54480--4/7/2006--KANSAS_CITY_SOUTHERN

related topics
{operation, international, foreign}
{cost, regulation, environmental}
{operation, natural, condition}
{regulation, government, change}
{cost, operation, labor}
{debt, indebtedness, cash}
{acquisition, growth, future}
{condition, economic, financial}
{financial, litigation, operation}
{regulation, change, law}
Our business strategy, operations and growth rely significantly on joint ventures and other strategic alliances. Our leverage could adversely affect our ability to fulfill obligations under various debt instruments and operate our business. Our business may be adversely affected by changes in general economic, weather or other conditions. Our business is subject to regulation by international, federal, state and local regulatory agencies. Our failure to comply with various federal, state and local regulations could have a material adverse effect on our operations. Our business is subject to environmental, health and safety laws and regulations that could require us to incur material costs or liabilities relating to environmental, health or safety compliance or remediation. Our business is vulnerable to rising fuel costs and disruptions in fuel supplies. Any significant increase in the cost of fuel, or severe disruption of fuel supplies, would have a material adverse effect on our business, results of operations and financial condition. A majority of our employees belong to labor unions. Strikes or work stoppages could adversely affect our operations. Our business may be subject to various claims and lawsuits. Our business may be affected by future acts of terrorism or war. Additional Risk Factors Relating to Our Operations in Mexico The Concession is subject to revocation or termination in certain circumstances. Our ownership of KCSM and operations in Mexico subject us to political and economic risks. Downturns in the U.S. economy or in trade between the U.S. and Mexico and fluctuations in the peso-dollar exchange rate would likely have adverse effects on our business and results of operations.

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