on the operating ratio.

“Business levels continue to be generally strong. We are especially pleased with the expansive growth in our intermodal business highlighted by 44% volume growth out of Lázaro Cárdenas and a 70% increase in our cross-border intermodal traffic. It is apparent that shippers are embracing the service we are providing over these corridors.

“KCS continues to perform at historically high levels of profitability. We believe our substantial market opportunities and determined efforts to control expenses should allow us to maintain our momentum through the year.”

Headquartered in Kansas City, MO, Kansas City Southern is a transportation holding company that has railroad investments in the U.S., Mexico and Panama. Its primary U.S. holding is The Kansas City Southern Railway Company, serving the central and south central U.S. Its international holdings include Kansas City Southern de México, S.A. de C.V., serving northeastern and central Mexico and the port cities of Lázaro Cárdenas, Tampico and Veracruz, and a 50 percent interest in Panama Canal Railway Company, providing ocean-to-ocean freight and passenger service along the Panama Canal. Kansas City Southern’s North American rail holdings and strategic alliances are primary components of a NAFTA Railway system, linking the commercial and industrial centers of the U.S., Mexico and Canada.

This press release may include statements concerning potential future events involving KCS and its subsidiaries, which could materially differ from the events that actually occur. The differences could be caused by a number of factors including those factors identified in the “Risk Factors” and the “Cautionary Information” sections of KCS’s Form 10-K for the most recently ended fiscal year, filed by KCS with the Securities and Exchange Commission (SEC) (Commission file no. 1-04717). KCS will not update any forward-looking statements in this press release to reflect future events or developments.

Kansas City Southern

Statements of Income

(In millions, except share and per share amounts)

(Unaudited)

	Three Months Ended March 31,
	2011			2010
Revenues	$	488.6		$	436.3
Operating expenses:
Compensation and benefits		100.4			90.7
Purchased services		48.1			44.9
Fuel		79.5			60.8
Equipment costs		41.4			38.7
Depreciation and amortization		45.7			45.8
Materials and other		45.7			47.2
Total operating expenses		360.8			328.1
Operating income		127.8			108.2
Equity in net earnings of unconsolidated affiliates		3.6			6.4
Interest expense		(33.1	)		(44.4	)
Debt retirement costs		—			(14.9	)
Foreign exchange gain (loss)		(0.1	)		2.6
Other income, net		1.7			0.5
Income before income taxes		99.9			58.4
Income tax expense		35.8			24.2
Net income		64.1			34.2
Less: Net income (loss) attributable to noncontrolling interest		0.1			(1.1	)
Net income attributable to Kansas City Southern and subsidiaries		64.0			35.3
Preferred stock dividends		1.4			2.7
Net income available to common stockholders	$	62.6		$	32.6
Earnings per share:
Basic earnings per share	$	0.60		$	0.34
Diluted earnings per share	$	0.58		$	0.34
Average shares outstanding (in thousands):
Basic		104,269			95,890
Potentially dilutive common shares		5,482			568
Diluted		109,751			96,458

Kansas City Southern

Revenues & Carloads/Units By Commodity – First Quarter 2011 and 2010

	Revenues (in millions) First Quarter				%			Carloads and Units (in thousands) First Quarter				%			Revenue per Carload/Unit First Quarter				%
	2011		2010		Change			2011		2010		Change			2011		2010		Change
Chemical & Petroleum
Agri Chemicals	$	6.0	$	6.2		(3%	)		3.9		4.1		(5%	)	$	1,538	$	1,512		2%
Other Chemicals		40.3		36.7		10%			24.8		24.0		3%			1,625		1,529		6%
Petroleum		28.0		25.2		11%			18.7		18.9		(1%	)		1,497		1,333		12%
Plastics		22.6		21.5		5%			15.6		15.2		3%			1,449		1,414		2%
Total		96.9		89.6		8%			63.0		62.2		1%			1,538		1,441		7%
Industrial & Consumer Products
Forest Products		55.1		46.8		18%			32.7		30.6		7%			1,685		1,529		10%
Metals & Scrap		45.2		36.3		25%			29.0		25.0		16%			1,559		1,452		7%
Other		18.2		16.7		9%			20.4		17.8		15%			892		938		(5%	)
Total		118.5		99.8		19%			82.1		73.4		12%			1,443		1,360		6%
Agriculture & Minerals
Grain		50.3		56.0		(10%	)		30.9		35.1		(12%	)		1,628		1,595		2%
Food Products		34.6		32.5		6%			17.2		17.5		(2%	)		2,012		1,857		8%
Ores & Minerals		14.4		12.4		16%			13.0		11.4		14%			1,108		1,088		2%
Stone, Clay & Glass		5.8		5.1		14%			3.2		3.3		(3%	)		1,813		1,545		17%
Total		105.1		106.0		(1%	)		64.3		67.3		(4%	)		1,635		1,575		4%
Coal
Unit Coal		55.9		51.7		8%			58.6		61.4		(5%	)		954		842		13%
Other Coal		8.7		7.3		19%			10.1		10.6		(5%	)		861		689		25%
Total		64.6		59.0		9%			68.7		72.0		(5%	)		940		819		15%
Intermodal		54.2		42.6		27%			175.9		150.5		17%			308		283		9%
Automotive		31.1		21.7		43%			20.1		17.8		13%			1,547		1,219		27%
TOTAL FOR COMMODITY GROUPS		470.4		418.7		12%			474.1		443.2		7%		$	992	$	945		5%
Other Revenue		18.2		17.6		3%
TOTAL	$	488.6	$	436.3		12%