SECURITIES AND EXCHANGE COMMISSION

                           WASHINGTON, D.C. 20549

                                    FORM 8-K


                               CURRENT REPORT
                   Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934


              Date of Report (Date of earliest event reported):
                              October 25, 2000


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


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


              114 West 11th Street, Kansas City, Missouri 64105
             (Address of principal executive offices) (Zip Code)


              Company's telephone number, including area code:
                                (816) 983 - 1303


                                 Not Applicable
        (Former name or former address if changed since last report)









<PAGE>





Item 9.     Regulation FD Disclosure

Following the close of the New York Stock  Exchange on October 25, 2000,  Kansas
City Southern  Industries,  Inc.  ("KCSI" or  "Company")  issued a press release
announcing its third quarter and year to date 2000 operating results. On October
26, 2000, the Company held its third quarter  presentation,  which was available
to shareholders and other interested  parties via telephone or the KCSI web site
at  http://www.kcsi.com.  Interested  parties  may  hear a replay  of our  third
quarter presentation by calling 1-888-203-1112,  code 485612. The replay will be
available for one week following the  presentation.  The slides presented at the
presentation  are  available at  http://www.kcsi.com  by  selecting  the analyst
presentation  option  under the "For  Investor - KSU  Stock"  section of our web
site.  The press  release,  included as Exhibit 99.1 hereto,  and certain  other
information  distributed at the  presentation,  included as exhibit 99.2 hereto,
are being  furnished under Item 9 of this Current Report on Form 8-K pursuant to
Regulation  FD. The  information  in this report  (including  the  exhibits)  is
furnished pursuant to Item 9 and shall not be deemed to be filed.

Item 7.     Financial Statements and Exhibits

(c)         Exhibits

            Exhibit No.                         Document
            (99)                                Additional Exhibits

            99.1                                Press Release issued by
                                                Kansas City Southern
                                                Industries, Inc. dated
                                                October 25, 2000 entitled,
                                                "Kansas City Southern
                                                Industries Reports Improved
                                                Third Quarter and Year to
                                                Date Income from Continuing
                                                Operations", is attached
                                                hereto as Exhibit 99.1


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






<PAGE>












SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company
has duly  caused  this  Report  to be signed  on its  behalf by the  undersigned
hereunto duly authorized.


                                           Kansas City Southern Industries, Inc.


Date: October 31, 2000                     By: /s/  Louis G. Van Horn
                                                    Louis G. Van Horn
                                            Vice President and Controller
                                            (Principal Accounting Officer)


<PAGE>


EXHIBIT 99.1
Release No:2000-08            Date:          October 25, 2000

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

NYSE Symbol: KSU

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

Spin-off of Stilwell Financial Inc.
On July 12, 2000,  Kansas City Southern  Industries,  Inc. ("KCSI" or "Company")
completed its spin-off of Stilwell Financial Inc. ("Stilwell") through a special
dividend of Stilwell  common stock  distributed to KCSI common  stockholders  of
record on June 28, 2000  ("Spin-off").  The Spin-off occurred after the close of
business  of the New York  Stock  Exchange  on July  12,  2000,  and  each  KCSI
stockholder  received  two shares of the common  stock of Stilwell for every one
share of KCSI  common  stock  owned on the record  date.  The  Internal  Revenue
Service has ruled that the Spin-off  will not be taxable for Federal  income tax
purposes to KCSI or KCSI  stockholders.  Also on July 12, 2000, KCSI completed a
reverse  stock split whereby every two shares of KCSI common stock was converted
into one share of KCSI common stock.  KCSI common  stockholders  had  previously
approved this reverse stock split.  The results of operations  discussed  herein
provide information only related to the continuing operations of KCSI, exclusive
of the discontinued operations of Stilwell.

Earnings Analysis and Commentary
KCSI  reported  third  quarter 2000 income from  continuing  operations  of $5.2
million  (9 cents  per diluted  share)  compared to $4.6  million (8 cents  per
diluted share) in the third quarter of 1999. This $0.6 million (13%) improvement
resulted  primarily  from an increase in U.S.  operating  income of $4.1 million
(28%) and a decrease  in the  income tax  provision  of $1.2  million  partially
offset  by  a  $1.2  million  decrease  in  equity  earnings  related  to  Grupo
Transportacion  Ferroviaria Mexicana, S.A. de C.V. ("Grupo TFM") and an increase
in interest  expense of $3.6  million.  KCSI's  consolidated  third quarter 2000
revenue decline of $5.0 million was more than offset by a $9.1 million reduction
in operating expenses, resulting in improved operating income.

