Kansas City Southern (KSU) 8-K Kansas City Southern Reports Fourth Quarter Revenues Up 18%; Record

Exhibit 99.1

Date: January 27, 2011

Media Contact:             William H. Galligan, (816) 983-1551

bgalligan@kcsouthern.com

Kansas City Southern Reports Fourth Quarter Revenues Up 18%; Record

Operating Ratio of 71.8%

Fourth Quarter 2010 Results

• Revenues of $479 million, an increase of 18% over fourth quarter 2009 on a 12% increase in carloadings

• Operating income of $135 million, an increase of 47% over fourth quarter 2009

• Operating ratio of 71.8%, a 5.5 point improvement from fourth quarter 2009

• Adjusted diluted earnings per share of $0.62, excluding a $0.12 loss for debt retirement costs in the quarter, an 82% increase over the prior year’s results

Kansas City, MO. Kansas City Southern (KCS) (NYSE:KSU) reported fourth quarter 2010 revenues of $479 million reflecting continued improvement in economic conditions in the markets served. Sequentially, revenues recovered from third quarter 2010 which were negatively impacted by service disruptions caused by Hurricane Alex.

Revenue growth was experienced across all commodity groups. Automotive revenues were up 41% over fourth quarter 2009 as a combination of strong pricing and new cross border vehicle routings benefitted the commodity group. Coal revenues increased 31% from a year ago on improved contract pricing which took effect at the beginning of 2010. Intermodal revenues were up 28% on a strong volume increase of 24%. Other period-over-period revenue improvements were 23% for Industrial & Consumer Products, 11% for Chemical & Petroleum, and 8% for Agriculture & Minerals.

Reported operating income for the fourth quarter was $135 million representing a 47% increase from a year ago. The Company reported a fourth quarter 2010 operating ratio of 71.8% compared with 77.3% in fourth quarter of 2009. Operating expenses in the fourth quarter increased 9% from a year ago on a revenue increase of 18%.

The Company has produced positive free cash flow of $174 million year to date, including $48 million in the fourth quarter.

Reported net income available to common stockholders in the fourth quarter totaled $52 million, or $0.50 per diluted share, compared to $32 million, or $0.34 per diluted share in fourth quarter 2009. Excluding debt retirement costs related to refinancing activity in the fourth quarter 2010, adjusted

diluted earnings per share was $0.62, an 82% increase over the fourth quarter 2009.

For the full year 2010, revenues were $1,815 million, up 23% over 2009 in spite of lost revenue from Hurricane Alex in the third quarter of 2010. Carloads for 2010 were up 15% over 2009 as the general economy improved and KCS continues to execute on its plan. Operating income increased 82% over the prior year and the Company’s 2010 operating ratio was 73.2%, an 8.8 point improvement from 2009. Diluted earnings per share for full year 2010 were $1.67 compared to $0.60 for 2009. Excluding debt retirement costs, adjusted diluted earnings per share were $2.11 and $0.64 for 2010 and 2009, respectively.

“A solid fourth quarter capped off a year in which KCS’s 2010 linehaul revenues exceeded 2008 levels,” stated executive chairman Michael R. Haverty. “The speed with which we recovered was truly impressive and speaks to the resiliency and vitality of the markets KCS serves and to the quality of our management who has been instrumental in the Company attaining record levels of operating efficiency and profitability. We believe that KCS will continue to deliver attractive volume and revenue growth as well as sustaining a high level of operating performance in 2011.”

David L. Starling, president and chief executive officer, stated, “KCS’s fourth quarter operating ratio of 71.8% improved 5.5 points from a year ago and marked the lowest quarterly operating ratio in the Company’s history. Our business strategy is targeted toward continuous improvement of our system operations and, given a stable economy, we expect KCS to improve its annual operating ratio in future years.

“Overall, we ended the year having made good progress in maximizing operational efficiency, improving our track and facilities infrastructure and strengthening our balance sheet and capital structure. KCS is well-positioned for continued improvement in these key areas again in 2011.”

