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 30, 2003

                              KANSAS CITY SOUTHERN

               (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)

                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)









<PAGE>


ITEM 7.  FINANCIAL STATEMENTS AND EXHIBITS

(c)    Exhibits

       EXHIBIT NO.                      DOCUMENT

       (99)                             Additional Exhibits

       99.1                             Press Release issued by Kansas City
                                        Southern dated January 30, 2003
                                        entitled, "Kansas City Southern Reports
                                        Higher Fourth Quarter and Year to Date
                                        2002 Earnings," is attached hereto as
                                        Exhibit 99.1


       99.2                             The following schedules are attached
                                        hereto as Exhibit 99.2 - Kansas City
                                        Southern Operating Statements, Kansas
                                        City Southern Railway Carloadings by
                                        Commodity, Kansas City Southern
                                        Consolidated Balance Sheets




ITEM 9.  REGULATION FD DISCLOSURE

Kansas City Southern  ("KCS" or  "Company")  is furnishing  under Item 9 of this
Current Report on Form 8-K the information  included as Exhibit 99.1 and Exhibit
99.2 of this report.  Exhibit 99.1 is the Company's press release, dated January
30, 2003,  announcing  KCS's fourth  quarter and year to date 2002  earnings and
operating  results.  Included in Exhibit 99.2 are  schedules  regarding  certain
financial  information discussed at the Company's fourth quarter 2002 conference
call.

The information  included in this Current Report on Form 8-K,  including Exhibit
99.1 and Exhibit 99.2,  is furnished  pursuant to Item 9 and shall not be deemed
to be "filed" for the purposes of Section 18 of the  Securities  Exchange Act of
1934 or otherwise subject to the liabilities of that Section.

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: February 3, 2003                 By:         /S/  LOUIS G. VAN HORN
                                          --------------------------------------
                                                      Louis G. Van Horn
                                               Vice President and Comptroller
                                               (Principal Accounting Officer)



<PAGE>

EXHIBIT 99.1

KANSAS CITY SOUTHERN                                               PRESS RELEASE
427 WEST 12TH STREET, KANSAS CITY, MISSOURI 64105               NYSE SYMBOL: KSU


     Date:                 January 30, 2003

     Media Contact:        William H. Galligan                816/983-1551
                           william.h.galligan@kcsr.com

             KANSAS CITY SOUTHERN REPORTS HIGHER FOURTH QUARTER AND

                           YEAR TO DATE 2002 EARNINGS

EARNINGS ANALYSIS & COMMENTARY

Kansas City Southern ("KCS" or the "Company")  (NYSE:KSU) reported net income of
$17.4  million  (28(cent) per diluTED  share) for the fourth  quarter of 2002, a
$6.3 million  increase  over net income of $11.1  million  (18(cent) per diluted
share) for the fourth quarter of 2001. These results were driven by the strength
of equity in earnings  from the  Company's  investment  in Grupo  Transportacion
Ferroviaria  Mexicana,  S.A. de C.V.  ("Grupo  TFM"),  which  contributed  $15.2
million to the Company's quarterly  earnings,  a $10.2 million increase over the
fourth quarter of 2001. Other positive  contributing  factors during the quarter
included a decline in the income tax provision of $2.6  million,  a $1.1 million
increase in other  income and a $0.7 million  improvement  in equity in earnings
(losses)  from other  unconsolidated  affiliates.  These  positive  factors were
partially  offset by a $3.8  million  increase  in  operating  expenses,  a $2.7
million decline in revenues and a $1.8 million increase in interest expense.

For the year ended December 31, 2002, the Company's net income was $54.2 million
(87(cent) per diluted  share)  compared to $30.7  million  (50(cent) per diluted
share) for 2001, an increase of $23.5 million.  This improvement resulted from a
$14.3  million  increase in equity in earnings  from Grupo TFM, a $13.4  million
increase in other income, a $7.8 million decline in interest expense, and a $4.4
million  gain  realized  on the  sale of  Mexrail,  Inc.  ("Mexrail")  to  KCS's
affiliate  in Mexico,  TFM,  S.A. de C.V.  ("TFM").  These items were  partially
offset by a $7.4 million decline in operating income, a $4.1 million increase in
the income tax  provision  and a $1.0 million  decline in the results from other
unconsolidated affiliates.  Additionally, net income for the year ended December
31, 2002  includes $4.3 million of debt  retirement  costs  associated  with the
early retirement of term debt in June 2002. These costs were previously reported
net of income taxes as an  extraordinary  item,  but have been  reclassified  in
accordance with the provisions of a new accounting standard.  The related income
taxes are now reflected in the income tax provision. Equity in earnings for 2001
reflects the Company's proportionate share ($9.1 million) of the income recorded
by Grupo TFM  relating  to the  reversion  of certain  concession  assets to the
Mexican  government.  Additionally,  net income for 2001 includes a $0.4 million
charge  relating to the  implementation  of Statement  of  Financial  Accounting
Standards  No.  133,   "Accounting   for  Derivative   Instruments  and  Hedging
Activities."  This charge was presented as a cumulative  effect of an accounting
change, net of income taxes in 2001.

Diluted earnings per share information is as follows:

<TABLE>
<S>                                                               <C>             <C>               <C>             <C>
                                                                    FOURTH QUARTER                     YEAR TO DATE

                                                              ---------------------------       ----------------------------
                                                                 2002            2001              2002             2001
                                                              -----------     -----------       -----------      -----------

  U.S. operations                                             $    0.10       $    0.16         $    0.45        $    0.33
  Grupo TFM and PCRC (includes allocated interest)                 0.18            0.02              0.42             0.18
                                                              -----------     -----------       -----------      -----------
  INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE             0.28            0.18              0.87             0.51

Cumulative effect of accounting change, net of income taxes         -               -                 -              (0.01)
                                                              -----------     -----------       -----------      -----------
      Diluted earnings per share - Net income                 $    0.28       $    0.18         $    0.87        $    0.50
                                                              -----------     -----------       -----------      -----------
</TABLE>
<PAGE>

FOURTH QUARTER
During the fourth quarter of 2002, the Company's consolidated revenues decreased
$2.7 million and consolidated  operating  expenses rose $3.8 million compared to
the fourth  quarter of 2001,  resulting in a $6.5  million  decline in operating
income quarter to quarter.  The majority of the revenue  decline  related to the
Kansas City Southern Railway Company ("KCSR"), the Company's principal operating
subsidiary.

Although KCSR revenues  declined $2.0 million  during the fourth quarter of 2002
compared to the fourth quarter of 2001,  KCSR continued to experience  favorable
revenue  trends in three of its five major  commodity  groups.  On a comparative
basis,  combined revenues for chemical and petroleum products,  paper and forest
products  and  agriculture  and mineral  products  increased  over 4% during the
fourth quarter of 2002 driven by higher  traffic  volumes,  increased  length of
haul and price  improvements  in key  traffic  lanes.  These  quarter to quarter
revenue  improvements  were offset by lower  revenues for coal and  intermodal &
automotive  business.  Although  overall net tons of coal  delivered  during the
fourth  quarter  increased  4% compared to the prior year quarter as a result of
increased  customer  demand,  coal  revenues  declined  $5.3 million  quarter to
quarter  primarily  because of a contractual  rate reduction at a major customer
that took  effect on January 1, 2002.  Also  impacting  quarterly  coal  revenue
comparisons was the expiration of a coal customer's  contract effective April 1,
2002.  Automotive  revenues  declined $2.3 million quarter to quarter due to the
loss of certain traffic effective May 2002.

Fourth quarter 2002 costs and expenses for KCSR increased $3.7 million  compared
to the prior year  quarter  resulting  from higher  costs for  compensation  and
benefits,  fuel,  purchased  services,  car hire and  depreciation.  These  cost
increases  were  partially  offset by lower  casualties  and insurance  expense.
Fringe benefits  increased  mostly as a result of higher health  insurance costs
and an unfavorable  adjustment for health care related post employment  benefits
determined through a third-party actuarial analysis.  The increase in fuel costs
was related to higher fuel prices partially  offset by improved  utilization and
purchased  services  rose as a result of higher car repair costs and an increase
to the  reserve  for  environmental  liabilities  related  to a  specific  site.
Compensation  and car hire costs  increased due mostly to the lingering  effects
from the  issues  surrounding  the  third  quarter  2002  implementation  of the
Company's new  transportation  operating  platform,  Management  Control  System
("MCS"). By mid-November,  however, the Company's operations began to experience
improved transit times and terminal  activities as MCS capabilities  began to be
fully  integrated  into KCS  management  processes.  Depreciation  expense  also
increased due to the  implementation  of MCS.  Casualties and insurance  expense
declined  substantially during the fourth quarter of 2002 compared to the fourth
quarter of 2001 due to a decline in personal injury  expenses,  lower derailment
expenses and the favorable settlement of an insurance claim. The net increase in
expenses  contributed  to a higher KCSR  operating  ratio of 88.6% in the fourth
quarter  of 2002  compared  to  84.8%  for  the  same  period  in  2001,  but an
improvement of 5.68  percentage  points over the operating  ratio from the third
quarter of 2002.