For the nine months ended September 30, 2000, income from continuing  operations
increased  $7.0 million (40%) to $24.4 million, or 42 cents  per diluted share,
from $17.4  million, or 30 cents per diluted  share, for the nine months ended
September 30, 1999. A $14.0 million  increase in equity  earnings from Grupo TFM
and a $6.1  million  decrease  in the income tax  provision  for the nine months
ended  September 30, 2000 were partially  offset by a decline in U.S.  operating
income of $3.6  million and an increase  in interest  expense of $10.9  million.
Consolidated  revenues  declined  2.7%  while  consolidated  operating  expenses
declined  2.2% for the nine months ended  September  30, 2000  compared with the
same 1999 nine-month period.

During the third quarter of 2000,  the Company  refinanced  $200 million of bank
debt due  January  11,  2001  with a $200  million  offering  of  8-year  senior
unsecured   notes.   In  connection   with  this   refinancing,   KCSI  recorded
extraordinary debt retirement costs of approximately $1.1 million (net of income
taxes).  Additionally,  during the third quarter of 2000,  Grupo TFM  refinanced
$300 million of bank debt with a U.S.  Commercial  Paper program.  KCSI recorded
its proportionate  share of extraordinary  debt retirement costs of $1.7 million
(net of income  taxes)  related to this  refinancing  by Grupo TFM.  Total third
quarter  2000  extraordinary charges of $2.8  million,  or 5 cents per diluted
share,  reduced  income from  continuing  operations  from $5.2  million to $2.4
million, or 4 cents per diluted share.

In anticipation of the Spin-off,  the Company  re-capitalized its debt structure
during January 2000 whereby KCSI retired approximately $398 million in long-term
indebtedness  prior to their scheduled  maturities.  Accordingly,  KCSI recorded
extraordinary debt retirement costs of approximately $5.9 million (net of income
taxes),   or  10 cents  per  diluted  share, in  first  quarter  2000.   Total
extraordinary  items for the nine months ended  September  30, 2000 totaled $8.7
million  (net of income  taxes) or  15 cents  per  diluted  share.  Income from
continuing  operations adjusted for these extraordinary items was $15.7 million,
or 27 cents per diluted share for the nine months ended September 30, 2000.

<PAGE>


Diluted Earnings per Share and Common Shares Comparison
<TABLE>

                                      Third Quarter             Year to Date
<S>                                     <C>       <C>            <C>       <C>
                                        2000       1999          2000      1999
Income from continuing operations:
  U.S. operations                     $ 0.13     $ 0.07        $  0.36   $ 0.37
  Grupo TFM and associated interest    (0.04)      0.01           0.06    (0.07)
                                     --------   -------       --------  -------
  Income from continuing operations     0.09       0.08           0.42     0.30
Extraordinary debt retirement costs    (0.05)         -          (0.15)       -
                                     --------   -------       --------  -------
  Total diluted earnings per
share from continuing operations,
adjusted for the extraordinary items  $ 0.04     $ 0.08        $  0.27    $0.30
                                     --------   -------       --------  -------

Weighted Average Diluted
   Common Shares Outstanding           59,100   57,047         58,185    56,989
(thousands)  (1)
</TABLE>

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


Third Quarter
Following  the Spin-off of Stilwell  from the Company on July 12, 2000,  KCSI is
comprised of, among others,  The Kansas City Southern Railway Company  ("KCSR"),
Gateway Western Railway Company  ("Gateway  Western") and equity  investments in
Grupo TFM and Mexrail,  Inc. KCSI reported income from continuing  operations of
$5.2  million for the three  months ended  September  30, 2000  compared to $4.6
million in the same 1999 period.

KCSI's  consolidated  third quarter 2000 revenues  totaled $144.1 million versus
$149.1  million in third  quarter  1999.  This $5.0  million  decrease  resulted
primarily from lower combined  KCSR/Gateway  Western  revenues of  approximately
$4.4 million.  Growth in paper and forest  product and automotive  revenues,  as
well as improved  revenues per carload in most lines of business  were offset by
declines  in unit coal and  chemical  and  petroleum  revenues.  Lower unit coal
revenues  resulted from a reduction in tons  delivered and changes in the length
of haul. Miscellaneous chemical revenues were lower due to demand driven traffic
declines while soda ash revenues  declined  because of a new export  terminal on
the origin  railroad,  which led to substantial  volume  reductions.  Automotive
revenues improved during the third quarter of 2000 as a result of traffic growth
arising  from  continued  marketing  efforts and the  initiation  of  automotive
transload  services  at the Kansas  City  International  Freight  Gateway at the
former Richards-Gebaur Airbase.