GAAP RECONCILIATIONS

($ in millions, except per share amounts)

Reconciliation of Diluted Earnings per Share to     Adjusted Diluted Earnings per Share	Three Months  Ended December 31,
	2010			2009
Diluted earnings per share		$	0.50		$	0.34
Adjustment for debt retirement costs			0.12			—
Adjusted diluted earnings per share (a)		$	0.62		$	0.34
Reconciliation of Diluted Earnings per Share to     Adjusted Diluted Earnings per Share	Years Ended December 31,
	2010			2009
Diluted earnings per share		$	1.67		$	0.60
Adjustment for debt retirement costs			0.44			0.04
Adjusted diluted earnings per share (a)		$	2.11		$	0.64

Reconciliation of Free Cash Flow to Net     Increases (Decreases) in Cash and Cash Equivalents:	Three Months Ended December 31, 2010		Year Ended December 31, 2010
Net cash provided by operating activities	$	136.4	$	496.3
Net cash used for investing activities		(85.8)		(311.5)
Preferred stock dividends paid		(2.8)		(11.0)
Free cash flow - see (b) below		47.8		173.8
Proceeds from issuance of long-term debt		180.0		480.7
Repayment of long-term debt		(177.7)		(839.7)
Other financing activities		(33.5)		153.1
GAAP net increases (decreases) in cash and cash equivalents	$	16.6	$	(32.1)

(a) The Company believes adjusted diluted earnings per share is meaningful as it allows investors to evaluate the Company’s performance for different periods on a more comparable basis by excluding items that do not relate to the ongoing operations of the Company.

(b) The Company believes this measure provides the amount of liquidity generated by operations that can be used for the combination or any one of the following: debt reduction, capital investment and other investments.

CHANGE IN ACCOUNTING PRINCIPLE

Certain prior year amounts have been adjusted for the retrospective change in accounting principle for rail grinding costs.

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 Mexico, 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						Twelve Months
	Ended December 31,						Ended December 31,
	2010			2009			2010			2009
Revenues	$	478.6		$	406.8		$	1,814.8		$	1,480.2
Operating expenses:
Compensation and benefits		97.6			88.3			369.3			328.7
Purchased services		48.2			44.4			189.1			173.7
Fuel		71.9			56.2			263.6			189.4
Equipment costs		39.9			42.0			157.4			164.1
Depreciation and amortization		46.1			42.7			184.9			181.6
Materials and other		39.8			41.0			164.0			175.9
Total operating expenses		343.5			314.6			1,328.3			1,213.4
Operating income		135.1			92.2			486.5			266.8
Equity in net earnings of unconsolidated affiliates		3.5			2.8			19.7			7.7
Interest expense		(35.6	)		(45.3	)		(158.1	)		(173.7	)
Debt retirement costs		(19.0	)		—			(68.3	)		(5.9	)
Foreign exchange gain		1.5			2.7			4.7			2.1
Other income, net		0.8			0.5			4.7			5.2
Income before income taxes and noncontrolling interest		86.3			52.9			289.2			102.2
Income tax expense		30.7			17.7			109.2			34.1
Net income		55.6			35.2			180.0			68.1
Noncontrolling interest		1.0			0.2			(0.2	)		1.0
Net income attributable to Kansas City Southern and subsidiaries		54.6			35.0			180.2			67.1
Preferred stock dividends		2.8			2.7			11.0			11.0
Net income available to common stockholders	$	51.8		$	32.3		$	169.2		$	56.1
Earnings per share:
Basic earnings per share	$	0.51		$	0.34		$	1.69		$	0.60
Diluted earnings per share	$	0.50		$	0.34		$	1.67		$	0.60
Average shares outstanding (in thousands):
Basic		102,175			95,387			100,054			93,145
Potentially dilutive common shares		7,463			527			7,480			504
Diluted		109,638			95,914			107,534			93,649

