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):
                                 January 24, 2001


                       KANSAS CITY SOUTHERN INDUSTRIES, INC.
                       -------------------------------------
                (Exact name of company as specified in its charter)


       DELAWARE                  1-4717                   44-0663509
---------------------         -------------           -------------------
(State or other jurisdiction  (Commission file           (IRS Employer
   of incorporation)             number)              Identification Number)


                 114 West 11th 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)









<PAGE>





Item 9. Regulation FD Disclosure

Following the close of the New York Stock  Exchange on January 24, 2001,  Kansas
City Southern  Industries,  Inc.  ("KCSI" or  "Company")  issued a press release
announcing  its  fourth  quarter  and year to date 2000  operating  results.  On
January 25, 2001,  the Company held its fourth quarter  presentation,  which was
available to shareholders and other interested parties via telephone or the KCSI
web site at  http://www.kcsi.com.  Interested  parties  may hear a replay of our
fourth quarter presentation by calling 1-719-457-0820,  code #550233. The replay
will be available for one week following the presentation.  The slides presented
at the  presentation  are  available at  http://www.kcsi.com  by  selecting  the
analyst  presentation option under the "For Investor - KSU Stock" section of our
web site. The press release,  included as Exhibit 99.1 hereto, and certain other
information  distributed at the  presentation,  included as exhibit 99.2 hereto,
are being  furnished under Item 9 of this Current Report on Form 8-K pursuant to
Regulation  FD. The  information  in this report  (including  the  exhibits)  is
furnished pursuant to Item 9 and shall not be deemed to be filed.

Item 7.     Financial Statements and Exhibits

(c)         Exhibits

            Exhibit No.                         Document
            (99)                                Additional Exhibits

            99.1                                Press Release issued by Kansas
                                                City Southern Industries, Inc.
                                                dated January 24, 2001 entitled,
                                                "Kansas City Southern Industries
                                                Reports Improved Fourth Quarter
                                                and Year to Date Income from
                                                Continuing Operations", is
                                                attached hereto as Exhibit 99.1


            99.2                                The following schedules are
                                                attached hereto as Exhibit 99.2-
                                                Combined Kansas City Southern
                                                Railway and Gateway Western
                                                Operating Statements, Combined
                                                Kansas City Southern
                                                Railway/Gateway Western
                                                Carloadings by Commodity and
                                                Kansas City Southern Industries,
                                                Inc. Preliminary Consolidated
                                                Balance Sheets

<PAGE>

















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 Industries, Inc.


Date: January 26, 2001                      By: /s/  Louis G. Van Horn
                                               ----------------------------
                                                    Louis G. Van Horn
                                             Vice President and Controller
                                                (Principal Accounting Officer)


<PAGE>
EXHIBIT 99.1                                              Date: January 24, 2001

Kansas City Southern                             Media Contact: William Galligan
Industries, Inc.                                                816-983-1551
114 West 11th Street
Kansas City, MO 64105

NYSE Symbol: KSU

       Kansas City Southern Industries Reports Improved Fourth Quarter and
                 Year to Date Income From Continuing Operations

Earnings Analysis and Commentary

Kansas City Southern  Industries,  Inc. ("KCSI",  "the Company") reported fourth
quarter  2000 income from  continuing  operations  of $3.6  million (6 cents per
diluted  share)  compared to a loss of $7.2 million (13 cents per diluted share)
in the fourth quarter of 1999. This $10.8 million improvement resulted primarily
from an  increase  in U.S.  operating  income of $6.8  million,  a $6.1  million
increase  in  equity  earnings  related  to  Grupo  Transportacion   Ferroviaria
Mexicana, S.A. de C.V. ("Grupo TFM"), and a decrease in interest expense of $2.5
million,   somewhat  offset  by  a  decline  in  income  tax  benefits.   KCSI's
consolidated  fourth quarter 2000 revenue  decline of $16.9 million  (11.1%) was
more than offset by a $23.7 million reduction in operating  expenses,  resulting
in improved  operating  income.  Fourth  quarter 1999 included  $12.8 million of
non-recurring  unusual  costs and  expenses.  Excluding  these  costs from 1999,
fourth quarter 2000 operating  expenses  declined $10.9 million or 8.2% compared
to prior year.

For the year ended December 31, 2000, income from continuing operations,  before
extraordinary  items,  increased  $15.2 million (149%) to $25.4  million,  or 43
cents per diluted share, from $10.2 million,  or 17 cents per diluted share, for
the year ended  December 31, 1999. A $20.1 million  increase in equity  earnings
from Grupo TFM and a $5.3 million  decrease in the income tax  provision for the
year  ended  December  31,  2000 were  partially  offset  by a  decline  in U.S.
operating  income of $1.0  million and an  increase in interest  expense of $8.4
million.  Consolidated  revenues  declined  4.9%  while  consolidated  operating
expenses  declined 5.2% for the twelve  months ended  December 31, 2000 compared
with 1999.  Excluding  the impact of unusual costs and expenses  experienced  in
fourth quarter 1999, year to date 2000 consolidated  operating expenses declined
2.9% compared to 1999.

During  January  2000,  the  Company   re-capitalized   its  debt  structure  in
anticipation of the Spin-off of Stilwell Financial,  which was completed in July
2000, and in September 2000 also  refinanced $200 million of bank debt with $200
million of 8-year senior unsecured notes. In connection with these  transactions
KCSI recorded extraordinary debt retirement costs of approximately $7.0 million,
(net of income taxes). Additionally, during the third quarter of 2000, Grupo TFM
refinanced $300 million of bank debt with a U.S. Commercial Paper program. Total
KCSI and Grupo TFM debt retirement related  extraordinary  charges for 2000 were
$8.7 million, or 15 cents per diluted share, net of income taxes.

DILUTED EARNINGS PER SHARE AND COMMON SHARES COMPARISONS
<TABLE>
<S>                                   <C>         C>           <C>        <C>
                                      Fourth Quarter            Year to Date
                                      --------------            ------------
                                      2000       1999          2000      1999
                                      ----       ----          ----      ----
Income from continuing operations:
  U.S. operations                    $0.10      $0.13         $0.41     $0.50
  Grupo TFM and associated interest  (0.04)     (0.12)         0.02     (0.19)
  Non-recurring unusual costs &       -         (0.14)         -        (0.14)
    expenses                        ------    -------        ------     ------

  Income (loss) from continuing       0.06      (0.13)         0.43      0.17
operations
Extraordinary debt retirement costs   -          -            (0.15)     -
                                    ------    -------        ------     ------
   Total diluted earnings (loss)
    per share from continuing
    operations, adjusted for
    extraordinary items               0.06      (0.13)         $0.28    $0.17
                                    ======     ======         ======   ======


Weighted Average Diluted
   Common Shares Outstanding        59,839     55,270         58,390   57,025
   (thousands)(1)
</TABLE>
<PAGE>
(1) KCSI stockholders  previously  approved a reverse split of KCSI Common stock
that became  effective upon completion of the Spin-off.  As discussed above, the
Spin-off  occurred  on July 12, 2000 and,  accordingly,  at the close of the New
York Stock  Exchange on July 12, 2000,  each two shares of KCSI Common stock was
converted to one share of KCSI Common  stock.  All periods  presented  have been
restated to reflect this reverse split.

Following  the Spin-off of Stilwell  from the Company on July 12, 2000,  KCSI is
comprised of, among others,  The Kansas City Southern Railway Company  ("KCSR"),
Gateway Western Railway Company  ("Gateway  Western") and equity  investments in
Grupo TFM and Mexrail, Inc.