The Company's  equity in earnings from Grupo TFM increased  approximately  $10.2
million  quarter to quarter.  Exclusive of the results from  Mexrail,  which was
acquired  by TFM on March 27,  2002,  fourth  quarter  2002  Grupo TFM  revenues
declined  approximately  3%  compared to the fourth  quarter of 2001.  Operating
expenses  decreased  approximately  7%  quarter  to  quarter  (under  accounting
principles  generally  accepted in the United States of America - "U.S.  GAAP").
Fourth  quarter 2002 results for Grupo TFM include a $36.0 million  deferred tax
benefit  (calculated under U.S. GAAP) compared to a deferred tax benefit of $1.7
million  in the  fourth  quarter  of 2001.  The  variance  in the  deferred  tax
calculation  of Grupo TFM is mostly  attributable  to  fluctuations  in the peso
exchange  rate and tax benefits  derived from the impact of inflation in Mexico.
The  Company  reports its equity in Grupo TFM under U.S.  GAAP,  while Grupo TFM
reports under International Accounting Standards ("IAS").
<PAGE>

Equity in losses from other  unconsolidated  affiliates was $0.5 million for the
fourth  quarter of 2002  compared to losses of $1.2  million for the  comparable
2001 quarter.  This improvement  partially relates to the sale of Mexrail in the
first quarter of 2002 as during the fourth quarter of 2001 the Company  reported
equity in losses from Mexrail of $1.5 million.  Also impacting this change was a
decline in equity in earnings from both Southern Capital Corporation  ("Southern
Capital") and the Panama Canal Railway Company  ("PCRC").  PCRC is currently not
operating at full capacity due to delays in the completion of the port of Balboa
expansion.  The Balboa port  expansion is expected to be complete by December of
2003 at which time the  revenues of PCRC are  anticipated  to  increase  and the
financial performance of PCRC is expected to improve.

KCS's  consolidated  fourth quarter 2002 interest expense increased $1.8 million
from the prior year  quarter  as a result of a higher  effective  interest  rate
partially offset by a lower debt balance.

YEAR TO DATE
For the year ended  December  31, 2002,  the  Company's  consolidated  operating
income  declined  $7.4 million  compared to 2001 as a result of a $17.0  million
decrease  in  revenues,  partially  offset by lower  operating  expenses,  which
declined $9.6 million year over year.  In 2002,  KCSR  revenues  declined  $12.7
million  compared to 2001,  primarily  as a result of lower coal and  automotive
revenue,  partially  offset by higher  revenue  for all  other  major  commodity
groups.  These  revenue  fluctuations  resulted  from  trends  similar  to those
discussed  in the fourth  quarter  analysis.  Revenue  from  other  subsidiaries
decreased  approximately $4.3 million year over year due to demand driven volume
declines.  KCSR's 2002 costs and expenses were $6.1 million lower than the prior
year due  mostly to a decline in costs  associated  with  fuel,  casualties  and
adjustments related to insurance settlements,  partially offset by higher fringe
benefit  costs,  purchased  services  and  depreciation  expense.  Year  to date
operating results were adversely  impacted by the MCS related  congestion issues
that significantly  impacted third quarter  operations.  The operating ratio for
KCSR was 89.2% for 2002 compared to 88.3% for 2001.

The Company's  equity in earnings from Grupo TFM increased  approximately  $14.3
million  year to year.  In 2001,  equity in  earnings  reflected  the  Company's
proportionate  share ($9.1 million) of the income recorded by Grupo TFM relating
to the  reversion  of  certain  concession  assets  to the  Mexican  government.
Exclusive  of this 2001  income,  KCS's 2002 equity in  earnings  from Grupo TFM
increased $23.4 million compared to 2001.  Exclusive of the results from Mexrail
for 2002, Grupo TFM's revenues  decreased  approximately 1% compared to 2001 and
operating  expenses (under U.S. GAAP) were  approximately 5% lower (exclusive of
the 2001 reversion  income).  For the year ended December 31, 2002,  Grupo TFM's
results  include an $84.8 million  deferred tax benefit  (calculated  under U.S.
GAAP) compared to a deferred tax expense of $10.9 million in 2001. This variance
was caused by several factors, including a deferred tax expense recorded in 2001
related  to the  income  from  the line  reversion,  the  weakening  of the peso
relative to the U.S. dollar,  as well as tax benefits derived from the impact of
Mexican  inflation  in 2002.  The  fluctuation  in the peso  exchange  rate also
contributed  to a $17.4  million  exchange loss for 2002 compared to an exchange
loss of $2.8 million for 2001.

The Company  reported equity in losses from other  unconsolidated  affiliates of
$2.4 million for 2002  compared to equity in losses of $1.4 million for 2001. In
2002,  losses associated with PCRC were $3.8 million compared to $1.6 million in
2001. As mentioned in the fourth quarter analysis,  in 2002 PCRC did not operate
at full capacity as initially planned due to the delay in completion of the port
expansion at Balboa.  During 2001, losses were primarily related to the start-up
of operations at PCRC.  Additionally,  the Company  reported  equity losses from
Mexrail of $2.1 million in 2001 compared to essentially a break-even  amount for
2002 prior to its sale to TFM. These losses were offset by equity  earnings from
Southern  Capital of $1.4 million and $2.4 million for the years ended  December
31, 2002 and 2001, respectively.
<PAGE>

KCS's  consolidated  2002 interest expense decreased $7.8 million (15%) compared
to 2001 as a result of a lower effective  interest rate for the first six months
of 2002 as well as substantially lower overall debt balances. The Company's debt
balance at December 31, 2002 was $582.6  million  compared to $684.8  million at
September  30, 2001,  a reduction  of over $100 million  during the past fifteen
months.  Other items  affecting the Company's year to date results include gains
totaling approximately $7.4 million related to the sale of certain non-operating
properties  at a  smaller  subsidiary  and a $4.9  million  gain on the  sale of
Wyandotte  Garage  Corporation,  a former 80% owned  subsidiary  of the Company.
These items  account for the majority of the increase  noted in other income for
2002 compared to 2001. Additionally, the Company reported a $4.4 million gain on
the  sale  of  Mexrail  as a  separate  item  in the  accompanying  consolidated
statements  of income.  Finally,  as  discussed  in the  earnings  analysis  and
commentary,  the results for 2002 include $4.3 million of debt retirement  costs
associated with the early retirement of term debt in June 2002. These costs were
previously  reported as an  extraordinary  item, but have been  reclassified  in
accordance with Statement of Financial Accounting Standards No. 145, "Rescission
of FASB  Statements  No. 4, 44, and 64,  Amendment of FASB Statement No. 13, and
Technical Corrections" ("SFAS 145").

COMMENTS FROM THE CHAIRMAN
Michael R. Haverty, KCS's Chairman,  President and Chief Executive Officer said,
"the operational performance of the Company continued to improve during the last
quarter of 2002 as KCSR adapts to the  operational  discipline  required by MCS.
Key performance  measurements  for KCSR such as terminal dwell time, train speed
and average  daily crew starts are  starting  to show  improvements  compared to
third  quarter  2002  performance  levels,  which is evident  in fourth  quarter
operating  income as it more than doubled compared to the third quarter of 2002.
In 2002, the chemical and petroleum products, agriculture and minerals and paper
and forest product  commodity groups produced  revenue  increases for the fourth
quarter  and  the  full  year  as  compared  to  2001  due  to  certain   volume
improvements,  longer hauls and targeted rate increases.  Unfortunately however,
the strength in these commodity groups was offset by the significant declines in
coal and automotive  revenues as discussed above.  Our cost structure,  although
certainly  not at the level we expect,  is continuing to rebound from the issues
surrounding  MCS  implementation.  We now  have  the  management  tools  to push
productivity initiatives and drive down costs.

During 2002, Grupo TFM provided a substantial contribution to our net income and
it continues to be a significant driver of the Company's  profitability.  During
the tough economic environment facing North America over the past several years,
Grupo TFM  management  has done a tremendous job of operating the strongest rail
franchise  in Mexico and has been able to maintain  its revenue base and control
its cost structure.  When the economy begins to improve,  Grupo TFM is poised to
take  advantage  of  its  leadership   position  in  the  NAFTA   transportation
marketplace. We are continuing to await the resolution of the legal process with
respect to Grupo TFM's Value Added Tax ("VAT")  claim and are  optimistic  about
the ultimate outcome of this matter.

