comments will XX. I on Slide start everyone. my morning, Good
unit. consisting charge revenue primarily longer a $XX in of freight revenues were up locomotives a and million, of impairment Reported to to business. million Second due due $XX our no per primarily X%, restructuring increased of operating expenses in required X% quarter increase an cars largely
more government's industry the operating negative basis impact impact for XXXX expenses the our slide. that XX.X the will on terminate to operating XXX on a statements on details leading ratio increased rail is fuel to excise review credit quarter. points. adjusted financial a note the operating X% next the the approximately I to beginning XX, April our important It to had Mexican Adjusted tax of for adjusted ratio decision
aside or was tax fuel our performance Setting the for our impacts loss excise adjusted credit, results. negative the reported far than the operating of better
Our adjusted was effective the second tax rate quarter for line XX% the guidance XX.X% to with XX% in provided. we
in we the fuel the XX% range XX% to For our XXXX, to to due be adjusted do full-year taxes. ETR in tax excise been Mexican expect income included of
excise now June, Since the proposed for be fuel we IEPS to in rate be In a to guidance and XXXX, and is XXXX tax be credit eliminated to to of rate longer been XX% XX%, expect additional from Treasury forecasting XX% will be perspective, operating our XXXX the tax in effective no we tax And XX%. the XX% tax Department guilty cash beyond. remainder concerning adjust now XXXX we're XXXX to the expenses. and
largely KCS, And million Treasury we caused we the Reform principles Tax in while paying that will under and concerns taxes XXXX. that has Act solved Department of in up XXXX consequences XXXX $XX believe approximately not intended of were end the still unintended to
to $X.XX, a On charge. was was EPS related an our EPS although adjusted benefit which was we in also reported reduced impact to count. some basis, inclusive a increased and $X.XX restructuring saw operating $X.XX predominantly is due share income, of Finally
the represents operating Slide impacts XQ of fuel Turning to loss through now want credit. adjusted XX, IEPS tax estimated results the the first just In our income. to the I of review column
in of amount XQ The April the the that XX. started revenue And XQ tax build fuel of represents program fuel estimated losing impact second customers the the our May XX. column beginning credit
quarter that recorded an income operating OR. fuel million see, less million revenue credit $X.X the or recorded quarter to can been a excise negative million during revenue had been basis credit excise lost resulting retained. the not point in incremental the we have would $X.X XXX second Offsetting that incremental tax during impact is $XX.X you As in tax the
fuel quarterly for column offset fuel contracts credit $XX.X $XX.X not customers to our tax as including is adjusted you guidance million column rates able XXX% the recover won't attempt future do periods. an a our estimated loss with final until of in some recovery reflects credit some program. who to all-inclusive million, have that of expire. costs The excise loss, final provide be same The be We
income the a $X by not than expect we operating or of the impact from illustrated a As operating in impact tax income quarter, less credit. income net million do fuel to excise lost the material
from OR However, credit moving increased XX since of amount our expense tax into revenue. point essentially the an have fuel create our equal fuel deterioration lost will fuel will an in program approximate fuel expenses excise basis surcharge the
you So moving dynamics the the in was loss here, immaterial aside if set There's a an of result is but do the there operating we credit to operating basis our as impact if revenues. XX considerably the the point takeaways an three and of income, income ratio better, for quarter increase have credit. net into
that expenses our we work, million $XX previous have to reduction reviewed exciting are PSR an savings. or So want saving estimates $XX with XXXX that with XXXX $XX X.Xx At visibility quarter provide to to XXXX into on we quarter more let's time, an approximately for we additional After expense our estimate first of XX. or million On our annually. million annually. that, update an on Slide and now turn had of I initial you. million PSR of call, $XX things you expenses a visibility
in single can seeing in every we're the progress expense category. you As see slide, better
reducing in we by interruptions XX% less particularly have by reduction fuel-efficient by reducing benefits Not of early by reducing the improved benefits we’ve we’re or led of less of of fleet older fleet, locomotives. experiencing a that depreciation size the our reliable XX% Some that from locomotives. initiatives fleet, older interruptions are seeing service XX% And reduced the maintenance the the a reliability mechanical only on and and duration also our to XX% focused shedding resources. fuel service
size beginning or smart AESS also to to such are the we savings minimize used materialize from the as fuel-efficient of gear idling run adoption GE's more time most saving fuel, notch, to HPT and technologies, being to see respect locomotive the for to optimizer right trains With each power trip fuel in train.
fuel efficiency helping running also is by trains. consolidation train longer Additionally,
incur to that expense the savings So pursue in won't restructuring and business. we million transportation streamline predominantly freight service need did as In operations which aggressively charge more we our related develop locomotives and our will $XX plan. of in summary, disposal a to continue a we is more new cars quarter, we
further As we are we plans continue our possible in future only the streamline for our since months charges to develop to is restructuring efforts. it have could six operations, we into
'XX, adjusted XX. Slide XXXX. year-over-year fuel no due change the a in operating in credit income of KCS expenses Quarterly quarter operating credit tax negative increased to obviously $X comp. a in excise X% tax second XXXX XQ Turning but to the laws, generated over thus creating of million in
expense, in the $X $X million savings from X% and and X% a contributed increases network Offsetting year-over-year. due to compensation million Wage foreign the fuel-efficiency, result more and fluid in in led costs savings times exchange of in equipment labor in $X foreign X% increase those an reductions cycle of were increase. improvement million start as Mexico in crew to $X in improve saw $X improvement our a million million to inflation of continue we U.S
$X see as to and with particularly begin make continue new from our will overall or million X%. savings million is quarterly a crew headcount progress Average and approximately compensation and in-sourcing million comp by the service IT XX, PSR, Wage declined increased and $X continue for reductions each we the facility headcount once basis $X inflation points. of benefits benefits our to XX increases. transportation excluding in-sourcing believe But increased to million Slide contributed year in-sourcing finalized. down start in of $X to we plan expense did contractors be FX and and On mechanical
increasing million expense XX. fuel Slide $X to Turning increased Mexico. in to prices due Fuel
fuel As those $X.XX a fuel-efficient XX% in technology gains a prices bar running Mexican using you efficiency GTMs improvements as more and about we increase trains. to continued chart, gallons, did the indicator achieved XQ XXXX, XQ, in to the fewer but have we this same can X% from moving year-ago increases, in see of by $X.XX an increase. quarter Offsetting
Slide on me our briefly priorities. XX, Finally let discuss allocation capital
As nice cash grow, our have buildup invest cash free significant flow enough more we and shareholders. continues will continue a problem. in return business capital to A to our to in to
Our top priority is to continue to invest revenue in our growth. business to generate better
XXXX $XXX reduction two However, reducing to to we are less to our million. capital million due $XXX million guidance $XXX expenditure from than is This factors.
second, our effort growth our PSR investments various to projects reduced improves. program volume freed less adjusting in capital volume than network our on First, and fluidity have the capacity to service environment expected of transportation we're the and finalized is until more predictable as growth. plans. up capacity our realities And We’ve we
XX capacity double-digit ahead the seen we've in will invest we of months. stay to to cross-border our the said, growth last That in continue
we to share buy returns, shareholder authorized our in repurchase by XXXX. $XXX of million August for shares Board As continue program under the
strategy we total shares review to and of quarter, under with allocation capital a program. end the this a our $XX to of Board for before XXX,XXX our shares acceleration, of plans pacing Directors the Management schedule In repurchase the pro are our light of repurchased million ahead rata year. During the authorized of
Pat. to And with that, turn back will it I