Fourth Quarter
KCSI reported  income from  continuing  operations of $3.6 million for the three
months  ended  December  31, 2000  compared to a loss of $7.2  million in fourth
quarter 1999.

KCSI's  consolidated  fourth quarter 2000 revenues totaled $134.8 million versus
$151.7  million in fourth  quarter  1999.  This $16.9 million  (11.1%)  decrease
resulted  primarily  from  lower  combined   KCSR/Gateway  Western  revenues  of
approximately  $15.9 million.  While revenue  growth was  experienced in certain
product sectors including  plastics,  automotive,  food products and metal/scrap
shipments,  most commodities  showed weakness in the fourth quarter on a decline
in carload  volumes.  As the general U.S. economy slowed in fourth quarter 2000,
industrial  production and manufacturing  also retracted leading to a decline in
demand for product  shipments.  Unit coal revenues were particularly lower (28%)
as a major customer  reduced coal  deliveries in fourth quarter 2000 to decrease
inventory stockpiles.

KCSI's consolidated operating costs and expenses decreased $23.7 million (16.2%)
in the fourth  quarter of 2000  compared to the fourth  quarter of 1999.  Fourth
quarter 1999 included  $12.8  million of unusual costs and expenses  reflecting,
among others,  amounts for facility and project closures,  employee separations,
spin-off  related costs,  labor and personal  injury related  issues.  Excluding
these costs from 1999,  fourth  quarter  2000  operating  costs  declined  $10.9
million compared to adjusted fourth quarter 1999.  Fourth quarter 2000 operating
costs declined,  in spite of diesel fuel costs,  which rose approximately 30% in
the fourth quarter of 2000 compared to fourth quarter 1999, and higher  casualty
costs.   Overall   operating   costs  declined   primarily  due  to  operational
efficiencies,  cost  containment  efforts  and  gains on the  sale of  operating
property at KCSR and Gateway Western.  These  operational  improvements led to a
quarter over  quarter  decrease in salaries  and wages,  car hire and  purchased
services.  Revenue  declines,  however,  resulted  in  increasing  the  combined
KCSR/Gateway  Western  operating ratio for fourth quarter 2000 to 88.7% compared
to 85.7% in the same 1999 period, excluding unusual costs and expenses.

Equity  earnings  related to the  Company's  investment in Grupo TFM improved to
$2.8  million for fourth  quarter  2000 versus a loss of $3.3  million in fourth
quarter 1999.  Grupo TFM revenues  improved 18% to $165.4 million for the fourth
quarter of 2000 from $140.7 million for the fourth quarter of 1999. These higher
revenues  were  partially  offset by an  approximate  21%  increase in operating
expenses  arising  primarily  from higher fuel costs and costs due to  increased
traffic volumes.  Despite the impact of these higher operating costs,  operating
income rose  approximately 5% quarter to quarter.  The operating ratio increased
to 78.6% in the fourth  quarter of 2000  versus  77.1% in the fourth  quarter of
1999. Additionally, fourth quarter 2000 results included a $0.3 million deferred
tax expense  (calculated under U.S. generally accepted  accounting  principles -
"U.S.  GAAP") versus a deferred tax expense of $16.5  million in fourth  quarter
1999, which was caused by a significant  change in the peso exchange rate at the
end of 1999.  The Company  reports its equity in Grupo TFM under U.S. GAAP while
Grupo TFM reports under International Accounting Standards.

KCSI interest  expense in the fourth quarter of 2000 declined 18% from the prior
year  quarter.  Increased  interest  expense  due to higher  interest  rates and
amortization  of debt  issuance  costs  associated  with the  January  2000 debt
re-capitalization was more than offset by a benefit related to the adjustment of
interest expense on anticipated tax deficiency items.

Year to Date
The Company's income from continuing  operations before  extraordinary items for
the twelve months ended  December 31, 2000 totaled  $25.4  million  versus $10.2
million  in the same  1999  period  (a 149%  improvement).  KCSI's  consolidated
revenues  declined  approximately  4.9%, while operating  expenses declined 5.2%
period to period.

Year to date combined  KCSR/Gateway  Western  revenues  decreased  $22.5 million
primarily as a result of declines in coal, export grain,  chemical/petroleum and
haulage revenues. These declines were partially offset by increases in paper and
forest products and intermodal/automotive  revenues. Excluding the unusual costs
and expenses in fourth quarter 1999,  combined  KCSR/Gateway  Western  operating
costs decreased  approximately  $6.1 million period to period.  Lower costs were
experienced  in salaries & wages,  material & supplies and car hire,  along with
the impact of gains on sales of operating property.  Fuel costs,  however,  rose
40% in 2000  compared to 1999 on a 64%  increase in average  diesel fuel prices.
The combined  KCSR/Gateway  Western operating ratio was 87.3% for the year ended
December  31,  2000  compared  to 85.1% for the year ended  December  31,  1999,
excluding unusual costs and expenses in 1999.
<PAGE>
Excluding  the  impact of the Grupo TFM  extraordinary  item  recorded  in third
quarter 2000, equity earnings from Grupo TFM improved $20.1 million for the year
ended  December 31, 2000  compared to the year ended  December  31, 1999.  Grupo
TFM's revenues increased 22% period to period,  while operating income increased
nearly 34% resulting in an operating  ratio of 74.0% for the year ended December
31, 2000 compared to 76.6% for 1999.  Under U.S.  GAAP, the deferred tax benefit
for Grupo TFM was $13.2 million (excluding the impact of the extraordinary item)
for the twelve months ended December 31, 2000 compared to a deferred tax expense
of $11.5 million in 1999.

BUSINESS OUTLOOK
Michael R. Haverty, KCSI Chairman,  President and Chief Executive Officer, said,
"While we  experienced  the revenue  effects of an economic  slowdown  and a 28%
reduction in our unit coal revenues in fourth  quarter 2000, we are pleased with
our  efforts to contain  operating  costs.  We  believe we have  established  an
effective  operating cost structure that will prove  beneficial as we anticipate
the return to revenue  growth on our U.S.  properties in 2001. In addition,  the
ongoing  success of our  investment  in Grupo TFM is a  validation  of our NAFTA
railway strategy.

The  incredible  growth story at Grupo TFM  continues as revenues and  operating
profit for 2000 have increased nearly 22% and 34%, respectively. Equity earnings
from Grupo TFM have  increased  $20.1  million this year over last year and have
been a significant  contributor to our income from continuing  operations during
2000.  We  continue  to  believe  that the best is yet to come with our  Mexican
investment in Grupo TFM as it realizes its potential as the rail  transportation
leader in NAFTA traffic for the North American marketplace.

Over the course of 2000,  we  significantly  improved  the  efficiency  and cost
structure  of our  U.S.  railroad  operations.  As  anticipated  revenue  growth
materializes,  this improved cost structure will produce improved profitability.
We have  seen  diesel  fuel  price  increases  in  2000,  which  have  not  been
experienced in many years. We effectively  managed our exposure to dramatic fuel
cost increases by aggressively  focusing on improved locomotive  efficiency.  We
believe  our  improvement  in  fuel  efficiency  through  the  lease  of 50  new
fuel-efficient   locomotives  in  late  1999  as  well  as  an  aggressive  fuel
conservation  program  initiated  in  mid-1999  demonstrated  its impact on fuel
costs. Additionally,  we continue to experience lower salaries and wages through
the  reduction  of the amount of overtime  hours worked and the number of relief
train crews used as well as a reduction in total employee count.

Domestically we were adversely affected by a fourth quarter economic slowdown, a
significant  reduction  in  coal  shipments  by  our  largest  customer,  highly
competitive rate pressures and high interest costs.