As we look toward 2003 and beyond, we are confident that the Company's strategic
direction under its new MCS operating  platform will provide  opportunities  for
continuous  improvement in both operational  effectiveness  and efficiency.  Our
focus  is,  and  must  be,  firmly  set on  improving  domestic  operations  and
generating  stronger growth in our operating income. To accomplish this, we must
aggressively seek opportunities to expand our revenue base,  effectively control
our cost structure through a more disciplined  operating  environment and strive
to  provide  award  winning  customer   service.   Management  is  committed  to
accomplishing  these objectives and believes that, in doing so, the Company will
be well prepared to take advantage of an economic  recovery when it occurs.  Our
commitment to the  shareholders of KCS is to strive to maximize the value of our
rail franchise and build long-term shareholder value."
<PAGE>

KCS IS COMPRISED OF, AMONG  OTHERS,  THE KANSAS CITY  SOUTHERN  RAILWAY  COMPANY
("KCSR")  AND EQUITY  INVESTMENTS  IN GRUPO TFM,  SOUTHERN  CAPITAL  CORPORATION
("SOUTHERN CAPITAL") AND PANAMA CANAL RAILWAY COMPANY ("PCRC").

THIS PRESS  RELEASE  INCLUDES  STATEMENTS  CONCERNING  POTENTIAL  FUTURE  EVENTS
INVOLVING  THE  COMPANY  WHICH  COULD  MATERIALLY  DIFFER  FROM THE EVENTS  THAT
ACTUALLY  OCCUR.  SUCH  DIFFERENCES  COULD  BE  CAUSED  BY A NUMBER  OF  FACTORS
INCLUDING  THOSE  FACTORS  IDENTIFIED  IN A  CURRENT  REPORT  ON FORM 8-K  DATED
DECEMBER  11,  2001  FILED BY THE  COMPANY  WITH  THE  SECURITIES  AND  EXCHANGE
COMMISSION ("SEC") (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
                        CONSOLIDATED STATEMENTS OF INCOME
                  (DOLLARS IN MILLIONS, EXCEPT PER SHARE DATA)
                                   (UNAUDITED)
<TABLE>
<S>                                                                               <C>         <C>             <C>          <C>

                                                                                   THREE MONTHS                     YEAR ENDED
                                                                                ENDED DECEMBER 31,                 DECEMBER 31,
                                                                             -----------------------      -------------------------
                                                                               2002          2001            2002          2001
                                                                             ----------   ----------      ----------     ----------
 REVENUES                                                                    $   144.2    $   146.9       $   566.2      $   583.2

 Costs and expenses                                                              114.2        112.1           456.8          469.8
 Depreciation and amortization                                                    16.1         14.4            61.4           58.0
                                                                             ----------   ----------      ----------     ----------
 OPERATING INCOME                                                                 13.9         20.4            48.0           55.4

 Equity in net earnings (losses) of unconsolidated affiliates:
  Grupo Transportacion Ferroviaria Mexicana, S.A. de C.V. (PRELIMINARY)           15.2          5.0            42.8           28.5
  Other                                                                           (0.5)        (1.2)           (2.4)          (1.4)
 Gain on sale of Mexrail, Inc.                                                       -            -             4.4              -
 Interest expense                                                                (11.7)        (9.9)          (45.0)         (52.8)
 Debt retirement costs                                                               -            -            (4.3)             -

 Other income                                                                      2.3          1.2            17.6            4.2
                                                                             ----------   ----------      ----------     ----------
 INCOME BEFORE INCOME TAXES AND CUMULATIVE EFFECT OF ACCOUNTING CHANGE            19.2         15.5            61.1           33.9

 Income tax provision                                                              1.8          4.4             6.9            2.8
                                                                             ----------   ----------      ----------     ----------
 INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE                             17.4         11.1            54.2           31.1
 Cumulative effect of accounting change, net of income taxes                         -            -               -           (0.4)
                                                                             ----------   ----------      ----------     ----------
 NET INCOME                                                                  $    17.4    $    11.1       $    54.2      $    30.7


 PER SHARE DATA:

 Basic Weighted Average Common shares outstanding (IN THOUSANDS)                60,987        59,035         60,336         58,598

 Basic Earnings (Loss) per Common share
        Income before cumulative effect of accounting change                 $    0.28     $    0.19      $    0.89      $    0.53
        Cumulative effect of accounting change                                       -            -               -          (0.01)
                                                                             ----------    ----------     ----------     ----------

 Net Income                                                                  $    0.28     $    0.19      $    0.89      $    0.52
                                                                             ==========    ==========     ==========     ==========

 Diluted Weighted Average Common shares outstanding (IN THOUSANDS)              62,642        61,099         62,318         60,984

 Diluted Earnings (Loss) per Common share
        Income before cumulative effect of accounting change                 $    0.28     $    0.18      $    0.87      $    0.51
        Cumulative effect of accounting change                                       -            -               -          (0.01)
                                                                             ----------    ---------       ---------      ---------

 Net Income                                                                  $    0.28     $    0.18      $    0.87      $    0.50
                                                                             ==========    ==========     ==========     ==========
</TABLE>

<PAGE>


EXHIBIT 99.2

KANSAS CITY SOUTHERN
OPERATING STATEMENTS
DOLLARS IN MILLIONS
<TABLE>
<S>                                        <C>                     <C>                       <C>                   <C>
                                     FOURTH QUARTER          FOURTH QUARTER             TWELVE MONTHS          TWELVE MONTHS
                                          2002                    2001                       2002                  2001
                                   --------------------    -------------------        -------------------   --------------------
Revenues
    Freight Revenue                       $       92.2           $       88.3               $      360.1          $       346.2
    Intermodal and Automotive
     Revenue                                      13.6                   16.0                       59.9                   69.0
    Unit Coal Revenue                             25.7                   31.0                       98.7                  115.8
    Haulage Revenue                                2.5                    2.5                       10.0                   10.0
    Other Revenue                                 10.2                    9.1                       37.5                   42.2
                                   --------------------    -------------------        -------------------   --------------------
      Total Revenues                             144.2                  146.9                      566.2                  583.2
                                   --------------------    -------------------        -------------------   --------------------

Operating Expenses
    Compensation                                  34.5                   33.7                      137.1                  137.9
    Fringe Benefits                               16.2                   13.8                       60.7                   55.0
    Fuel                                          10.7                    8.6                       38.4                   43.9
    Material and Supplies                          6.8                    5.3                       29.1                   27.1
    Car Hire                                       4.8                    4.1                       19.7                   19.8
    Purchased Services                            16.1                   15.2                       59.6                   57.0
    Casualties & Insurance                         3.2                   13.7                       25.2                   42.1
    Other                                          4.2                   (0.4)                      20.1                   16.0
                                   --------------------    -------------------        -------------------   --------------------
      Net Operating Expenses                      96.5                   94.0                      389.9                  398.8
                                   --------------------    -------------------        -------------------   --------------------

Fixed Expenses
    Leases, Net                                   13.9                   14.2                       55.0                   56.8
    Depreciation                                  16.1                   14.4                       61.4                   58.0
    Taxes (Other Than Income)                      3.8                    3.9                       11.9                   14.2
                                   --------------------    -------------------        -------------------   --------------------
      Total Fixed Expenses                        33.8                   32.5                      128.3                  129.0
                                   --------------------    -------------------        -------------------   --------------------
    Total Expenses                               130.3                  126.5                      518.2                  527.8
                                   --------------------    -------------------        -------------------   --------------------

Operating Income                          $       13.9           $       20.4               $       48.0           $       55.4
                                   ====================    ===================        ===================   ====================


Note:
Certain prior year amounts have been reclassified to conform to the current year presentation.
</TABLE>

<PAGE>

KANSAS CITY SOUTHERN RAILWAY
CARLOADINGS BY COMMODITY - YEAR ENDED DECEMBER 31, 2002
DOLLARS IN THOUSANDS
<TABLE>
<S>                      <C>         <C>               <C>                           <C>            <C>            <C>

              CARLOADINGS                                                                     REVENUE

        Year to Date                %                                                    Year to Date               %
------------------------------                                                   ----------------------------
    2002             2001         Change                                            2002            2001          Change
--------------   -------------   ---------                                       ------------   -------------   -----------
                                               COAL
      205,543         197,166        4.2%         Unit Coal                        $  98,670       $ 115,825        (14.8)%
        4,487           5,167      (13.2)%        Other Coal                           2,510           2,923        (14.1)%
--------------   -------------                                                   ------------   -------------
      210,030         202,333        3.8%                     Total                  101,180         118,748        (14.8)%
--------------   -------------                                                   ------------   -------------

                                               CHEMICAL & PETROLEUM PRODUCTS
        5,846           6,704      (12.8)%        Agri Chemicals                       4,213           5,304        (20.6)%
       14,587          11,393       28.0%         Gases                               14,415          10,420         38.3%
       22,110          22,138       (0.1)%        Organic                             23,318          22,554          3.4%
       20,601          19,419        6.1%         Inorganic                           21,816          20,544          6.2%
       53,306          61,158      (12.8)%        Petroleum                           37,894          39,117         (3.1)%
       28,977          27,028        7.2%         Plastics                            29,056          26,904          8.0%
--------------   -------------                                                   ------------   -------------
      145,427         147,840       (1.6)%                    Total                  130,712         124,843          4.7%

