Kansas City Southern
Kansas City Southern
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legal form | Corporation |
ISIN | US4851703029 |
founding | 1962 |
Seat | Kansas City , Missouri , |
management | Patrick J. Ottensmeyer (President and CEO ) |
Number of employees | 6,670 |
sales | 2,419,000,000 US dollars |
Branch | Rail transport |
Website | www.kcsouthern.com |
As of December 31, 2015 |
The Kansas City Southern is a American Holding -Unternehmen in the area of rail transport . Until 2002 the company was called Kansas City Southern Industries . The group of companies includes the two railway companies Kansas City Southern Railway and Kansas City Southern de México . The company is based in Kansas City (Missouri) .
history
The "The Kansas City Southern Railway" was created in 1900 as part of the reorganization of the bankrupt railway companies by Arthur E. Stillwell . For the next 60 years, the railway company served a largely unchanged route network that stretched from Kansas City and Dallas to the Gulf of Mexico in Port Arthur and New Orleans .
Due to the strong regulation in the rail sector and the nationalization of rail transport in the United States, many rail companies decided at the beginning of the 1960s to change their corporate structure. Thus, through the formation of a holding company, the company-defining railway company became a subsidiary alongside other companies in other branches of industry. The Kansas City Southern Railway was the first company to take this route and on January 29, 1962, Kansas City Southern Industries was founded. Chairman of the board and president was the previous president of the railway company William N. Deramus III.
Shortly after it was founded, the company began to expand through acquisitions in non-rail sectors. In December 1962, 40% of the investment company Television Shares Management Corporation was acquired. This company was later renamed Supervised Investors Services Inc. and sold to Kemperco Inc. in 1970 .
In 1966, KCSI acquired six radio and television stations in Illinois and Missouri for $ 3 million.
In 1967, after three bad years and a total loss of $ 7.2 million, the rail company stopped rail passenger transport. Due to the further focus on other branches of business, the railway sector was neglected. The regulatory authority ICC began in 1971 due to the progressive diversification in the rail sector with corresponding investigations. The Kansas City Southern Industries was chalked up that, among other things, the income of the railway operations flowed into other (partly uneconomical) areas of the company and the executives were withdrawn to the other subsidiaries. This would force a development to the detriment of the railway company.
In 1968 DST Systems Inc. (Data * sys * tance) was founded. Based on the experience with data management systems in the rail sector, appropriate applications and systems for the financial sector were developed.
In 1969/1970 the company was able to fend off a hostile takeover by the Lee National Corporation .
After Thomas S. Carter became President of the Kansas City Southern Railway in 1973 , an extensive investment and redevelopment program began. By 1978 more than $ 200 million had been invested. The capital for this came, among other things, from the finance department, which has grown in the meantime.
In 1983, KCSI acquired a majority stake in the investment company Janus Capital Corporation. In the same year, the LDX Group Inc. was founded together with Telecom Engineering. The broadcasting holdings were brought into this company.
In 1986 KSCI offered $ 2.5 billion for the takeover of the Southern Pacific Transportation rail company . The offer was refused. The investment area of the Janus group grew strongly in the following years, in 1991 alone Janus Capital was responsible for 10% of the investment funds in the USA. In 1992 a third of the total group income came from this group of companies. In 1993, $ 112 million of the $ 175 million revenue came from this area. Due to the growing income from the investment sector, the company was able to invest $ 500 million in the rail sector between 1987 and 1993 and in 1992 acquire the MidSouth Rail Corporation for $ 220 million .
The strong growth in the investment sector as well as the changed economic opportunities in the railway sector due to the deregulation of the Staggers Act led the company to consider restricting itself to only one of the two branches of business (railway or financial services). In 1994, the Illinois Central Railroad was therefore offered the railway division for purchase. However, this business failed, so discussions about the future direction of the company continued. From 1995 KSCI began to sell its shares in DST.
In 1997, KSCI and Transportacion Maritima Mexicana SA de CV (TMM) formed a consortium to acquire a rail concession in Mexico . The offer was accepted and Kansas City Southern de México was created based on the 50 year concession . The rail activities were bundled in the new company "Kansas City Southern Lines, Inc.". This company merged with the KCSI in 2001.
In 1998 the existing companies in the financial sector (Janus, Berger, DST) were merged into the newly founded "Stillwell Financial". The Janus Group was the economically dominant company. Janus managers pushed for a separate sale of this company. As a result, there were differences between the managers of Janus and KCSI. Finally, in July 2000, “Stillwell Financial” was spun off from the Kansas City Southern Industries group and became an independent, publicly traded company. The previous President and Chairman of the Board of KSCI Leland Rowland moved to "Stillwell Financial". In the same year the KCSI took part in the Panama Canal Railway .
Since the company was now almost exclusively in the rail sector, in 2002 the company was renamed "Kansas City Southern". In the following years, there was an economic focus on the rail operations of the smallest Class 1 rail company in the United States and the Mexican subsidiary.
Subsidiaries, holdings
As of December 31, 1993 | As of December 31, 2014 |
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Corporate governance
President and CEO
- 1962–1971: William N. Deramus III
- 1971–1983: Irvine O. Hockaday , from 1971 to 1987: CEO
- 1983-12. July 2000: Landon Rowland , also from 1987 to 2000: CEO
- July 12, 2000-13. June 2006: Michael R. Haverty , also from July 12, 2000 to August 1, 2010: CEO
- June 13, 2006–1. July 2008: Arthur L. Shoener
- July 1, 2008–1. March 2015: David L. Starling , from August 1, 2010 to June 30, 2016: CEO
- since March 1, 2015: Patrick J. Ottensmeyer , since July 1, 2016: CEO
Chairman of the board
- 1962–1989: William N. Deramus III
- 1990-1997: Paul Henson
- May 1, 1997-12. July 2000: Landon Rowland
- January 1, 2001 - May 1, 2014: Michael R. Haverty
- since May 1, 2014: Robert J. Druten
Company headquarters
The company moved to the Kansas City Southern Railway building on West 11th and Wyandotte Streets in Kansas City when it was founded.
In 2003, the company's headquarters were relocated to the newly constructed building on the corner of West 12th and Washington Street.
Web links
- Company website
- Funding Universe: Kansas City Southern
- Kansas City Southern Historical Society: History of the KCSR and the KCSI
Individual evidence
- ↑ KCS Names Patrick J. Ottensmeyer as President and Chief Executive Officer
- ^ Kansas City Southern Executive Leadership
- ↑ a b c Form 10-K 2015
- ^ Fundinguniverse.com Kemper Corporation
- ↑ fundinguniverse.com Janus Capital Group
- ↑ K-10 Exhibit 21.1 December 31, 1993
- ^ Form K-10 Exhibit 21.1 December 31, 2014
- ↑ buildings.com September 30, 2003: New Construction Awards 2003: Kansas City, Here I Come