As we look to 2001,  we  envision  continued  success in Mexico  with Grupo TFM,
increasing  revenues and profitability for our U.S.  operations as we regain our
coal traffic and increase  automotive  and chemical  traffic,  the re-opening of
commercial  service on the Panama  Canal  Railway  and an  emphasis  on reducing
corporate  debt  throughout  the year.  KCSI  management  continues  its  strong
commitment  toward maximizing the potential of the NAFTA franchise and enhancing
shareholder value."


This press  release  includes  statements  concerning  potential  future  events
involving  the  Company,  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 KCSI's  December 31, 1999 Form 10-K,  the Current
Report on Form  8-K/A  dated June 3, 1997,  each filed by the  Company  with the
Securities and Exchange  Commission  (Commission  file no. 1-4717).  The Company
will not update any forward-looking  statements in this press release to reflect
future events or developments.

                        (Financial Information Attached)




<PAGE>

                 KANSAS CITY SOUTHERN INDUSTRIES, INC. and SUBSIDIARY
                                    COMPANIES
                          (excludes Stilwell Financial Inc.)
                     CONSOLIDATED CONDENSED STATEMENTS OF INCOME
                     (dollars in millions, except per share data)
                                   (Unaudited)

<TABLE>
<S>                                           <C>      <C>        <C>      <C>
                                             Three Months        Twelve Months
                                          Ended December 31,   Ended December 31,
                                          -----------------     ----------------
                                            2000      1999       2000     1999
                                           -------   -------    -------  -------

    Revenues                               $134.8    $151.7     $572.2   $601.4

    Costs and
    expenses                                108.9     132.4      453.0    480.4
    Depreciation and
    amortization                             13.7      13.9       56.1     56.9
                                           -------   -------    -------  -------

    Operating income                         12.2       5.4       63.1     64.1


    Equity in net earnings of unconsolidated affiliates:
     Grupo Transportacion Ferroviaria
    Mexicana, S.A. de C.V. (estimated)        2.8      (3.3)      21.6      1.5
     Other                                   (1.1)      0.2        2.2      3.7
    Interest expense                        (11.6)    (14.1)     (65.8)   (57.4)
    Other, net                                1.2       2.1        6.0      5.3
                                           -------   -------    -------  -------

    Pretax income (loss)                      3.5      (9.7)      27.1     17.2

    Income tax provision (benefit)           (0.1)     (2.5)       1.7      7.0
                                           -------   -------    -------  -------

    Income (loss) from
    continuing operations                     3.6      (7.2)      25.4     10.2
    Extraordinary items,
    net of tax:
      Debt retirement costs - KCSR/KCSI       -        -          (7.0)     -
      Debt retirement costs - TFM             -        -          (1.7)     -
                                           -------   -------    -------  -------
    Income (loss) from continuing
    operations, net extraordinary items     $ 3.6     $(7.2)    $ 16.7   $ 10.2
                                           =======  =======     =======  =======

    Per Share Data:

    Basic earnings (loss) per Common
     Share from continuing operations       $0.06    $(0.13)    $ 0.44   $ 0.18
    Basic earnings (loss) per Common
     Share - extraordinary items                -        -       (0.15)       -
                                           -------   -------    -------  ------
    Basic earnings (loss) per Common
     Share, net of extraordinary items       0.06     (0.13)      0.29     0.18
                                           =======  =======     =======  =======

    Weighted Average Common shares
    outstanding (in thousands)             58,132    55,270     56,650   55,142
                                           -------   -------    -------  -------

    Diluted earnings (loss) per Common
     Share from continuing operations      $ 0.06    $(0.13)    $ 0.43   $ 0.17
    Diluted earnings (loss) per Common
     Share - extraordinary items                 -        -      (0.15)       -
                                           -------   -------    -------  -------
    Diluted earnings (loss) per Common
     Share, net of extraordinary items     $ 0.06    $(0.13)    $ 0.28   $ 0.17
                                           =======  =======     =======  =======

    Diluted Common shares outstanding
     (in thousands)                        59,839    55,270     58,390   57,025
                                           -------   -------    -------  -------
</TABLE>
<PAGE>
EXHIBIT 99.2

Combined KCSR and Gateway Western
Operating Statements
Dollars in Millions
<TABLE>
<S>                                <C>          <C>            <C>           <C>
                                 Fourth        Fourth         Twelve        Twelve
                                Quarter       Quarter         Months        Months
                                  2000         1999 *          2000         1999 *
                              ------------- -------------   ------------ -------------
Revenues
 Freight Revenue                  $   82.3      $   86.6      $   347.6      $  355.0
 Intermodal and Automotive Revenue    16.0          16.0           63.0          59.1
 Unit Coal Revenue                    22.2          30.7          103.6         116.3
 Other Revenue                        11.8          14.9           48.9          55.2
                              ------------- -------------   ------------ -------------
      Total Revenues                 132.3         148.2          563.1         585.6
                              ------------- -------------   ------------ -------------

Operating Expenses
    Salaries & Wages                  35.6          39.0          139.3         146.6
    Fringe Benefits                   11.3          13.2           52.6          53.1
    Fuel                              12.8           9.8           48.1          34.2
    Material and Supplies              6.9           8.6           30.5          35.1
    Car Hire                           3.7           6.0           14.8          22.4
    Purchased Services                12.0          16.0           47.9          51.7
    Casualties & Insurance             9.5           9.3           34.0          30.6
    Other                             (2.4)          9.0            3.6          19.7
                              ------------- -------------   ------------ -------------
      Net Operating Expenses          89.4         110.9          370.8         393.4
                              ------------- -------------   ------------ -------------

Fixed Expenses
    Leases, Net                       13.1          12.0           55.6          52.0
    Depreciation                      12.7          12.9           52.1          50.0
    Taxes (Other Than Income)          2.1           4.0           13.3          15.3
                              ------------- -------------   ------------ -------------
      Total Fixed Expenses            27.9          28.9          121.0         117.3
                              ------------- -------------   ------------ -------------
    Total Expenses                   117.3         139.8          491.8         510.7
                              ------------- -------------   ------------ -------------
Operating Income                      15.0           8.4           71.3          74.9

</TABLE>


*  Includes $12.8 million of non-recurring costs and expenses



<PAGE>
Combined Kansas City Southern Railway/Gateway Western
Carloadings By Commodity - Year Ended December 31, 2000
Dollars in Thousands
<TABLE>
<S>          <C>          <C>           <C>                    <C>       <C>       <C>

          Carloadings                                                 Revenue

          Year ended       %                                          Year ended     %
----------------------                                        --------------------
  1999         2000     Change                                  1999     2000     Change
----------   ---------  --------                              -------- ---------  --------

                                      Coal
  197,347     180,949    (8.3)%         Unit Coal             116,314   103,617    (10.9)%
    3,486       3,216    (7.7)%         Other Coal              1,054     1,342     27.3%
----------   ---------                                        -------- ---------
  200,833     184,165    (8.3)%                               117,368   104,959    (10.6)%

                                     Chemical & Petroleum Products
   25,841      26,276      1.7%         Plastics               23,968    24,665      2.9%
   72,408      68,048     (6.0)%         Misc. Chemicals       67,478    65,198     (3.4)%
    4,970       1,813     (63.5)%        Soda Ash               5,765     2,007    (65.2)%
   35,361      33,139     (6.3)%         Petro Products        25,010    24,426     (2.3)%
   26,924      24,848     (7.7)%         Petro Coke            10,523    10,017     (4.8)%
----------   ---------                                        -------- ---------
  165,504     154,124     (6.9)%                 Total         132,744   126,313    (4.8)%
----------   ---------                                        -------- ---------