--------------   -------------                                                   ------------   -------------

                                               AGRICULTURE AND MINERALS

       46,753          47,408       (1.4)%        Domestic Grain                      37,121          36,128          2.7%
       13,933          13,309        4.7%         Export Grain                        11,268          11,118          1.3%
       28,194          26,347        7.0%         Food Products                       24,190          22,875          5.7%
       22,236          23,467       (5.2)%        Ores and Minerals                   12,569          12,434          1.1%
       15,417          15,145        1.8%         Stone, Clay & Glass                 12,027          11,220          7.2%
--------------   -------------                                                   ------------   -------------
      126,533         125,676        0.7%                     Total                   97,175          93,775          3.6%
--------------   -------------                                                   ------------   -------------

                                               PAPER & FOREST PRODUCTS
       88,162          85,634        3.0%         Pulp/Paper                          67,556          61,195         10.4%
        6,402           6,960       (8.0)%        Scrap Paper                          3,842           3,812          0.8%
       31,215          36,184      (13.7)%        Pulpwood/Logchips                   13,448          15,037        (10.6)%
       27,448          26,268        4.5%         Lumber/Plywood                      25,753          23,109         11.4%
       18,066          19,831       (8.9)%        Metal/Scrap                         14,832          15,187         (2.3)%
        6,897           7,265       (5.1)%        Military/Other Carloads              9,358          10,799        (13.3)%
--------------   -------------                                                   ------------   -------------
      178,190         182,142       (2.2)%                    Total                  134,789         129,139          4.4%
--------------   -------------                                                   ------------   -------------

                                               INTERMODAL & AUTOMOTIVE
       12,899          34,710      (62.8)%        Automotive                           9,297          21,616        (57.0)%
      274,473         265,101        3.5%         Intermodal                          50,641          47,506          6.6%
--------------   -------------                                                   ------------   -------------
      287,372         299,811       (4.1)%                    Total                   59,938          69,122        (13.3)%
--------------   -------------                                                   ------------   -------------

      947,552         957,802       (1.1)%     TOTAL FOR BUSINESS UNITS              523,794         535,627         (2.2)%


       22,572          26,090      (13.5)%     HAULAGE                                10,025          10,025          0.0%


       (6,079)         (9,125)      33.4%      Adjustments                            (5,090)         (4,609)       (10.4)%
--------------   -------------                                                   ------------   -------------
      964,045         974,767       (1.1)%                    TOTAL                $ 528,729       $ 541,043         (2.3)%
==============   =============                                                   ============   =============

NOTE:

CERTAIN PRIOR YEAR AMOUNTS HAVE BEEN RECLASSIFIED TO CONFORM TO THE CURRENT YEAR PRESENTATION.
</TABLE>

<PAGE>

KANSAS CITY SOUTHERN RAILWAY
CARLOADINGS BY COMMODITY - FOURTH QUARTER 2002
DOLLARS IN THOUSANDS
<TABLE>
<S>                    <C>          <C>               <C>                            <C>             <C>           <C>

              CARLOADINGS                                                                     REVENUE

        Fourth Quarter                %                                                    Fourth Quarter               %
------------------------------                                                   ----------------------------
    2002             2001         Change                                            2002            2001         Change
--------------   -------------   ---------                                       ------------   -------------   ----------

                                               COAL
       53,340          52,899        0.8%         Unit Coal                        $  25,763       $  30,989       (16.9)%
        1,334           1,441       (7.4)%        Other Coal                             762             803        (5.1)%
--------------   -------------                                                   ------------   -------------
       54,674          54,340        0.6%                                             26,525          31,792       (16.6)%
--------------   -------------                                                   ------------   -------------

                                               CHEMICAL & PETROLEUM PRODUCTS
        1,442           1,777      (18.9)%        Agri Chemicals                       1,040           1,391       (25.2)%
        3,916           2,989       31.0%         Gases                                3,946           2,746        43.7%
        5,271           5,359       (1.6)%        Organic                              5,844           5,690         2.7
        5,448           4,825       12.9%         Inorganic                            5,520           5,171         6.7%
       13,054          14,179       (7.9)%        Petroleum                            8,931           9,375        (4.7)%
        6,997           6,886        1.6%         Plastics                             7,298           6,647         9.8%
--------------   -------------                                                   ------------   -------------
       36,128          36,015        0.3%                     Total                   32,579          31,020         5.0%
--------------   -------------                                                   ------------   -------------

                                               AGRICULTURE AND MINERALS
       12,112          11,599        4.4%         Domestic Grain                      10,233           8,976        14.0%
        4,151           4,838      (14.2)%        Export Grain                         3,213           4,344       (26.0)%
        7,432           6,581       12.9%         Food Products                        6,412           5,845         9.7%
        5,837           5,516        5.8%         Ores and Minerals                    3,336           2,864        16.5%
        3,493           3,666       (4.7)%        Stone, Clay & Glass                  2,839           2,738         3.7%

--------------   -------------                                                   ------------   -------------
       33,025          32,200        2.6%                     Total                   26,033          24,767         5.1%
--------------   -------------                                                   ------------   -------------

                                               PAPER & FOREST PRODUCTS
       22,554          22,386        0.8%         Pulp/Paper                          17,858          16,530         8.0%
        1,805           1,882       (4.1)%        Scrap Paper                          1,134           1,072         5.8%
        6,791           9,238      (26.5)%        Pulpwood/Logs/Chips                  3,336           3,852       (13.4)%
        6,579           6,301        4.4%         Lumber/Plywood                       6,570           5,745        14.4%
        4,162           3,545       17.4%         Metal/Scrap                          3,345           2,565        30.4%
        1,472           1,640      (10.2)%        Military/Other carloads              1,789           2,978       (39.9)%
--------------   -------------                                                   ------------   -------------
       43,363          44,992       (3.6)%                     Total                  34,032          32,742         3.9%
--------------   -------------                                                   ------------   -------------

                                               INTERMODAL & AUTOMOTIVE

        1,722           6,068      (71.6)%        Automotive                           1,497           3,833       (60.9)%
       63,078          67,222       (6.2)%        Intermodal                          12,110          12,249        (1.1)%
--------------   -------------                                                   ------------   -------------
       64,800          73,290      (11.6)%                     Total                  13,607          16,082       (15.4)%
--------------   -------------                                                   ------------   -------------

      231,990         240,837       (3.7)%     TOTAL FOR BUSINESS UNITS              132,776         136,403        (2.7)%


        4,874           6,362      (23.4)%      HAULAGE                                2,480           2,501        (0.8)%


       (1,145)         (2,097)      45.4%       Adjustments                           (1,275)         (1,128)      (13.0)%
--------------   -------------                                                   ------------   -------------

      235,719         245,102       (3.8)%                     TOTAL               $ 133,981       $ 137,776        (2.8)%
==============   =============                                                   ============   =============

NOTE:

CERTAIN PRIOR YEAR AMOUNTS HAVE BEEN RECLASSIFIED TO CONFORM TO THE CURRENT YEAR PRESENTATION.
</TABLE>

<PAGE>

KANSAS CITY SOUTHERN
CONSOLIDATED BALANCE SHEETS                                          PRELIMINARY
<TABLE>
<S>                                                         <C>                           <C>

                                                     DECEMBER 31, 2002             DECEMBER 31, 2001
                                                     -----------------             -----------------
                                                        (UNAUDITED)

ASSETS

  Cash                                                        $      19.0                   $      24.7
  Accounts receivable                                               115.9                         130.0
  Inventories                                                        34.2                          27.9
  Other current assets                                               44.5                          71.8
                                                   -----------------------       -----------------------
     Total current assets                                           213.6                         254.4

  Investments                                                       420.1                         386.8
  Properties, net of depreciation                                 1,337.4                       1,327.4
  Other assets                                                       32.1                          42.3
                                                   -----------------------       -----------------------

      Total assets                                            $   2,003.2                   $   2,010.9
                                                   =======================       =======================

LIABILITIES AND STOCKHOLDERS' EQUITY

  Current portion of long-term debt                           $      10.0                   $      46.7
  Accounts payable                                                   44.6                          50.4
  Accrued liabilities                                               128.6                         150.0
                                                   -----------------------       -----------------------
     Total current liabilities                                      183.2                         247.1

  Long-term debt                                                    572.6                         611.7
  Deferred income taxes                                             392.8                         370.2
  Other                                                             104.2                         101.6
  Stockholders' equity                                              750.4                         680.3
                                                   -----------------------       -----------------------

