SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
OCTOBER 11, 2002
KANSAS CITY SOUTHERN
(Exact name of company as specified in its charter)
DELAWARE 1-4717 44-0663509
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(State or other jurisdiction (Commission file (IRS Employer
of incorporation) number) Identification Number)
427 WEST 12TH STREET, KANSAS CITY, MISSOURI 64105
(Address of principal executive offices) (Zip Code)
COMPANY'S TELEPHONE NUMBER, INCLUDING AREA CODE:
(816) 983 - 1303
NOT APPLICABLE
(Former name or former address if changed since last report)
ITEM 5. OTHER EVENTS
GRUPO TFM ANNOUNCES FAVORABLE RULING IN VALUE ADDED TAX LAWSUIT
On October 11, 2002, Grupo TMM, S.A. ("Grupo TMM") and Kansas City Southern,
("KCS"), owners of the controlling interest in Grupo Transportacion Ferroviaria
Mexicana, S.A. de C.V. ("Grupo TFM"), announced that a three judge panel of the
Mexican Magistrates Court had unanimously ruled in favor of Grupo TFM in its
Value Added Tax lawsuit. See the attached Press Release for more details.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
EXHIBIT NO. DOCUMENT
(99) Additional Exhibits
99.1 Press Release issued by Kansas City
Southern and Grupo TMM dated October 11,
2002 entitled, "Grupo TFM Announces
Favorable Ruling in Value Added Tax
Lawsuit", is attached hereto as Exhibit
99.1
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Company
has duly caused this Report to be signed on its behalf by the undersigned
hereunto duly authorized.
Kansas City Southern
Date: October 11, 2002 By: /S/ LOUIS G. VAN HORN
-------------------------------------
Louis G. Van Horn
Vice President and Comptroller
(Principal Accounting Officer)
EXHIBIT 99.1
GRUPO TMM COMPANY CONTACT: AT DRESNER CORPORATE SERVICES:
Jacinto Marina, Chief Financial Officer Kristine Walczak (general investors,
011-525-55-629-8790 analysts and media)
(jacinto.marina@tmm.com.mx) 312-726-3600 (kwalczak@dresnerco.com)
Brad Skinner, Senior Vice President
Investor Relations
011-525-55-629-8725
(brad.skinner@tmm.com.mx)
Luis Calvillo, Executive Vice President
And Media Relations
011-525-55-629-8758
(luis.calvillo@tmm.com.mx)
KCS COMPANY CONTACT:
Ronald Russ, Senior Vice President and Chief Financial Officer
816-983-1702
(ronald.g.russ@kcsr.com)
William H. Galligan, Assistant Vice President, Corporate Affairs
816-983-1551
(william.h.galligan@kcsr.com)
FOR IMMEDIATE RELEASE
FRIDAY, OCTOBER 11, 2002
GRUPO TFM ANNOUNCES FAVORABLE RULING
IN VALUE ADDED TAX LAWSUIT
MEXICO CITY, OCTOBER 11, 2002 - GRUPO TMM, S.A. ("GRUPO TMM") (NYSE: TMM) AND
KANSAS CITY SOUTHERN ("KCS") (NYSE: KSU), owners of the controlling interest in
Grupo Transportacion Ferroviaria Mexicana, S.A. de C.V. ("Grupo TFM"), announced
today that a three judge panel of the Mexican Magistrates Court has unanimously
ruled in favor of Grupo TFM in its Value Added Tax lawsuit. The claim dates back
to January 1997. As a result of this decision, Grupo TFM expects to receive a
certificate that may be used against future taxes or, under existing
regulations, may be exchanged for cash. The decision is not subject to appeal by
the government.
In response to the court ruling, Jose Serrano, Chairman and CEO of Grupo TMM and
Grupo TFM said, "The decision of the court affirms that the Rule of Law is alive
and well in Mexico. This ruling is a victory for our country and should serve as
encouragement and validation for all investors throughout the world that the
current Government of Mexico is serious about transparency and adhering to the
laws of the nation."
Michael Haverty, Chairman, CEO and President of KCS stated, "We are pleased with
the fairness of the Mexican judicial system. By removing the uncertainty that
has surrounded the VAT credit issue, the decision of the three judge panel
enhances the opportunity for KCS and Grupo TMM to further grow the value of
their investment through the development of TFM and the NAFTA rail network."
Headquartered in Mexico City, Grupo TMM is Latin America's largest multimodal
transportation company. Through its branch offices and network of subsidiary
companies, Grupo TMM provides a dynamic combination of ocean and land
transportation services. Grupo TMM also has a significant interest in
Transportacion Ferroviaria Mexicana (TFM), which operates Mexico's Northeast
railway and carries over 40 percent of the country's rail cargo. Visit Grupo
TMM's web site at www.grupotmm.com.mx and TFM's web site at www.tfm.com.mx. Both
sites offer Spanish/English language options.
KCS is a transportation holding company that has railroad investments in the
United States, Mexico, and Panama. Its primary holding is Kansas City Southern
Railway. Headquartered in Kansas City, Missouri, KCS serves customers in the
central and south central regions of the U.S. KCS's rail holdings and
investments are primary components of a NAFTA Railway system that links the
commercial and industrial centers of the United States, Canada, and Mexico.
Included in this press release are certain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. Such forward-looking
statements are based on the beliefs of the Companies' managements as well as on
assumptions made. Actual results could differ materially from those included in
such forward-looking statements. Readers are cautioned that all forward-looking
statements involve risks and uncertainty. The following factors could cause
actual results to differ materially from such forward-looking statements:
global, US and Mexican economic and social conditions; the effect of the North
American Free Trade Agreement on the level of US-Mexico trade; the condition of
the world shipping market; the success of the Companies' investment in TFM, S.A.
de C.V. and other new businesses; risks. These risk factors and additional
information are included in Grupo TMM's and KCS' reports on file with the
Securities and Exchange Commission.