                                     Agriculture and
                                    Minerals
   50,236      49,201    (2.1)%         Domestic Grain         36,665    36,898      0.6%
   14,439      11,060   (23.4)%         Export Grain           11,159     8,109    (27.3)%
   32,373      29,458    (9.0)%         Food/Kindred           23,030    23,744      3.1%
                                    Products
   26,036      25,528    (2.0)%         Ores and Minerals      13,542    13,256     (2.1)%
   17,850      16,721    (6.3)%         Stone, Clay & Glass    12,737    12,332     (3.2)%
   26,309      25,100    (4.6)%         Metal/Scrap            15,831    19,275     21.8%
   11,711       7,620   (34.9)%         Military/Other         10,131     7,993    (21.1)%
                                    Carloads
----------   ---------                                        -------- ---------
  178,954     164,688    (8.0)%                 Total         123,095   121,607    (1.2)%
----------   ---------                                        -------- ---------

                                     Paper & Forest
                                    Products
   92,541      90,577    (2.1)%         Pulp/Paper             62,086    63,344      2.0%
    7,790       7,181    (7.8)%         Scrap Paper             3,944     3,912     (0.8)%
   39,527      33,675   (14.8)%         Pulpwood/Logs/Chips    15,155    13,439    (11.3)%
   27,983      28,291     1.1%          Lumber/Plywood         23,840    24,933      4.6%
----------   ---------                                        -------- ---------
  167,841     159,724    (4.8)%                 Total         105,025   105,628      0.6%
----------   ---------                                        -------- ---------

                                     Intermodal & All Other Carloads
    7,987      21,655    171.1%         Automotive              7,487    13,351     78.3%
  222,981     247,604     11.0%         Intermodal             51,599    49,622     (3.8)%
----------   ---------                                        -------- ---------
  230,968     269,259     16.6%                 Total          59,086    62,973      6.6%
----------   ---------                                        -------- ---------

  944,100     931,960     (1.3)%     TOTAL FOR BUSINESS UNITS 537,318   521,480     (2.9)%

   43,586      32,607    (25.2)%     Haulage                   16,779    11,614    (30.8)%

   (8,231)     (8,561)     4.0%     Adjustments                (6,923)   (7,289)     5.3%
----------   ---------                                        -------- ---------

  979,455     956,006     (2.4)%              TOTAL           547,174   525,805     (3.9)%
==========   =========                                        ======== =========
</TABLE>
<PAGE>
Combined Kansas City Southern Railway/Gateway Western
Carloadings By Commodity - Fourth Quarter 2000
Dollars in Thousands

             Carloadings                                                 Revenue
<TABLE>
          Fourth Quarter    %                                      Fourth Quarter   %
<S>           <C>        <C>                <C>                 <C>       <C>       <C>

-------------------------                                      --------------------
  1999        2000       Change                                  1999      2000    Change
----------   --------    --------                              --------  --------  --------

                                      Coal
   49,306     39,451     (20.0)%         Unit Coal              30,654    22,211   (27.5)%
      664        914      37.7%          Other Coal                201       477   137.3%
----------   --------                                          --------  --------
   49,970     40,365     (19.2)%                                30,855    22,688   (26.5)%

                                       Chemical & Petroleum Products
    6,102      6,466        6.0%          Plastics               5,635     6,486    15.1%
   17,868     16,098      (9.9)%          Misc. Chemicals       16,906    15,174   (10.2)%
      902        436     (51.7)%          Soda Ash                 994       472   (52.5)%
    8,398      7,455     (11.2)%          Petro Products         5,927     5,562    (6.2)%
    5,967      6,152        3.1%          Petro Coke             2,533     2,283    (9.9)%
----------   --------                                          --------  --------
   39,237     36,607      (6.7)%                 Total          31,995    29,977    (6.3)%

                                       Agriculture and
                                       Minerals
   12,657     10,993     (13.1)%          Domestic Grain         9,450     8,831    (6.6)%
    3,210      2,674     (16.7)%          Export Grain           2,109     2,177     3.2%
    7,706      7,194      (6.6)%          Food/Kindred Products  5,450     5,958     9.3%
    6,778      5,510     (18.7)%          Ores and Minerals      3,543     3,149   (11.1)%
    4,215      3,796      (9.9)%          Stone, Clay & Glass    3,148     2,803   (11.0)%
    8,221      5,581     (32.1)%          Metal/Scrap            3,908     4,361    11.6%
    2,355      1,660     (29.5)%          Military/Other
                                             Carloads            2,015     1,797   (10.8)%
----------   --------                                          --------  --------
   45,142     37,408     (17.1)%                 Total          29,623    29,076    (1.8)%
----------   --------                                          --------  --------

                                       Paper & Forest Products
   23,082     21,603      (6.4)%          Pulp/Paper            15,728    15,240    (3.1)%
    2,130      1,938      (9.0)%          Scrap Paper            1,085     1,055    (2.8)%
    9,577      7,637     (20.3)%       Pulpwood/Logs/Chips       3,795     3,103   (18.2)%
    6,979      6,603      (5.4)%          Lumber/Plywood         5,984     5,796    (3.1)%
----------   --------                                          --------  --------
   41,768     37,781      (9.5)%                 Total          26,592    25,194    (5.3)%
----------   --------                                          --------  --------

                                       Intermodal & Automotive
    2,030      6,668      228.5%          Automotive             2,855     3,959    38.7%
   57,232     67,926       18.7%          Intermodal            13,215    12,005    (9.2)%
----------   --------                                          --------  --------
   59,262     74,594       25.9%                 Total          16,070    15,964    (0.7)%
----------   --------                                          --------  --------

  235,379    226,755      (3.7)%      TOTAL FOR BUSINESS UNITS 135,135   122,899    (9.1)%

   10,429      6,319     (39.4)%       Haulage                   3,846     3,324   (13.6)%
   (2,450)    (2,721)     11.1%        Adjustments              (1,786)   (2,385)   33.5%
----------   --------                                          --------  --------

  243,358    230,353      (5.3)%               TOTAL           137,195   123,838    (9.7)%
==========   ========                                          ========  ========

</TABLE>
<PAGE>
Kansas City Southern Industries, Inc.
                                                                ----------------
Consolidated Balance Sheets                                       PRELIMINARY
                                                                ----------------
Unaudited
(Dollars in Millions)
<TABLE>
<S>                                                <C>                 <C>

                                          December 31, 2000    December 31, 1999
                                          -----------------    -----------------

Assets
  Cash                                         $      21.5          $      11.9
  Accounts receivable                                142.0                132.2
  Inventories                                         34.0                 40.6
  Other current assets                                40.3                 23.8
                                          -----------------     ----------------
     Total current assets                            237.8                208.5

  Investments held for operating purposes            358.2                337.1
  Properties, net of depreciation                  1,327.8              1,277.4
  Other assets                                        42.1                 34.4
                                          -----------------     ----------------

      Total assets                            $    1,965.9         $    1,857.4
                                          =================     ================

Liabilities and Stockholders' Equity
  Current portion of long-term debt            $      36.2          $      10.9
  Accounts payable                                    58.3                 74.8
  Accrued liabilities                                156.3                168.5
                                          -----------------     ----------------
     Total current liabilities                       250.8                254.2

  Long-term debt                                     638.4                750.0
  Deferred income taxes                              357.1                297.4
  Other                                               76.2                 87.3
  Stockholders' equity                               643.4                468.5
                                          -----------------     ----------------