    Total liabilities and stockholders' equity                $   2,003.2                   $   2,010.9
                                                   =======================       =======================



</TABLE>
[{"type": "8-K", "sequence": "1", "filename": "fourthq02earn8k.txt", "secsgml_size_bytes": 48688}]
{"company-data": {"conformed-name": "KANSAS CITY SOUTHERN", "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": "03535568"}, "business-address": {"street1": "427 WEST 12TH STREET", "city": "KANSAS CITY", "state": "MO", "zip": "64105", "phone": "8169831303"}, "mail-address": {"street1": "427 WEST 12TH STREET", "city": "KANSAS CITY", "state": "MO", "zip": "64105"}, "former-company": {"former-conformed-name": "KANSAS CITY SOUTHERN INDUSTRIES INC", "date-changed": "19920703"}}
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 30, 2003

                              KANSAS CITY SOUTHERN

               (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)

                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 7.  FINANCIAL STATEMENTS AND EXHIBITS

(c)    Exhibits

       EXHIBIT NO.                      DOCUMENT

       (99)                             Additional Exhibits

       99.1                             Press Release issued by Kansas City
                                        Southern dated January 30, 2003
                                        entitled, "Kansas City Southern Reports
                                        Higher Fourth Quarter and Year to Date
                                        2002 Earnings," is attached hereto as
                                        Exhibit 99.1

       99.2                             The following schedules are attached
                                        hereto as Exhibit 99.2 - Kansas City
                                        Southern Operating Statements, Kansas
                                        City Southern Railway Carloadings by
                                        Commodity, Kansas City Southern
                                        Consolidated Balance Sheets

ITEM 9.  REGULATION FD DISCLOSURE

Kansas City Southern  ("KCS" or  "Company")  is furnishing  under Item 9 of this
Current Report on Form 8-K the information  included as Exhibit 99.1 and Exhibit
99.2 of this report.  Exhibit 99.1 is the Company's press release, dated January
30, 2003,  announcing  KCS's fourth  quarter and year to date 2002  earnings and
operating  results.  Included in Exhibit 99.2 are  schedules  regarding  certain
financial  information discussed at the Company's fourth quarter 2002 conference
call.

The information  included in this Current Report on Form 8-K,  including Exhibit
99.1 and Exhibit 99.2,  is furnished  pursuant to Item 9 and shall not be deemed
to be "filed" for the purposes of Section 18 of the  Securities  Exchange Act of
1934 or otherwise subject to the liabilities of that Section.

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: February 3, 2003                 By:         /S/  LOUIS G. VAN HORN
                                          --------------------------------------
                                                      Louis G. Van Horn
                                               Vice President and Comptroller
                                               (Principal Accounting Officer)
EXHIBIT 99.1

KANSAS CITY SOUTHERN                                               PRESS RELEASE
427 WEST 12TH STREET, KANSAS CITY, MISSOURI 64105               NYSE SYMBOL: KSU

     Date:                 January 30, 2003

     Media Contact:        William H. Galligan                816/983-1551
                           william.h.galligan@kcsr.com

             KANSAS CITY SOUTHERN REPORTS HIGHER FOURTH QUARTER AND

                           YEAR TO DATE 2002 EARNINGS

EARNINGS ANALYSIS & COMMENTARY

Kansas City Southern ("KCS" or the "Company")  (NYSE:KSU) reported net income of
$17.4  million  (28(cent) per diluTED  share) for the fourth  quarter of 2002, a
$6.3 million  increase  over net income of $11.1  million  (18(cent) per diluted
share) for the fourth quarter of 2001. These results were driven by the strength
of equity in earnings  from the  Company's  investment  in Grupo  Transportacion
Ferroviaria  Mexicana,  S.A. de C.V.  ("Grupo  TFM"),  which  contributed  $15.2
million to the Company's quarterly  earnings,  a $10.2 million increase over the
fourth quarter of 2001. Other positive  contributing  factors during the quarter
included a decline in the income tax provision of $2.6  million,  a $1.1 million
increase in other  income and a $0.7 million  improvement  in equity in earnings
(losses)  from other  unconsolidated  affiliates.  These  positive  factors were
partially  offset by a $3.8  million  increase  in  operating  expenses,  a $2.7
million decline in revenues and a $1.8 million increase in interest expense.

For the year ended December 31, 2002, the Company's net income was $54.2 million
(87(cent) per diluted  share)  compared to $30.7  million  (50(cent) per diluted
share) for 2001, an increase of $23.5 million.  This improvement resulted from a
$14.3  million  increase in equity in earnings  from Grupo TFM, a $13.4  million
increase in other income, a $7.8 million decline in interest expense, and a $4.4
million  gain  realized  on the  sale of  Mexrail,  Inc.  ("Mexrail")  to  KCS's
affiliate  in Mexico,  TFM,  S.A. de C.V.  ("TFM").  These items were  partially
offset by a $7.4 million decline in operating income, a $4.1 million increase in
the income tax  provision  and a $1.0 million  decline in the results from other
unconsolidated affiliates.  Additionally, net income for the year ended December
31, 2002  includes $4.3 million of debt  retirement  costs  associated  with the
early retirement of term debt in June 2002. These costs were previously reported
net of income taxes as an  extraordinary  item,  but have been  reclassified  in
accordance with the provisions of a new accounting standard.  The related income
taxes are now reflected in the income tax provision. Equity in earnings for 2001
reflects the Company's proportionate share ($9.1 million) of the income recorded
by Grupo TFM  relating  to the  reversion  of certain  concession  assets to the
Mexican  government.  Additionally,  net income for 2001 includes a $0.4 million
charge  relating to the  implementation  of Statement  of  Financial  Accounting
Standards  No.  133,   "Accounting   for  Derivative   Instruments  and  Hedging
Activities."  This charge was presented as a cumulative  effect of an accounting
change, net of income taxes in 2001.

Diluted earnings per share information is as follows:
FOURTH QUARTER                     YEAR TO DATE

                                                              ---------------------------       ----------------------------
                                                                 2002            2001              2002             2001
                                                              -----------     -----------       -----------      -----------

  U.S. operations                                             $    0.10       $    0.16         $    0.45        $    0.33
  Grupo TFM and PCRC (includes allocated interest)                 0.18            0.02              0.42             0.18
                                                              -----------     -----------       -----------      -----------
  INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE             0.28            0.18              0.87             0.51

Cumulative effect of accounting change, net of income taxes         -               -                 -              (0.01)
                                                              -----------     -----------       -----------      -----------
      Diluted earnings per share - Net income                 $    0.28       $    0.18         $    0.87        $    0.50
                                                              -----------     -----------       -----------      -----------
FOURTH QUARTER
During the fourth quarter of 2002, the Company's consolidated revenues decreased
$2.7 million and consolidated  operating  expenses rose $3.8 million compared to
the fourth  quarter of 2001,  resulting in a $6.5  million  decline in operating
income quarter to quarter.  The majority of the revenue  decline  related to the
Kansas City Southern Railway Company ("KCSR"), the Company's principal operating
subsidiary.

Although KCSR revenues  declined $2.0 million  during the fourth quarter of 2002
compared to the fourth quarter of 2001,  KCSR continued to experience  favorable
revenue  trends in three of its five major  commodity  groups.  On a comparative
basis,  combined revenues for chemical and petroleum products,  paper and forest
products  and  agriculture  and mineral  products  increased  over 4% during the
fourth quarter of 2002 driven by higher  traffic  volumes,  increased  length of
haul and price  improvements  in key  traffic  lanes.  These  quarter to quarter
revenue  improvements  were offset by lower  revenues for coal and  intermodal &
automotive  business.  Although  overall net tons of coal  delivered  during the
fourth  quarter  increased  4% compared to the prior year quarter as a result of
increased  customer  demand,  coal  revenues  declined  $5.3 million  quarter to
quarter  primarily  because of a contractual  rate reduction at a major customer
that took  effect on January 1, 2002.  Also  impacting  quarterly  coal  revenue
comparisons was the expiration of a coal customer's  contract effective April 1,
2002.  Automotive  revenues  declined $2.3 million quarter to quarter due to the
loss of certain traffic effective May 2002.