KCSI's  consolidated  operating costs and expenses decreased $9.1 million (6.8%)
in the third  quarter of 2000 compared to the third quarter of 1999. In spite of
diesel fuel costs,  which rose  approximately  42% in the third  quarter of 2000
compared to the same period in 1999, third quarter 2000 operating costs declined
primarily due to operational  efficiencies  at KCSR and Gateway  Western.  These
operational  improvements led to a quarter over quarter decrease in salaries and
wages, car hire, purchased services,  and casualties and insurance expenses.  In
addition to higher fuel costs,  these declines were  partially  offset by higher
lease expense  associated with 50 new locomotives leased in fourth quarter 1999.
The combined  KCSR/Gateway  Western  operating  ratio for third quarter 2000 was
87.0% compared to 87.8% in the same 1999 period.

Excluding the impact of the extraordinary item discussed above,  equity earnings
related to the Company's  investment in Grupo TFM declined $1.2 million  quarter
to quarter.  Grupo TFM  revenues  improved  25% to $165.2  million for the third
quarter of 2000 from $132.1 million for the third quarter of 1999.  These higher
revenues  were  partially  offset by an  approximate  21%  increase in operating
expenses  arising  primarily  from  higher  fuel costs (87%) and higher car hire
costs (123%) due to increased  traffic volumes and congestion  related issues at
the U.S. - Mexican border.  Despite the impact of these higher  operating costs,
operating  income  rose  approximately  39% quarter to quarter  resulting  in an
operating  ratio of 76.9% in the third quarter of 2000 versus 79.1% in the third
quarter of 1999.  However,  Grupo TFM's third quarter 2000 results were impacted
by an  increase in other  expenses  related  primarily  to losses on the sale of
certain  property  and  inventory.  Additionally,  third  quarter  1999  results
included a $10.7 million deferred tax benefit  (calculated under U.S.  generally
accepted  accounting  principles - "U.S.  GAAP") caused by a weakening peso. For
the third  quarter of 2000,  the deferred tax benefit  under U.S.  GAAP was $0.1
million  (excluding the impact of the  extraordinary  item). The Company reports
its  equity  in Grupo  TFM  under  U.S.  GAAP  while  Grupo  TFM  reports  under
International Accounting Standards.

KCSI interest  expense in the third quarter of 2000 increased 24% from the prior
year quarter due to higher  interest  rates and  amortization  of debt  issuance
costs associated with the January 2000 debt re-capitalization.

Year to Date

The Company's  income from  continuing  operations for  the  nine
months ended September 30, 2000 totaled $24.4  million  versus $17.4 million in
the same  1999  period  (a 40% improvement).   KCSI's   consolidated   revenues
declined  approximately  2.7%, while operating expenses declined 2.2% period to
period.

Year to date  combined  KCSR/Gateway  Western  revenues  decreased  $7.2 million
primarily as a result of declines in coal,  export grain and  chemical/petroleum
revenues.  Similar to third quarter,  these  declines were  partially  offset by
increases  in  paper/forest   and   intermodal/automotive   revenues.   Combined
KCSR/Gateway Western operating costs decreased approximately $1.6 million period
to period primarily as a result of improvements in salaries/wages,  car hire and
materials/supplies  expenses  partially  offset by higher  fuel  costs and lease
expense (as discussed above). The combined  KCSR/Gateway Western operating ratio
was 86.0% for the nine months ended September 30, 2000 compared to 84.9% for the
nine months ended September 30, 1999.

Excluding the impact of the Grupo TFM extraordinary item discussed above, equity
earnings  from  Grupo TFM  improved  $14.0  million  for the nine  months  ended
September 30, 2000 compared to the nine months ended  September 30, 1999.  Grupo
TFM's revenues increased 24% period to period,  while operating income increased
nearly 45%  resulting in an  operating  ratio of 72.4% for the nine months ended
September 30, 2000 compared to 76.4% for the same prior period. Under U.S. GAAP,
the deferred tax benefit for Grupo TFM was $18.9 million  (excluding  the impact
of the extraordinary item) for the nine months ended September 30, 2000 compared
to a deferred tax benefit of $5.0 million for the same period in 1999.