    Total liabilities and stockholders'       $    1,965.9         $    1,857.4
       equity                             =================     ================
</TABLE>
[{"type": "8-K", "sequence": "1", "filename": "0001.txt", "secsgml_size_bytes": 38413}]
{"company-data": {"conformed-name": "KANSAS CITY SOUTHERN INDUSTRIES INC", "cik": "0000054480", "assigned-sic": "4011", "irs-number": "440663509", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-04717", "film-number": "1516878"}, "business-address": {"street1": "114 W 11TH ST", "city": "KANSAS CITY", "state": "MO", "zip": "64105", "phone": "8169831303"}, "mail-address": {"street1": "114 WEST 11TH STREET", "city": "KANSAS CITY", "state": "MO", "zip": "64105"}}
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):
                                 January 24, 2001

                       KANSAS CITY SOUTHERN INDUSTRIES, INC.
                       -------------------------------------
                (Exact name of company as specified in its charter)

       DELAWARE                  1-4717                   44-0663509
---------------------         -------------           -------------------
(State or other jurisdiction  (Commission file           (IRS Employer
   of incorporation)             number)              Identification Number)

                 114 West 11th 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 9. Regulation FD Disclosure

Following the close of the New York Stock  Exchange on January 24, 2001,  Kansas
City Southern  Industries,  Inc.  ("KCSI" or  "Company")  issued a press release
announcing  its  fourth  quarter  and year to date 2000  operating  results.  On
January 25, 2001,  the Company held its fourth quarter  presentation,  which was
available to shareholders and other interested parties via telephone or the KCSI
web site at  http://www.kcsi.com.  Interested  parties  may hear a replay of our
fourth quarter presentation by calling 1-719-457-0820,  code #550233. The replay
will be available for one week following the presentation.  The slides presented
at the  presentation  are  available at  http://www.kcsi.com  by  selecting  the
analyst  presentation option under the "For Investor - KSU Stock" section of our
web site. The press release,  included as Exhibit 99.1 hereto, and certain other
information  distributed at the  presentation,  included as exhibit 99.2 hereto,
are being  furnished under Item 9 of this Current Report on Form 8-K pursuant to
Regulation  FD. The  information  in this report  (including  the  exhibits)  is
furnished pursuant to Item 9 and shall not be deemed to be filed.

Item 7.     Financial Statements and Exhibits

(c)         Exhibits

            Exhibit No.                         Document
            (99)                                Additional Exhibits

            99.1                                Press Release issued by Kansas
                                                City Southern Industries, Inc.
                                                dated January 24, 2001 entitled,
                                                "Kansas City Southern Industries
                                                Reports Improved Fourth Quarter
                                                and Year to Date Income from
                                                Continuing Operations", is
                                                attached hereto as Exhibit 99.1

            99.2                                The following schedules are
                                                attached hereto as Exhibit 99.2-
                                                Combined Kansas City Southern
                                                Railway and Gateway Western
                                                Operating Statements, Combined
                                                Kansas City Southern
                                                Railway/Gateway Western
                                                Carloadings by Commodity and
                                                Kansas City Southern Industries,
                                                Inc. Preliminary Consolidated
                                                Balance Sheets
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 Industries, Inc.

Date: January 26, 2001                      By: /s/  Louis G. Van Horn
                                               ----------------------------
                                                    Louis G. Van Horn
                                             Vice President and Controller
                                                (Principal Accounting Officer)
EXHIBIT 99.1                                              Date: January 24, 2001

Kansas City Southern                             Media Contact: William Galligan
Industries, Inc.                                                816-983-1551
114 West 11th Street
Kansas City, MO 64105

NYSE Symbol: KSU

       Kansas City Southern Industries Reports Improved Fourth Quarter and
                 Year to Date Income From Continuing Operations

Earnings Analysis and Commentary

Kansas City Southern  Industries,  Inc. ("KCSI",  "the Company") reported fourth
quarter  2000 income from  continuing  operations  of $3.6  million (6 cents per
diluted  share)  compared to a loss of $7.2 million (13 cents per diluted share)
in the fourth quarter of 1999. This $10.8 million improvement resulted primarily
from an  increase  in U.S.  operating  income of $6.8  million,  a $6.1  million
increase  in  equity  earnings  related  to  Grupo  Transportacion   Ferroviaria
Mexicana, S.A. de C.V. ("Grupo TFM"), and a decrease in interest expense of $2.5
million,   somewhat  offset  by  a  decline  in  income  tax  benefits.   KCSI's
consolidated  fourth quarter 2000 revenue  decline of $16.9 million  (11.1%) was
more than offset by a $23.7 million reduction in operating  expenses,  resulting
in improved  operating  income.  Fourth  quarter 1999 included  $12.8 million of
non-recurring  unusual  costs and  expenses.  Excluding  these  costs from 1999,
fourth quarter 2000 operating  expenses  declined $10.9 million or 8.2% compared
to prior year.

For the year ended December 31, 2000, income from continuing operations,  before
extraordinary  items,  increased  $15.2 million (149%) to $25.4  million,  or 43
cents per diluted share, from $10.2 million,  or 17 cents per diluted share, for
the year ended  December 31, 1999. A $20.1 million  increase in equity  earnings
from Grupo TFM and a $5.3 million  decrease in the income tax  provision for the
year  ended  December  31,  2000 were  partially  offset  by a  decline  in U.S.
operating  income of $1.0  million and an  increase in interest  expense of $8.4
million.  Consolidated  revenues  declined  4.9%  while  consolidated  operating
expenses  declined 5.2% for the twelve  months ended  December 31, 2000 compared
with 1999.  Excluding  the impact of unusual costs and expenses  experienced  in
fourth quarter 1999, year to date 2000 consolidated  operating expenses declined
2.9% compared to 1999.

During  January  2000,  the  Company   re-capitalized   its  debt  structure  in
anticipation of the Spin-off of Stilwell Financial,  which was completed in July
2000, and in September 2000 also  refinanced $200 million of bank debt with $200
million of 8-year senior unsecured notes. In connection with these  transactions
KCSI recorded extraordinary debt retirement costs of approximately $7.0 million,
(net of income taxes). Additionally, during the third quarter of 2000, Grupo TFM
refinanced $300 million of bank debt with a U.S. Commercial Paper program. Total
KCSI and Grupo TFM debt retirement related  extraordinary  charges for 2000 were
$8.7 million, or 15 cents per diluted share, net of income taxes.

DILUTED EARNINGS PER SHARE AND COMMON SHARES COMPARISONS
C>
Fourth Quarter            Year to Date
                                      --------------            ------------
                                      2000       1999          2000      1999
                                      ----       ----          ----      ----
Income from continuing operations:
  U.S. operations                    $0.10      $0.13         $0.41     $0.50
  Grupo TFM and associated interest  (0.04)     (0.12)         0.02     (0.19)
  Non-recurring unusual costs &       -         (0.14)         -        (0.14)
    expenses                        ------    -------        ------     ------

  Income (loss) from continuing       0.06      (0.13)         0.43      0.17
operations
Extraordinary debt retirement costs   -          -            (0.15)     -
                                    ------    -------        ------     ------
   Total diluted earnings (loss)
    per share from continuing
    operations, adjusted for
    extraordinary items               0.06      (0.13)         $0.28    $0.17
                                    ======     ======         ======   ======

Weighted Average Diluted
   Common Shares Outstanding        59,839     55,270         58,390   57,025
   (thousands)(1)
(1) KCSI stockholders  previously  approved a reverse split of KCSI Common stock
that became  effective upon completion of the Spin-off.  As discussed above, the
Spin-off  occurred  on July 12, 2000 and,  accordingly,  at the close of the New
York Stock  Exchange on July 12, 2000,  each two shares of KCSI Common stock was
converted to one share of KCSI Common  stock.  All periods  presented  have been
restated to reflect this reverse split.