Fourth quarter 2002 costs and expenses for KCSR increased $3.7 million  compared
to the prior year  quarter  resulting  from higher  costs for  compensation  and
benefits,  fuel,  purchased  services,  car hire and  depreciation.  These  cost
increases  were  partially  offset by lower  casualties  and insurance  expense.
Fringe benefits  increased  mostly as a result of higher health  insurance costs
and an unfavorable  adjustment for health care related post employment  benefits
determined through a third-party actuarial analysis.  The increase in fuel costs
was related to higher fuel prices partially  offset by improved  utilization and
purchased  services  rose as a result of higher car repair costs and an increase
to the  reserve  for  environmental  liabilities  related  to a  specific  site.
Compensation  and car hire costs  increased due mostly to the lingering  effects
from the  issues  surrounding  the  third  quarter  2002  implementation  of the
Company's new  transportation  operating  platform,  Management  Control  System
("MCS"). By mid-November,  however, the Company's operations began to experience
improved transit times and terminal  activities as MCS capabilities  began to be
fully  integrated  into KCS  management  processes.  Depreciation  expense  also
increased due to the  implementation  of MCS.  Casualties and insurance  expense
declined  substantially during the fourth quarter of 2002 compared to the fourth
quarter of 2001 due to a decline in personal injury  expenses,  lower derailment
expenses and the favorable settlement of an insurance claim. The net increase in
expenses  contributed  to a higher KCSR  operating  ratio of 88.6% in the fourth
quarter  of 2002  compared  to  84.8%  for  the  same  period  in  2001,  but an
improvement of 5.68  percentage  points over the operating  ratio from the third
quarter of 2002.

The Company's  equity in earnings from Grupo TFM increased  approximately  $10.2
million  quarter to quarter.  Exclusive of the results from  Mexrail,  which was
acquired  by TFM on March 27,  2002,  fourth  quarter  2002  Grupo TFM  revenues
declined  approximately  3%  compared to the fourth  quarter of 2001.  Operating
expenses  decreased  approximately  7%  quarter  to  quarter  (under  accounting
principles  generally  accepted in the United States of America - "U.S.  GAAP").
Fourth  quarter 2002 results for Grupo TFM include a $36.0 million  deferred tax
benefit  (calculated under U.S. GAAP) compared to a deferred tax benefit of $1.7
million  in the  fourth  quarter  of 2001.  The  variance  in the  deferred  tax
calculation  of Grupo TFM is mostly  attributable  to  fluctuations  in the peso
exchange  rate and tax benefits  derived from the impact of inflation in Mexico.
The  Company  reports its equity in Grupo TFM under U.S.  GAAP,  while Grupo TFM
reports under International Accounting Standards ("IAS").
Equity in losses from other  unconsolidated  affiliates was $0.5 million for the
fourth  quarter of 2002  compared to losses of $1.2  million for the  comparable
2001 quarter.  This improvement  partially relates to the sale of Mexrail in the
first quarter of 2002 as during the fourth quarter of 2001 the Company  reported
equity in losses from Mexrail of $1.5 million.  Also impacting this change was a
decline in equity in earnings from both Southern Capital Corporation  ("Southern
Capital") and the Panama Canal Railway Company  ("PCRC").  PCRC is currently not
operating at full capacity due to delays in the completion of the port of Balboa
expansion.  The Balboa port  expansion is expected to be complete by December of
2003 at which time the  revenues of PCRC are  anticipated  to  increase  and the
financial performance of PCRC is expected to improve.

KCS's  consolidated  fourth quarter 2002 interest expense increased $1.8 million
from the prior year  quarter  as a result of a higher  effective  interest  rate
partially offset by a lower debt balance.

YEAR TO DATE
For the year ended  December  31, 2002,  the  Company's  consolidated  operating
income  declined  $7.4 million  compared to 2001 as a result of a $17.0  million
decrease  in  revenues,  partially  offset by lower  operating  expenses,  which
declined $9.6 million year over year.  In 2002,  KCSR  revenues  declined  $12.7
million  compared to 2001,  primarily  as a result of lower coal and  automotive
revenue,  partially  offset by higher  revenue  for all  other  major  commodity
groups.  These  revenue  fluctuations  resulted  from  trends  similar  to those
discussed  in the fourth  quarter  analysis.  Revenue  from  other  subsidiaries
decreased  approximately $4.3 million year over year due to demand driven volume
declines.  KCSR's 2002 costs and expenses were $6.1 million lower than the prior
year due  mostly to a decline in costs  associated  with  fuel,  casualties  and
adjustments related to insurance settlements,  partially offset by higher fringe
benefit  costs,  purchased  services  and  depreciation  expense.  Year  to date
operating results were adversely  impacted by the MCS related  congestion issues
that significantly  impacted third quarter  operations.  The operating ratio for
KCSR was 89.2% for 2002 compared to 88.3% for 2001.

The Company's  equity in earnings from Grupo TFM increased  approximately  $14.3
million  year to year.  In 2001,  equity in  earnings  reflected  the  Company's
proportionate  share ($9.1 million) of the income recorded by Grupo TFM relating
to the  reversion  of  certain  concession  assets  to the  Mexican  government.
Exclusive  of this 2001  income,  KCS's 2002 equity in  earnings  from Grupo TFM
increased $23.4 million compared to 2001.  Exclusive of the results from Mexrail
for 2002, Grupo TFM's revenues  decreased  approximately 1% compared to 2001 and
operating  expenses (under U.S. GAAP) were  approximately 5% lower (exclusive of
the 2001 reversion  income).  For the year ended December 31, 2002,  Grupo TFM's
results  include an $84.8 million  deferred tax benefit  (calculated  under U.S.
GAAP) compared to a deferred tax expense of $10.9 million in 2001. This variance
was caused by several factors, including a deferred tax expense recorded in 2001
related  to the  income  from  the line  reversion,  the  weakening  of the peso
relative to the U.S. dollar,  as well as tax benefits derived from the impact of
Mexican  inflation  in 2002.  The  fluctuation  in the peso  exchange  rate also
contributed  to a $17.4  million  exchange loss for 2002 compared to an exchange
loss of $2.8 million for 2001.

The Company  reported equity in losses from other  unconsolidated  affiliates of
$2.4 million for 2002  compared to equity in losses of $1.4 million for 2001. In
2002,  losses associated with PCRC were $3.8 million compared to $1.6 million in
2001. As mentioned in the fourth quarter analysis,  in 2002 PCRC did not operate
at full capacity as initially planned due to the delay in completion of the port
expansion at Balboa.  During 2001, losses were primarily related to the start-up
of operations at PCRC.  Additionally,  the Company  reported  equity losses from
Mexrail of $2.1 million in 2001 compared to essentially a break-even  amount for
2002 prior to its sale to TFM. These losses were offset by equity  earnings from
Southern  Capital of $1.4 million and $2.4 million for the years ended  December
31, 2002 and 2001, respectively.
KCS's  consolidated  2002 interest expense decreased $7.8 million (15%) compared
to 2001 as a result of a lower effective  interest rate for the first six months
of 2002 as well as substantially lower overall debt balances. The Company's debt
balance at December 31, 2002 was $582.6  million  compared to $684.8  million at
September  30, 2001,  a reduction  of over $100 million  during the past fifteen
months.  Other items  affecting the Company's year to date results include gains
totaling approximately $7.4 million related to the sale of certain non-operating
properties  at a  smaller  subsidiary  and a $4.9  million  gain on the  sale of
Wyandotte  Garage  Corporation,  a former 80% owned  subsidiary  of the Company.
These items  account for the majority of the increase  noted in other income for
2002 compared to 2001. Additionally, the Company reported a $4.4 million gain on
the  sale  of  Mexrail  as a  separate  item  in the  accompanying  consolidated
statements  of income.  Finally,  as  discussed  in the  earnings  analysis  and
commentary,  the results for 2002 include $4.3 million of debt retirement  costs
associated with the early retirement of term debt in June 2002. These costs were
previously  reported as an  extraordinary  item, but have been  reclassified  in
accordance with Statement of Financial Accounting Standards No. 145, "Rescission
of FASB  Statements  No. 4, 44, and 64,  Amendment of FASB Statement No. 13, and
Technical Corrections" ("SFAS 145").

COMMENTS FROM THE CHAIRMAN
Michael R. Haverty, KCS's Chairman,  President and Chief Executive Officer said,
"the operational performance of the Company continued to improve during the last
quarter of 2002 as KCSR adapts to the  operational  discipline  required by MCS.
Key performance  measurements  for KCSR such as terminal dwell time, train speed
and average  daily crew starts are  starting  to show  improvements  compared to
third  quarter  2002  performance  levels,  which is evident  in fourth  quarter
operating  income as it more than doubled compared to the third quarter of 2002.
In 2002, the chemical and petroleum products, agriculture and minerals and paper
and forest product  commodity groups produced  revenue  increases for the fourth
quarter  and  the  full  year  as  compared  to  2001  due  to  certain   volume
improvements,  longer hauls and targeted rate increases.  Unfortunately however,
the strength in these commodity groups was offset by the significant declines in
coal and automotive  revenues as discussed above.  Our cost structure,  although
certainly  not at the level we expect,  is continuing to rebound from the issues
surrounding  MCS  implementation.  We now  have  the  management  tools  to push
productivity initiatives and drive down costs.

