Kansas City Southern revised its 2003 earnings upward to $12.2 million late Tuesday in its annual report filed with the Securities and Exchange Commission. KCS had reported Jan. 29 that it earned $11.2 million in 2003, including estimated losses for Grupo TFM, its Mexican joint venture railroad. Tax adjustments at Grupo TFM accounted for most of the $1 million change, the company said.

Overall, KCS said TFM subtracted $2.8 million from KC Southern's bottom line in 2003, compared with a $31.1 million contribution in 2002.

As a result of the revision, KCS also revised its earnings per share upward from 8 cents to 10 cents, the company said. In 2002, the company reported earnings of $57.2 million, or 91 cents a share.

KCS also said in the filing that it would renew its request for Mexican government approval of its disputed purchase of TFM stock owned by its Mexican partner, Grupo TMM.

An international arbitration panel has ruled that the purchase agreement between KCS and Grupo TMM, remains in effect despite TMM's effort to cancel it.

In April 2003, KCS said it would change its name to Nafta Rail, buy out Grupo TMM's interest in TFM and remain based in Kansas City.

Through the TFM deal, a subsidiary of Grupo TMM was to receive 18 million shares of Nafta Rail, representing about 22 percent of the company, as well as $200 million in cash and a potential incentive payment of $100 million to $180 million based on the resolution of certain issues.

KCS ranks No. 16 on The Business Journal's list of area public companies.