Following  the Spin-off of Stilwell  from the Company on July 12, 2000,  KCSI is
comprised of, among others,  The Kansas City Southern Railway Company  ("KCSR"),
Gateway Western Railway Company  ("Gateway  Western") and equity  investments in
Grupo TFM and Mexrail, Inc.

Fourth Quarter
KCSI reported  income from  continuing  operations of $3.6 million for the three
months  ended  December  31, 2000  compared to a loss of $7.2  million in fourth
quarter 1999.

KCSI's  consolidated  fourth quarter 2000 revenues totaled $134.8 million versus
$151.7  million in fourth  quarter  1999.  This $16.9 million  (11.1%)  decrease
resulted  primarily  from  lower  combined   KCSR/Gateway  Western  revenues  of
approximately  $15.9 million.  While revenue  growth was  experienced in certain
product sectors including  plastics,  automotive,  food products and metal/scrap
shipments,  most commodities  showed weakness in the fourth quarter on a decline
in carload  volumes.  As the general U.S. economy slowed in fourth quarter 2000,
industrial  production and manufacturing  also retracted leading to a decline in
demand for product  shipments.  Unit coal revenues were particularly lower (28%)
as a major customer  reduced coal  deliveries in fourth quarter 2000 to decrease
inventory stockpiles.

KCSI's consolidated operating costs and expenses decreased $23.7 million (16.2%)
in the fourth  quarter of 2000  compared to the fourth  quarter of 1999.  Fourth
quarter 1999 included  $12.8  million of unusual costs and expenses  reflecting,
among others,  amounts for facility and project closures,  employee separations,
spin-off  related costs,  labor and personal  injury related  issues.  Excluding
these costs from 1999,  fourth  quarter  2000  operating  costs  declined  $10.9
million compared to adjusted fourth quarter 1999.  Fourth quarter 2000 operating
costs declined,  in spite of diesel fuel costs,  which rose approximately 30% in
the fourth quarter of 2000 compared to fourth quarter 1999, and higher  casualty
costs.   Overall   operating   costs  declined   primarily  due  to  operational
efficiencies,  cost  containment  efforts  and  gains on the  sale of  operating
property at KCSR and Gateway Western.  These  operational  improvements led to a
quarter over  quarter  decrease in salaries  and wages,  car hire and  purchased
services.  Revenue  declines,  however,  resulted  in  increasing  the  combined
KCSR/Gateway  Western  operating ratio for fourth quarter 2000 to 88.7% compared
to 85.7% in the same 1999 period, excluding unusual costs and expenses.

Equity  earnings  related to the  Company's  investment in Grupo TFM improved to
$2.8  million for fourth  quarter  2000 versus a loss of $3.3  million in fourth
quarter 1999.  Grupo TFM revenues  improved 18% to $165.4 million for the fourth
quarter of 2000 from $140.7 million for the fourth quarter of 1999. These higher
revenues  were  partially  offset by an  approximate  21%  increase in operating
expenses  arising  primarily  from higher fuel costs and costs due to  increased
traffic volumes.  Despite the impact of these higher operating costs,  operating
income rose  approximately 5% quarter to quarter.  The operating ratio increased
to 78.6% in the fourth  quarter of 2000  versus  77.1% in the fourth  quarter of
1999. Additionally, fourth quarter 2000 results included a $0.3 million deferred
tax expense  (calculated under U.S. generally accepted  accounting  principles -
"U.S.  GAAP") versus a deferred tax expense of $16.5  million in fourth  quarter
1999, which was caused by a significant  change in the peso exchange rate at the
end of 1999.  The Company  reports its equity in Grupo TFM under U.S. GAAP while
Grupo TFM reports under International Accounting Standards.

KCSI interest  expense in the fourth quarter of 2000 declined 18% from the prior
year  quarter.  Increased  interest  expense  due to higher  interest  rates and
amortization  of debt  issuance  costs  associated  with the  January  2000 debt
re-capitalization was more than offset by a benefit related to the adjustment of
interest expense on anticipated tax deficiency items.

Year to Date
The Company's income from continuing  operations before  extraordinary items for
the twelve months ended  December 31, 2000 totaled  $25.4  million  versus $10.2
million  in the same  1999  period  (a 149%  improvement).  KCSI's  consolidated
revenues  declined  approximately  4.9%, while operating  expenses declined 5.2%
period to period.

Year to date combined  KCSR/Gateway  Western  revenues  decreased  $22.5 million
primarily as a result of declines in coal, export grain,  chemical/petroleum and
haulage revenues. These declines were partially offset by increases in paper and
forest products and intermodal/automotive  revenues. Excluding the unusual costs
and expenses in fourth quarter 1999,  combined  KCSR/Gateway  Western  operating
costs decreased  approximately  $6.1 million period to period.  Lower costs were
experienced  in salaries & wages,  material & supplies and car hire,  along with
the impact of gains on sales of operating property.  Fuel costs,  however,  rose
40% in 2000  compared to 1999 on a 64%  increase in average  diesel fuel prices.
The combined  KCSR/Gateway  Western operating ratio was 87.3% for the year ended
December  31,  2000  compared  to 85.1% for the year ended  December  31,  1999,
excluding unusual costs and expenses in 1999.
Excluding  the  impact of the Grupo TFM  extraordinary  item  recorded  in third
quarter 2000, equity earnings from Grupo TFM improved $20.1 million for the year
ended  December 31, 2000  compared to the year ended  December  31, 1999.  Grupo
TFM's revenues increased 22% period to period,  while operating income increased
nearly 34% resulting in an operating  ratio of 74.0% for the year ended December
31, 2000 compared to 76.6% for 1999.  Under U.S.  GAAP, the deferred tax benefit
for Grupo TFM was $13.2 million (excluding the impact of the extraordinary item)
for the twelve months ended December 31, 2000 compared to a deferred tax expense
of $11.5 million in 1999.

BUSINESS OUTLOOK
Michael R. Haverty, KCSI Chairman,  President and Chief Executive Officer, said,
"While we  experienced  the revenue  effects of an economic  slowdown  and a 28%
reduction in our unit coal revenues in fourth  quarter 2000, we are pleased with
our  efforts to contain  operating  costs.  We  believe we have  established  an
effective  operating cost structure that will prove  beneficial as we anticipate
the return to revenue  growth on our U.S.  properties in 2001. In addition,  the
ongoing  success of our  investment  in Grupo TFM is a  validation  of our NAFTA
railway strategy.

The  incredible  growth story at Grupo TFM  continues as revenues and  operating
profit for 2000 have increased nearly 22% and 34%, respectively. Equity earnings
from Grupo TFM have  increased  $20.1  million this year over last year and have
been a significant  contributor to our income from continuing  operations during
2000.  We  continue  to  believe  that the best is yet to come with our  Mexican
investment in Grupo TFM as it realizes its potential as the rail  transportation
leader in NAFTA traffic for the North American marketplace.

Over the course of 2000,  we  significantly  improved  the  efficiency  and cost
structure  of our  U.S.  railroad  operations.  As  anticipated  revenue  growth
materializes,  this improved cost structure will produce improved profitability.
We have  seen  diesel  fuel  price  increases  in  2000,  which  have  not  been
experienced in many years. We effectively  managed our exposure to dramatic fuel
cost increases by aggressively  focusing on improved locomotive  efficiency.  We
believe  our  improvement  in  fuel  efficiency  through  the  lease  of 50  new
fuel-efficient   locomotives  in  late  1999  as  well  as  an  aggressive  fuel
conservation  program  initiated  in  mid-1999  demonstrated  its impact on fuel
costs. Additionally,  we continue to experience lower salaries and wages through
the  reduction  of the amount of overtime  hours worked and the number of relief
train crews used as well as a reduction in total employee count.