During 2002, Grupo TFM provided a substantial contribution to our net income and
it continues to be a significant driver of the Company's  profitability.  During
the tough economic environment facing North America over the past several years,
Grupo TFM  management  has done a tremendous job of operating the strongest rail
franchise  in Mexico and has been able to maintain  its revenue base and control
its cost structure.  When the economy begins to improve,  Grupo TFM is poised to
take  advantage  of  its  leadership   position  in  the  NAFTA   transportation
marketplace. We are continuing to await the resolution of the legal process with
respect to Grupo TFM's Value Added Tax ("VAT")  claim and are  optimistic  about
the ultimate outcome of this matter.

As we look toward 2003 and beyond, we are confident that the Company's strategic
direction under its new MCS operating  platform will provide  opportunities  for
continuous  improvement in both operational  effectiveness  and efficiency.  Our
focus  is,  and  must  be,  firmly  set on  improving  domestic  operations  and
generating  stronger growth in our operating income. To accomplish this, we must
aggressively seek opportunities to expand our revenue base,  effectively control
our cost structure through a more disciplined  operating  environment and strive
to  provide  award  winning  customer   service.   Management  is  committed  to
accomplishing  these objectives and believes that, in doing so, the Company will
be well prepared to take advantage of an economic  recovery when it occurs.  Our
commitment to the  shareholders of KCS is to strive to maximize the value of our
rail franchise and build long-term shareholder value."
KCS IS COMPRISED OF, AMONG  OTHERS,  THE KANSAS CITY  SOUTHERN  RAILWAY  COMPANY
("KCSR")  AND EQUITY  INVESTMENTS  IN GRUPO TFM,  SOUTHERN  CAPITAL  CORPORATION
("SOUTHERN CAPITAL") AND PANAMA CANAL RAILWAY COMPANY ("PCRC").

THIS PRESS  RELEASE  INCLUDES  STATEMENTS  CONCERNING  POTENTIAL  FUTURE  EVENTS
INVOLVING  THE  COMPANY  WHICH  COULD  MATERIALLY  DIFFER  FROM THE EVENTS  THAT
ACTUALLY  OCCUR.  SUCH  DIFFERENCES  COULD  BE  CAUSED  BY A NUMBER  OF  FACTORS
INCLUDING  THOSE  FACTORS  IDENTIFIED  IN A  CURRENT  REPORT  ON FORM 8-K  DATED
DECEMBER  11,  2001  FILED BY THE  COMPANY  WITH  THE  SECURITIES  AND  EXCHANGE
COMMISSION ("SEC") (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
                        CONSOLIDATED STATEMENTS OF INCOME
                  (DOLLARS IN MILLIONS, EXCEPT PER SHARE DATA)
                                   (UNAUDITED)
THREE MONTHS                     YEAR ENDED
                                                                                ENDED DECEMBER 31,                 DECEMBER 31,
                                                                             -----------------------      -------------------------
                                                                               2002          2001            2002          2001
                                                                             ----------   ----------      ----------     ----------
 REVENUES                                                                    $   144.2    $   146.9       $   566.2      $   583.2

 Costs and expenses                                                              114.2        112.1           456.8          469.8
 Depreciation and amortization                                                    16.1         14.4            61.4           58.0
                                                                             ----------   ----------      ----------     ----------
 OPERATING INCOME                                                                 13.9         20.4            48.0           55.4

 Equity in net earnings (losses) of unconsolidated affiliates:
  Grupo Transportacion Ferroviaria Mexicana, S.A. de C.V. (PRELIMINARY)           15.2          5.0            42.8           28.5
  Other                                                                           (0.5)        (1.2)           (2.4)          (1.4)
 Gain on sale of Mexrail, Inc.                                                       -            -             4.4              -
 Interest expense                                                                (11.7)        (9.9)          (45.0)         (52.8)
 Debt retirement costs                                                               -            -            (4.3)             -

 Other income                                                                      2.3          1.2            17.6            4.2
                                                                             ----------   ----------      ----------     ----------
 INCOME BEFORE INCOME TAXES AND CUMULATIVE EFFECT OF ACCOUNTING CHANGE            19.2         15.5            61.1           33.9

 Income tax provision                                                              1.8          4.4             6.9            2.8
                                                                             ----------   ----------      ----------     ----------
 INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE                             17.4         11.1            54.2           31.1
 Cumulative effect of accounting change, net of income taxes                         -            -               -           (0.4)
                                                                             ----------   ----------      ----------     ----------
 NET INCOME                                                                  $    17.4    $    11.1       $    54.2      $    30.7

 PER SHARE DATA:

 Basic Weighted Average Common shares outstanding (IN THOUSANDS)                60,987        59,035         60,336         58,598

 Basic Earnings (Loss) per Common share
        Income before cumulative effect of accounting change                 $    0.28     $    0.19      $    0.89      $    0.53
        Cumulative effect of accounting change                                       -            -               -          (0.01)
                                                                             ----------    ----------     ----------     ----------

 Net Income                                                                  $    0.28     $    0.19      $    0.89      $    0.52
                                                                             ==========    ==========     ==========     ==========

 Diluted Weighted Average Common shares outstanding (IN THOUSANDS)              62,642        61,099         62,318         60,984

 Diluted Earnings (Loss) per Common share
        Income before cumulative effect of accounting change                 $    0.28     $    0.18      $    0.87      $    0.51
        Cumulative effect of accounting change                                       -            -               -          (0.01)
                                                                             ----------    ---------       ---------      ---------

 Net Income                                                                  $    0.28     $    0.18      $    0.87      $    0.50
                                                                             ==========    ==========     ==========     ==========
EXHIBIT 99.2

KANSAS CITY SOUTHERN
OPERATING STATEMENTS
DOLLARS IN MILLIONS
FOURTH QUARTER          FOURTH QUARTER             TWELVE MONTHS          TWELVE MONTHS
                                          2002                    2001                       2002                  2001
                                   --------------------    -------------------        -------------------   --------------------
Revenues
    Freight Revenue                       $       92.2           $       88.3               $      360.1          $       346.2
    Intermodal and Automotive
     Revenue                                      13.6                   16.0                       59.9                   69.0
    Unit Coal Revenue                             25.7                   31.0                       98.7                  115.8
    Haulage Revenue                                2.5                    2.5                       10.0                   10.0
    Other Revenue                                 10.2                    9.1                       37.5                   42.2
                                   --------------------    -------------------        -------------------   --------------------
      Total Revenues                             144.2                  146.9                      566.2                  583.2
                                   --------------------    -------------------        -------------------   --------------------

Operating Expenses
    Compensation                                  34.5                   33.7                      137.1                  137.9
    Fringe Benefits                               16.2                   13.8                       60.7                   55.0
    Fuel                                          10.7                    8.6                       38.4                   43.9
    Material and Supplies                          6.8                    5.3                       29.1                   27.1
    Car Hire                                       4.8                    4.1                       19.7                   19.8
    Purchased Services                            16.1                   15.2                       59.6                   57.0
    Casualties & Insurance                         3.2                   13.7                       25.2                   42.1
    Other                                          4.2                   (0.4)                      20.1                   16.0
                                   --------------------    -------------------        -------------------   --------------------
      Net Operating Expenses                      96.5                   94.0                      389.9                  398.8
                                   --------------------    -------------------        -------------------   --------------------

Fixed Expenses
    Leases, Net                                   13.9                   14.2                       55.0                   56.8
    Depreciation                                  16.1                   14.4                       61.4                   58.0
    Taxes (Other Than Income)                      3.8                    3.9                       11.9                   14.2
                                   --------------------    -------------------        -------------------   --------------------
      Total Fixed Expenses                        33.8                   32.5                      128.3                  129.0
                                   --------------------    -------------------        -------------------   --------------------
    Total Expenses                               130.3                  126.5                      518.2                  527.8
                                   --------------------    -------------------        -------------------   --------------------

Operating Income                          $       13.9           $       20.4               $       48.0           $       55.4
                                   ====================    ===================        ===================   ====================

Note:
Certain prior year amounts have been reclassified to conform to the current year presentation.
KANSAS CITY SOUTHERN RAILWAY
CARLOADINGS BY COMMODITY - YEAR ENDED DECEMBER 31, 2002
DOLLARS IN THOUSANDS
CARLOADINGS                                                                     REVENUE

        Year to Date                %                                                    Year to Date               %
------------------------------                                                   ----------------------------
    2002             2001         Change                                            2002            2001          Change
--------------   -------------   ---------                                       ------------   -------------   -----------
                                               COAL
      205,543         197,166        4.2%         Unit Coal                        $  98,670       $ 115,825        (14.8)%
        4,487           5,167      (13.2)%        Other Coal                           2,510           2,923        (14.1)%
--------------   -------------                                                   ------------   -------------
      210,030         202,333        3.8%                     Total                  101,180         118,748        (14.8)%
--------------   -------------                                                   ------------   -------------

