Kansas City Southern Gives Disastrous Economic Update, Pulls Guidance, Announces Stock Buyback
by Tyler Durden
ZeroHedge.com
05/14/2015
How does a company which reveals its business is so disastrous it not only has to withdraw revenue and volume guidance “due to uncertainty around energy-related markets, F/X impact and U.S. fuel price” and says that:
Q2 to Date Revenue and Carload Growth Well Behind Q1 Trends
Second Quarter Energy Segment Decline Accelerating
Service Issues are Impacting Growth
Key US Economic Indicators Have Deteriorated Since Late ‘14
Challenging U.S. Rail Volume Environment in Q2
… cover it all up in hopes of avoiding a total collapse in its stock price? Simple: it announces a $500 million stock buyback program.
Because the more one’s business deteriorates, the greater the buyback.
To wit, and do not the in your face “red-alert” color scheme. Golf clap for that:
The Rest…HERE