Domestically we were adversely affected by a fourth quarter economic slowdown, a
significant  reduction  in  coal  shipments  by  our  largest  customer,  highly
competitive rate pressures and high interest costs.

As we look to 2001,  we  envision  continued  success in Mexico  with Grupo TFM,
increasing  revenues and profitability for our U.S.  operations as we regain our
coal traffic and increase  automotive  and chemical  traffic,  the re-opening of
commercial  service on the Panama  Canal  Railway  and an  emphasis  on reducing
corporate  debt  throughout  the year.  KCSI  management  continues  its  strong
commitment  toward maximizing the potential of the NAFTA franchise and enhancing
shareholder value."

This press  release  includes  statements  concerning  potential  future  events
involving  the  Company,  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 KCSI's  December 31, 1999 Form 10-K,  the Current
Report on Form  8-K/A  dated June 3, 1997,  each filed by the  Company  with the
Securities and Exchange  Commission  (Commission  file no. 1-4717).  The Company
will not update any forward-looking  statements in this press release to reflect
future events or developments.

                        (Financial Information Attached)
KANSAS CITY SOUTHERN INDUSTRIES, INC. and SUBSIDIARY
                                    COMPANIES
                          (excludes Stilwell Financial Inc.)
                     CONSOLIDATED CONDENSED STATEMENTS OF INCOME
                     (dollars in millions, except per share data)
                                   (Unaudited)
Three Months        Twelve Months
                                          Ended December 31,   Ended December 31,
                                          -----------------     ----------------
                                            2000      1999       2000     1999
                                           -------   -------    -------  -------

    Revenues                               $134.8    $151.7     $572.2   $601.4

    Costs and
    expenses                                108.9     132.4      453.0    480.4
    Depreciation and
    amortization                             13.7      13.9       56.1     56.9
                                           -------   -------    -------  -------

    Operating income                         12.2       5.4       63.1     64.1

    Equity in net earnings of unconsolidated affiliates:
     Grupo Transportacion Ferroviaria
    Mexicana, S.A. de C.V. (estimated)        2.8      (3.3)      21.6      1.5
     Other                                   (1.1)      0.2        2.2      3.7
    Interest expense                        (11.6)    (14.1)     (65.8)   (57.4)
    Other, net                                1.2       2.1        6.0      5.3
                                           -------   -------    -------  -------

    Pretax income (loss)                      3.5      (9.7)      27.1     17.2

    Income tax provision (benefit)           (0.1)     (2.5)       1.7      7.0
                                           -------   -------    -------  -------

    Income (loss) from
    continuing operations                     3.6      (7.2)      25.4     10.2
    Extraordinary items,
    net of tax:
      Debt retirement costs - KCSR/KCSI       -        -          (7.0)     -
      Debt retirement costs - TFM             -        -          (1.7)     -
                                           -------   -------    -------  -------
    Income (loss) from continuing
    operations, net extraordinary items     $ 3.6     $(7.2)    $ 16.7   $ 10.2
                                           =======  =======     =======  =======

    Per Share Data:

    Basic earnings (loss) per Common
     Share from continuing operations       $0.06    $(0.13)    $ 0.44   $ 0.18
    Basic earnings (loss) per Common
     Share - extraordinary items                -        -       (0.15)       -
                                           -------   -------    -------  ------
    Basic earnings (loss) per Common
     Share, net of extraordinary items       0.06     (0.13)      0.29     0.18
                                           =======  =======     =======  =======

    Weighted Average Common shares
    outstanding (in thousands)             58,132    55,270     56,650   55,142
                                           -------   -------    -------  -------

    Diluted earnings (loss) per Common
     Share from continuing operations      $ 0.06    $(0.13)    $ 0.43   $ 0.17
    Diluted earnings (loss) per Common
     Share - extraordinary items                 -        -      (0.15)       -
                                           -------   -------    -------  -------
    Diluted earnings (loss) per Common
     Share, net of extraordinary items     $ 0.06    $(0.13)    $ 0.28   $ 0.17
                                           =======  =======     =======  =======

    Diluted Common shares outstanding
     (in thousands)                        59,839    55,270     58,390   57,025
                                           -------   -------    -------  -------
EXHIBIT 99.2

Combined KCSR and Gateway Western
Operating Statements
Dollars in Millions
Fourth        Fourth         Twelve        Twelve
                                Quarter       Quarter         Months        Months
                                  2000         1999 *          2000         1999 *
                              ------------- -------------   ------------ -------------
Revenues
 Freight Revenue                  $   82.3      $   86.6      $   347.6      $  355.0
 Intermodal and Automotive Revenue    16.0          16.0           63.0          59.1
 Unit Coal Revenue                    22.2          30.7          103.6         116.3
 Other Revenue                        11.8          14.9           48.9          55.2
                              ------------- -------------   ------------ -------------
      Total Revenues                 132.3         148.2          563.1         585.6
                              ------------- -------------   ------------ -------------

Operating Expenses
    Salaries & Wages                  35.6          39.0          139.3         146.6
    Fringe Benefits                   11.3          13.2           52.6          53.1
    Fuel                              12.8           9.8           48.1          34.2
    Material and Supplies              6.9           8.6           30.5          35.1
    Car Hire                           3.7           6.0           14.8          22.4
    Purchased Services                12.0          16.0           47.9          51.7
    Casualties & Insurance             9.5           9.3           34.0          30.6
    Other                             (2.4)          9.0            3.6          19.7
                              ------------- -------------   ------------ -------------
      Net Operating Expenses          89.4         110.9          370.8         393.4
                              ------------- -------------   ------------ -------------

Fixed Expenses
    Leases, Net                       13.1          12.0           55.6          52.0
    Depreciation                      12.7          12.9           52.1          50.0
    Taxes (Other Than Income)          2.1           4.0           13.3          15.3
                              ------------- -------------   ------------ -------------
      Total Fixed Expenses            27.9          28.9          121.0         117.3
                              ------------- -------------   ------------ -------------
    Total Expenses                   117.3         139.8          491.8         510.7
                              ------------- -------------   ------------ -------------
Operating Income                      15.0           8.4           71.3          74.9
*  Includes $12.8 million of non-recurring costs and expenses
Combined Kansas City Southern Railway/Gateway Western
Carloadings By Commodity - Year Ended December 31, 2000
Dollars in Thousands
Carloadings                                                 Revenue

          Year ended       %                                          Year ended     %
----------------------                                        --------------------
  1999         2000     Change                                  1999     2000     Change
----------   ---------  --------                              -------- ---------  --------

                                      Coal
  197,347     180,949    (8.3)%         Unit Coal             116,314   103,617    (10.9)%
    3,486       3,216    (7.7)%         Other Coal              1,054     1,342     27.3%
----------   ---------                                        -------- ---------
  200,833     184,165    (8.3)%                               117,368   104,959    (10.6)%

                                     Chemical & Petroleum Products
   25,841      26,276      1.7%         Plastics               23,968    24,665      2.9%
   72,408      68,048     (6.0)%         Misc. Chemicals       67,478    65,198     (3.4)%
    4,970       1,813     (63.5)%        Soda Ash               5,765     2,007    (65.2)%
   35,361      33,139     (6.3)%         Petro Products        25,010    24,426     (2.3)%
   26,924      24,848     (7.7)%         Petro Coke            10,523    10,017     (4.8)%
----------   ---------                                        -------- ---------
  165,504     154,124     (6.9)%                 Total         132,744   126,313    (4.8)%
----------   ---------                                        -------- ---------