Business Outlook

Michael R. Haverty,  KCSI President and Chief Executive  Officer,  said, "We are
pleased with the ongoing  results of our investment in Grupo TFM as well as with
KCSR's  success  in  maintaining  an  effective  operating  cost  structure.  We
continue,  however, to feel the impact of competitive revenue pressures and high
interest costs.

Grupo TFM's  incredible  growth  story  continues  as year to date  revenues and
operating  profit have increased  nearly 24% and 45%,  respectively.  Our equity
earnings  from  Grupo TFM for the nine  months  ended  September  30,  2000 have
increased  $14 million,  or almost 300%,  compared with the same 1999 period and
have been the  primary  contributor  to our income  from  continuing  operations
during 2000.  KCSI management  believes that Grupo TFM has merely  scratched the
surface of its  potential  as a leader in NAFTA  traffic  in the North  American
marketplace.

Over the course of 2000, we have significantly  improved the efficiency and cost
structure of our U.S. railroad operations.  Although there is not much we can do
to impact the price of diesel fuel, we believe we have done an  outstanding  job
of  improving  our fuel  efficiency  through the lease of 50 new  fuel-efficient
locomotives  in late 1999 as well as an  aggressive  fuel  conservation  program
initiated in mid-1999.  Additionally, we continue to see decreases in the number
of foreign  owned cars  on-line  resulting  in lower car hire  payments to other
railroads  and have reduced our salaries and wages  through the reduction of the
amount of overtime hours worked and the number of relief crews used as well as a
reduction in total employee count.

Domestically,  however, we continue to be affected by highly competitive revenue
pressures and higher interest  costs. To combat these issues,  our primary focus
is to  increase  revenues  and reduce  debt.  Through our  strategic  alliances,
marketing  agreements,  the new  International  Freight  Gateway  at the  former
Richards-Gebaur  Airbase, and access to six additional chemical customers in the
Geismar,  Louisiana  industrial  area,  we have the  opportunity  to improve our
revenue base.  We have also  developed a plan to reduce debt through the sale of
non-core   assets,   reduced  capital  spending  and  improved  cash  flow  from
operations.

KCSI  management is committed to maximizing the potential of the NAFTA franchise
and is continuously seeking opportunities to enhance shareholder value."


This press  release  includes  statements  concerning  potential  future  events
involving  the  Company,  which  could  materially  differ  from the events that
actually occur. The differences could be caused by a number of factors including
those  factors  identified  in KCSI's  December 31, 1999 Form 10-K,  the Current
Report on Form  8-K/A  dated June 3, 1997,  each filed by the  Company  with the
Securities and Exchange  Commission  (Commission  file no. 1-4717).  The Company
will not update any forward-looking  statements in this press release to reflect
future events or developments.

                        (Financial Information Attached)

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


                                                            <S>               <C>
                                             Three Months Ended    Nine Months Ended
                                                September 30,        September 30,
                                              -----------------     ----------------
</TABLE>
<TABLE>
<S>                                             <C>       <C>       <C>      <C>
                                                 2000      1999       2000     1999
                                               -------   -------    -------  -------
          Revenues                            $ 144.1    $149.1     $437.4   $449.7
          Costs and expenses                    111.6     120.2      339.9    348.0
          Depreciation and amortization          13.8      14.3       42.4     43.0
                                               -------   -------    -------  -------
          Operating income                       18.7      14.6       55.1     58.7

          Equity in net earnings of unconsolidated affiliates:
              Grupo Transportacion Ferroviaria
               Mexicana, S.A. de C.V.             2.6       3.8       18.8      4.8
              Other                               1.5       1.3        3.3      3.5
          Interest expense                      (18.3)    (14.7)     (54.2)   (43.3)
          Other, net                              1.2       1.3        4.8      3.2
                                               -------   -------    -------  -------

          Pretax income                           5.7       6.3       27.8     26.9
          Income tax provision                    0.5       1.7        3.4      9.5
                                               -------   -------    -------  -------
          Income from continuing operations       5.2       4.6       24.4     17.4
            Extraordinary items,  net of tax:
             Debt retirement costs - KCSR/KCSI   (1.1)        -       (7.0)       -
             Debt retirement costs - TFM         (1.7)        -       (1.7)       -
                                               -------   -------    -------  -------

          Income from continuing operations,
           net of extraordinary items            $2.4      $4.6      $15.7    $17.4
                                               -------   -------    -------  -------