Kansas City Southern

Revenues & Carloads/Units By Commodity – Fourth Quarter 2010 and 2009

	Revenues						Carloads and Units						Revenue per
	(in millions)						(in thousands)						Carload/Unit
	Fourth Quarter				%		Fourth Quarter				%		Fourth Quarter				%
	2010		2009		Change		2010		2009		Change		2010		2009		Change
Chemical & Petroleum
Agri Chemicals	$	6.1	$	5.8		5%		3.8		4.0		(5%)	$	1,605	$	1,450		11%
Other Chemicals		38.0		35.9		6%		25.1		23.8		5%		1,514		1,508		—
Petroleum		27.3		22.5		21%		17.8		18.0		(1%)		1,534		1,250		23%
Plastics		22.0		19.9		11%		15.2		13.6		12%		1,447		1,463		(1%)
Total		93.4		84.1		11%		61.9		59.4		4%		1,509		1,416		7%
Industrial & Consumer Products
Forest Products		54.2		44.7		21%		33.3		30.6		9%		1,628		1,461		11%
Metals & Scrap		43.3		31.6		37%		29.4		20.6		43%		1,473		1,534		(4%)
Other		16.3		16.4		(1%)		20.5		18.3		12%		795		896		(11%)
Total		113.8		92.7		23%		83.2		69.5		20%		1,368		1,334		3%
Agriculture & Minerals
Grain		54.7		55.2		(1%)		34.1		34.1		—		1,604		1,619		(1%)
Food Products		36.0		31.0		16%		18.5		16.6		11%		1,946		1,867		4%
Ores & Minerals		13.9		10.9		28%		11.6		10.1		15%		1,198		1,079		11%
Stone, Clay & Glass		5.4		5.1		6%		3.0		3.3		(9%)		1,800		1,545		17%
Total		110.0		102.2		8%		67.2		64.1		5%		1,637		1,594		3%
Coal
Unit Coal		55.2		41.6		33%		60.9		65.4		(7%)		906		636		42%
Other Coal		7.5		6.3		19%		10.3		9.2		12%		728		685		6%
Total		62.7		47.9		31%		71.2		74.6		(5%)		881		642		37%
Intermodal		54.3		42.3		28%		186.0		149.7		24%		292		283		3%
Automotive		28.4		20.2		41%		19.3		19.2		1%		1,472		1,052		40%
TOTAL FOR COMMODITY GROUPS		462.6		389.4		19%		488.8		436.5		12%	$	946	$	892		6%
Other Revenue		16.0		17.4		(8%)
TOTAL	$	478.6	$	406.8		18%

Kansas City Southern

Revenues & Carloads/Units By Commodity – Year to Date December 31, 2010 and 2009

	Revenues						Carloads and Units						Revenue per
	(in millions)						(in thousands)						Carload/Unit
	Year to Date				%		Year to Date				%		Year to Date				%
	2010		2009		Change		2010		2009		Change		2010		2009		Change
Chemical & Petroleum
Agri Chemicals	$	23.5	$	22.1		6%		14.9		16.9		(12%)	$	1,577	$	1,308		21%
Other Chemicals		152.2		140.1		9%		100.6		93.7		7%		1,513		1,495		1%
Petroleum		102.9		83.2		24%		72.8		67.9		7%		1,413		1,225		15%
Plastics		84.6		78.0		8%		61.1		59.8		2%		1,385		1,304		6%
Total		363.2		323.4		12%		249.4		238.3		5%		1,456		1,357		7%
Industrial & Consumer Products
Forest Products		202.6		168.7		20%		129.1		118.5		9%		1,569		1,424		10%
Metals & Scrap		158.3		102.1		55%		106.1		71.8		48%		1,492		1,422		5%
Other		65.8		73.6		(11%)		74.7		76.7		(3%)		881		960		(8%)
Total		426.7		344.4		24%		309.9		267.0		16%		1,377		1,290		7%
Agriculture & Minerals
Grain		219.6		195.1		13%		136.6		129.9		5%		1,608		1,502		7%
Food Products		134.7		103.5		30%		71.0		58.8		21%		1,897		1,760		8%
Ores & Minerals		53.6		41.3		30%		47.7		43.7		9%		1,124		945		19%
Stone, Clay & Glass		21.2		20.1		5%		12.8		13.9		(8%)		1,656		1,446		15%
Total		429.1		360.0		19%		268.1		246.3		9%		1,601		1,462		10%
Coal
Unit Coal		207.8		160.2		30%		241.5		262.3		(8%)		860		611		41%
Other Coal		30.8		27.0		14%		41.0		38.9		5%		751		694		8%
Total		238.6		187.2		27%		282.5		301.2		(6%)		845		622		36%
Intermodal		194.2		143.4		35%		678.4		516.4		31%		286		278		3%
Automotive		97.7		52.9		85%		71.1		51.7		38%		1,374		1,023		34%
TOTAL FOR COMMODITY GROUPS		1,749.5		1,411.3		24%		1,859.4		1,620.9		15%	$	941	$	871		8%
Other Revenue		65.3		68.9		(5%)
TOTAL	$	1,814.8	$	1,480.2		23%