                                     Agriculture and
                                    Minerals
   50,236      49,201    (2.1)%         Domestic Grain         36,665    36,898      0.6%
   14,439      11,060   (23.4)%         Export Grain           11,159     8,109    (27.3)%
   32,373      29,458    (9.0)%         Food/Kindred           23,030    23,744      3.1%
                                    Products
   26,036      25,528    (2.0)%         Ores and Minerals      13,542    13,256     (2.1)%
   17,850      16,721    (6.3)%         Stone, Clay & Glass    12,737    12,332     (3.2)%
   26,309      25,100    (4.6)%         Metal/Scrap            15,831    19,275     21.8%
   11,711       7,620   (34.9)%         Military/Other         10,131     7,993    (21.1)%
                                    Carloads
----------   ---------                                        -------- ---------
  178,954     164,688    (8.0)%                 Total         123,095   121,607    (1.2)%
----------   ---------                                        -------- ---------

                                     Paper & Forest
                                    Products
   92,541      90,577    (2.1)%         Pulp/Paper             62,086    63,344      2.0%
    7,790       7,181    (7.8)%         Scrap Paper             3,944     3,912     (0.8)%
   39,527      33,675   (14.8)%         Pulpwood/Logs/Chips    15,155    13,439    (11.3)%
   27,983      28,291     1.1%          Lumber/Plywood         23,840    24,933      4.6%
----------   ---------                                        -------- ---------
  167,841     159,724    (4.8)%                 Total         105,025   105,628      0.6%
----------   ---------                                        -------- ---------

                                     Intermodal & All Other Carloads
    7,987      21,655    171.1%         Automotive              7,487    13,351     78.3%
  222,981     247,604     11.0%         Intermodal             51,599    49,622     (3.8)%
----------   ---------                                        -------- ---------
  230,968     269,259     16.6%                 Total          59,086    62,973      6.6%
----------   ---------                                        -------- ---------

  944,100     931,960     (1.3)%     TOTAL FOR BUSINESS UNITS 537,318   521,480     (2.9)%

   43,586      32,607    (25.2)%     Haulage                   16,779    11,614    (30.8)%

   (8,231)     (8,561)     4.0%     Adjustments                (6,923)   (7,289)     5.3%
----------   ---------                                        -------- ---------

  979,455     956,006     (2.4)%              TOTAL           547,174   525,805     (3.9)%
==========   =========                                        ======== =========
Combined Kansas City Southern Railway/Gateway Western
Carloadings By Commodity - Fourth Quarter 2000
Dollars in Thousands

             Carloadings                                                 Revenue

          Fourth Quarter    %                                      Fourth Quarter   %
-------------------------                                      --------------------
  1999        2000       Change                                  1999      2000    Change
----------   --------    --------                              --------  --------  --------

                                      Coal
   49,306     39,451     (20.0)%         Unit Coal              30,654    22,211   (27.5)%
      664        914      37.7%          Other Coal                201       477   137.3%
----------   --------                                          --------  --------
   49,970     40,365     (19.2)%                                30,855    22,688   (26.5)%

                                       Chemical & Petroleum Products
    6,102      6,466        6.0%          Plastics               5,635     6,486    15.1%
   17,868     16,098      (9.9)%          Misc. Chemicals       16,906    15,174   (10.2)%
      902        436     (51.7)%          Soda Ash                 994       472   (52.5)%
    8,398      7,455     (11.2)%          Petro Products         5,927     5,562    (6.2)%
    5,967      6,152        3.1%          Petro Coke             2,533     2,283    (9.9)%
----------   --------                                          --------  --------
   39,237     36,607      (6.7)%                 Total          31,995    29,977    (6.3)%

                                       Agriculture and
                                       Minerals
   12,657     10,993     (13.1)%          Domestic Grain         9,450     8,831    (6.6)%
    3,210      2,674     (16.7)%          Export Grain           2,109     2,177     3.2%
    7,706      7,194      (6.6)%          Food/Kindred Products  5,450     5,958     9.3%
    6,778      5,510     (18.7)%          Ores and Minerals      3,543     3,149   (11.1)%
    4,215      3,796      (9.9)%          Stone, Clay & Glass    3,148     2,803   (11.0)%
    8,221      5,581     (32.1)%          Metal/Scrap            3,908     4,361    11.6%
    2,355      1,660     (29.5)%          Military/Other
                                             Carloads            2,015     1,797   (10.8)%
----------   --------                                          --------  --------
   45,142     37,408     (17.1)%                 Total          29,623    29,076    (1.8)%
----------   --------                                          --------  --------

                                       Paper & Forest Products
   23,082     21,603      (6.4)%          Pulp/Paper            15,728    15,240    (3.1)%
    2,130      1,938      (9.0)%          Scrap Paper            1,085     1,055    (2.8)%
    9,577      7,637     (20.3)%       Pulpwood/Logs/Chips       3,795     3,103   (18.2)%
    6,979      6,603      (5.4)%          Lumber/Plywood         5,984     5,796    (3.1)%
----------   --------                                          --------  --------
   41,768     37,781      (9.5)%                 Total          26,592    25,194    (5.3)%
----------   --------                                          --------  --------

                                       Intermodal & Automotive
    2,030      6,668      228.5%          Automotive             2,855     3,959    38.7%
   57,232     67,926       18.7%          Intermodal            13,215    12,005    (9.2)%
----------   --------                                          --------  --------
   59,262     74,594       25.9%                 Total          16,070    15,964    (0.7)%
----------   --------                                          --------  --------

  235,379    226,755      (3.7)%      TOTAL FOR BUSINESS UNITS 135,135   122,899    (9.1)%

   10,429      6,319     (39.4)%       Haulage                   3,846     3,324   (13.6)%
   (2,450)    (2,721)     11.1%        Adjustments              (1,786)   (2,385)   33.5%
----------   --------                                          --------  --------

  243,358    230,353      (5.3)%               TOTAL           137,195   123,838    (9.7)%
==========   ========                                          ========  ========
Kansas City Southern Industries, Inc.
                                                                ----------------
Consolidated Balance Sheets                                       PRELIMINARY
                                                                ----------------
Unaudited
(Dollars in Millions)
December 31, 2000    December 31, 1999
                                          -----------------    -----------------

Assets
  Cash                                         $      21.5          $      11.9
  Accounts receivable                                142.0                132.2
  Inventories                                         34.0                 40.6
  Other current assets                                40.3                 23.8
                                          -----------------     ----------------
     Total current assets                            237.8                208.5

  Investments held for operating purposes            358.2                337.1
  Properties, net of depreciation                  1,327.8              1,277.4
  Other assets                                        42.1                 34.4
                                          -----------------     ----------------

      Total assets                            $    1,965.9         $    1,857.4
                                          =================     ================

Liabilities and Stockholders' Equity
  Current portion of long-term debt            $      36.2          $      10.9
  Accounts payable                                    58.3                 74.8
  Accrued liabilities                                156.3                168.5
                                          -----------------     ----------------
     Total current liabilities                       250.8                254.2

  Long-term debt                                     638.4                750.0
  Deferred income taxes                              357.1                297.4
  Other                                               76.2                 87.3
  Stockholders' equity                               643.4                468.5
                                          -----------------     ----------------

    Total liabilities and stockholders'       $    1,965.9         $    1,857.4
       equity                             =================     ================