                                               CHEMICAL & PETROLEUM PRODUCTS
        5,846           6,704      (12.8)%        Agri Chemicals                       4,213           5,304        (20.6)%
       14,587          11,393       28.0%         Gases                               14,415          10,420         38.3%
       22,110          22,138       (0.1)%        Organic                             23,318          22,554          3.4%
       20,601          19,419        6.1%         Inorganic                           21,816          20,544          6.2%
       53,306          61,158      (12.8)%        Petroleum                           37,894          39,117         (3.1)%
       28,977          27,028        7.2%         Plastics                            29,056          26,904          8.0%
--------------   -------------                                                   ------------   -------------
      145,427         147,840       (1.6)%                    Total                  130,712         124,843          4.7%

--------------   -------------                                                   ------------   -------------

                                               AGRICULTURE AND MINERALS

       46,753          47,408       (1.4)%        Domestic Grain                      37,121          36,128          2.7%
       13,933          13,309        4.7%         Export Grain                        11,268          11,118          1.3%
       28,194          26,347        7.0%         Food Products                       24,190          22,875          5.7%
       22,236          23,467       (5.2)%        Ores and Minerals                   12,569          12,434          1.1%
       15,417          15,145        1.8%         Stone, Clay & Glass                 12,027          11,220          7.2%
--------------   -------------                                                   ------------   -------------
      126,533         125,676        0.7%                     Total                   97,175          93,775          3.6%
--------------   -------------                                                   ------------   -------------

                                               PAPER & FOREST PRODUCTS
       88,162          85,634        3.0%         Pulp/Paper                          67,556          61,195         10.4%
        6,402           6,960       (8.0)%        Scrap Paper                          3,842           3,812          0.8%
       31,215          36,184      (13.7)%        Pulpwood/Logchips                   13,448          15,037        (10.6)%
       27,448          26,268        4.5%         Lumber/Plywood                      25,753          23,109         11.4%
       18,066          19,831       (8.9)%        Metal/Scrap                         14,832          15,187         (2.3)%
        6,897           7,265       (5.1)%        Military/Other Carloads              9,358          10,799        (13.3)%
--------------   -------------                                                   ------------   -------------
      178,190         182,142       (2.2)%                    Total                  134,789         129,139          4.4%
--------------   -------------                                                   ------------   -------------

                                               INTERMODAL & AUTOMOTIVE
       12,899          34,710      (62.8)%        Automotive                           9,297          21,616        (57.0)%
      274,473         265,101        3.5%         Intermodal                          50,641          47,506          6.6%
--------------   -------------                                                   ------------   -------------
      287,372         299,811       (4.1)%                    Total                   59,938          69,122        (13.3)%
--------------   -------------                                                   ------------   -------------

      947,552         957,802       (1.1)%     TOTAL FOR BUSINESS UNITS              523,794         535,627         (2.2)%

       22,572          26,090      (13.5)%     HAULAGE                                10,025          10,025          0.0%

       (6,079)         (9,125)      33.4%      Adjustments                            (5,090)         (4,609)       (10.4)%
--------------   -------------                                                   ------------   -------------
      964,045         974,767       (1.1)%                    TOTAL                $ 528,729       $ 541,043         (2.3)%
==============   =============                                                   ============   =============

NOTE:

CERTAIN PRIOR YEAR AMOUNTS HAVE BEEN RECLASSIFIED TO CONFORM TO THE CURRENT YEAR PRESENTATION.
KANSAS CITY SOUTHERN RAILWAY
CARLOADINGS BY COMMODITY - FOURTH QUARTER 2002
DOLLARS IN THOUSANDS
CARLOADINGS                                                                     REVENUE

        Fourth Quarter                %                                                    Fourth Quarter               %
------------------------------                                                   ----------------------------
    2002             2001         Change                                            2002            2001         Change
--------------   -------------   ---------                                       ------------   -------------   ----------

                                               COAL
       53,340          52,899        0.8%         Unit Coal                        $  25,763       $  30,989       (16.9)%
        1,334           1,441       (7.4)%        Other Coal                             762             803        (5.1)%
--------------   -------------                                                   ------------   -------------
       54,674          54,340        0.6%                                             26,525          31,792       (16.6)%
--------------   -------------                                                   ------------   -------------

                                               CHEMICAL & PETROLEUM PRODUCTS
        1,442           1,777      (18.9)%        Agri Chemicals                       1,040           1,391       (25.2)%
        3,916           2,989       31.0%         Gases                                3,946           2,746        43.7%
        5,271           5,359       (1.6)%        Organic                              5,844           5,690         2.7
        5,448           4,825       12.9%         Inorganic                            5,520           5,171         6.7%
       13,054          14,179       (7.9)%        Petroleum                            8,931           9,375        (4.7)%
        6,997           6,886        1.6%         Plastics                             7,298           6,647         9.8%
--------------   -------------                                                   ------------   -------------
       36,128          36,015        0.3%                     Total                   32,579          31,020         5.0%
--------------   -------------                                                   ------------   -------------

                                               AGRICULTURE AND MINERALS
       12,112          11,599        4.4%         Domestic Grain                      10,233           8,976        14.0%
        4,151           4,838      (14.2)%        Export Grain                         3,213           4,344       (26.0)%
        7,432           6,581       12.9%         Food Products                        6,412           5,845         9.7%
        5,837           5,516        5.8%         Ores and Minerals                    3,336           2,864        16.5%
        3,493           3,666       (4.7)%        Stone, Clay & Glass                  2,839           2,738         3.7%

--------------   -------------                                                   ------------   -------------
       33,025          32,200        2.6%                     Total                   26,033          24,767         5.1%
--------------   -------------                                                   ------------   -------------

                                               PAPER & FOREST PRODUCTS
       22,554          22,386        0.8%         Pulp/Paper                          17,858          16,530         8.0%
        1,805           1,882       (4.1)%        Scrap Paper                          1,134           1,072         5.8%
        6,791           9,238      (26.5)%        Pulpwood/Logs/Chips                  3,336           3,852       (13.4)%
        6,579           6,301        4.4%         Lumber/Plywood                       6,570           5,745        14.4%
        4,162           3,545       17.4%         Metal/Scrap                          3,345           2,565        30.4%
        1,472           1,640      (10.2)%        Military/Other carloads              1,789           2,978       (39.9)%
--------------   -------------                                                   ------------   -------------
       43,363          44,992       (3.6)%                     Total                  34,032          32,742         3.9%
--------------   -------------                                                   ------------   -------------

                                               INTERMODAL & AUTOMOTIVE

        1,722           6,068      (71.6)%        Automotive                           1,497           3,833       (60.9)%
       63,078          67,222       (6.2)%        Intermodal                          12,110          12,249        (1.1)%
--------------   -------------                                                   ------------   -------------
       64,800          73,290      (11.6)%                     Total                  13,607          16,082       (15.4)%
--------------   -------------                                                   ------------   -------------

      231,990         240,837       (3.7)%     TOTAL FOR BUSINESS UNITS              132,776         136,403        (2.7)%

        4,874           6,362      (23.4)%      HAULAGE                                2,480           2,501        (0.8)%

       (1,145)         (2,097)      45.4%       Adjustments                           (1,275)         (1,128)      (13.0)%
--------------   -------------                                                   ------------   -------------

      235,719         245,102       (3.8)%                     TOTAL               $ 133,981       $ 137,776        (2.8)%
==============   =============                                                   ============   =============

NOTE:

CERTAIN PRIOR YEAR AMOUNTS HAVE BEEN RECLASSIFIED TO CONFORM TO THE CURRENT YEAR PRESENTATION.
KANSAS CITY SOUTHERN
CONSOLIDATED BALANCE SHEETS                                          PRELIMINARY
DECEMBER 31, 2002             DECEMBER 31, 2001
                                                     -----------------             -----------------
                                                        (UNAUDITED)

ASSETS

  Cash                                                        $      19.0                   $      24.7
  Accounts receivable                                               115.9                         130.0
  Inventories                                                        34.2                          27.9
  Other current assets                                               44.5                          71.8
                                                   -----------------------       -----------------------
     Total current assets                                           213.6                         254.4

  Investments                                                       420.1                         386.8
  Properties, net of depreciation                                 1,337.4                       1,327.4
  Other assets                                                       32.1                          42.3
                                                   -----------------------       -----------------------

      Total assets                                            $   2,003.2                   $   2,010.9
                                                   =======================       =======================

LIABILITIES AND STOCKHOLDERS' EQUITY

  Current portion of long-term debt                           $      10.0                   $      46.7
  Accounts payable                                                   44.6                          50.4
  Accrued liabilities                                               128.6                         150.0
                                                   -----------------------       -----------------------
     Total current liabilities                                      183.2                         247.1

  Long-term debt                                                    572.6                         611.7
  Deferred income taxes                                             392.8                         370.2
  Other                                                             104.2                         101.6
  Stockholders' equity                                              750.4                         680.3
                                                   -----------------------       -----------------------

    Total liabilities and stockholders' equity                $   2,003.2                   $   2,010.9
                                                   =======================       =======================