Kansas City Southern Q3 2008 Earnings Call Transcript

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2008-10-28 16:27:10.0

Tags: Kansas City Southern, Call Transcript, Earnings, Question, Telecom & Utilities, Seeking Alpha, Kansas City Southern, Call Transcript, Earnings, Question, Telecom & Utilities, Seeking Alpha

Question-and-Answer Session

Operator

Thank you. We'll now begin the question answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation sound will indicate your line is in question queue.

If you would like to remove your question from the queue, or if you are on speaker phone, it may be necessary to pick up the handset before pressing the star key. One moment please while we poll for questions. As a reminder it is star one to ask a question.

The first question is coming from the line of Jason Paddle of Salmon Rose. Please proceed with your question.

Jason Paddle - Salmon Rose

A couple of quick questions on the intermobile side. You've picked up a couple callings that are from Lazarow. Are these still intra-Mexico moves, or are we seeing cross-border business?

Patrick J. Ottensmeyer - EVP and CFO

Hi Jason this is Pat. These are still intra Mexico moves.

Jason Paddle - Salmon Rose

Now do you think that the cross border business might be pushed back or pushed out a little bit further given the economic softness and as people maybe people don't exactly need another option port because there's ample capacity on the current, on the Long Beach corridor?

Patrick J. Ottensmeyer - EVP and CFO

It's a little bit too early to tell Jason. I mean we go back to our projections, even some time ago we did not expect the cross border growth to occur initially. I think what we said fairly consistently is that the initial growth that led to our Lazslo-Cardinence was expected to be largely if not almost exclusively intra Mexico. So we didn't really plan on it this year or even to a large extent next year certainly as we said a couple of times we're keeping our fingers on the pulse on the economy trying to understand what the new normal is all about. But as we build the facilities, as we build our network, we still think that in the out years that those cross border opportunities will be there.

The other thing that I mentioned in my market update slide where we do see more immediate opportunity is in the truck market, the cross border market unrelated to the international business. When we get the Rosenberg facility and make some of the completes on the capital investments that are currently underway, we are obviously going to go after that business very aggressively.

 

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