          Per Share  Data:
          --------------------------------------------------------------------------
          Basic Earnings per Common Share
           from continuing operations           $0.09     $0.08      $0.43    $0.31
          Basic Earnings per Common Share -
           extraordinary items                  (0.05)        -      (0.15)       -
                                               -------   -------    -------  -------
          Basic Earnings per Common Share,
           net of the extraordinary items       $0.04     $0.08      $0.28    $0.31
                                               -------   -------    -------  -------
          Weighted Average Common shares
           outstanding (in thousands)          57,478    55,242     56,353   55,102
                                               -------   -------    -------  -------

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

          Diluted Earnings per Common Share
           from continuing operations           $0.09     $0.08      $0.42    $0.30
          Diluted Earnings per Common Share -
           extraordinary items                  (0.05)        -      (0.15)       -
                                               -------   -------    -------  -------
          Diluted Earnings per Common Share,
           net of extraordinary items           $0.04     $0.08      $0.27    $0.30
                                               -------   -------    -------  -------

          Diluted Common shares outstanding
           (in thousands)                      59,100    57,047     58,185   56,989
                                               -------   -------    -------  -------

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

</TABLE>





<PAGE>


EXHIBIT 99.2


Combined KCSR and Gateway Western
Operating Statements
Dollars in Millions

<TABLE>
<S>                                     <C>         <C>               <C>          <C>

                               Third           Third          Nine Months     Nine Months
                              Quarter         Quarter
                                2000            1999              2000            1999
                            -------------   -------------     -------------   -------------
Revenues
    Freight Revenue                $87.4           $88.3            $265.3          $268.4
    Intermodal and
      Automotive Revenue            15.9            15.7              47.0            43.0
    Unit Coal Revenue               26.7            30.0              81.4            85.7
    Other Revenue                   12.5            12.9              37.1            41.0
                            -------------   -------------     -------------   -------------
      Total Revenues               142.5           146.9             430.8           438.1
                            -------------   -------------     -------------   -------------

Operating Expenses
    Salaries & Wages                35.0            36.8             103.6           107.6
    Fringe Benefits                 13.8            13.7              41.3            39.9
    Fuel                            12.2             8.6              35.3            24.4
    Material and Supplies            7.5             8.7              23.6            26.5
    Car Hire                         4.1             5.8              11.1            16.4
    Purchased Services              11.1            12.7              35.9            35.8
    Casualties & Insurance           7.6             8.9              20.3            21.3
    Other                            2.1             4.1               7.0            11.9
                            -------------   -------------     -------------   -------------
    Net Operating Expenses          93.4            99.3             278.1           283.8
                            -------------   -------------     -------------   -------------

Fixed Expenses
    Leases, Net                     13.9            12.9              42.5            38.3
    Depreciation                    13.0            13.1              39.4            39.5
    Taxes (Other Than Income)        3.7             3.8              11.2            11.2
                             -------------   -------------     -------------   -------------
    Total Fixed Expenses            30.6            29.8              93.1            89.0
                            -------------   -------------     -------------   -------------
    Total Expenses                 124.0           129.1             371.2           372.8
                            -------------   -------------     -------------   -------------
Operating Income                    18.5            17.8              59.6            65.3


</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Combined Kansas City Southern Railway/Gateway Western
Carloadings By Commodity - Year to Date September 30, 2000
Dollars in Thousands

     Carloadings                                                  Revenue
    Year to Date           %                                    Year to Date         %
----------------------                                      --------------------
<S>            <C>        <C>        <C>                      <C>         <C>       <C>

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

                                      Coal
   141,498    148,041    (4.4)%       Unit Coal               81,406     85,660    (5.0)%
     2,302      2,822   (18.4)%       Other Coal                 865        853     1.4%
-----------  ---------                                      ---------  ---------
   143,800    150,863    (4.7)%                               82,271     86,513    (4.9)%
</TABLE>
<TABLE>
<CAPTION>
                                   Chemical & Petroleum Products
     <S>         <C>      <C>          <C>                      <C>       <C>       <C>
    19,810     19,739     0.4%        Plastics                18,180     18,333    (0.8)%
    51,950     54,540    (4.7)%       Misc. Chemicals         50,024     50,572    (1.1)%
     1,377      4,068   (66.2)%       Soda Ash                 1,535      4,771   (67.8)%
    25,684     26,963    (4.7)%       Petro Products          18,863     19,083    (1.2)%
    18,696     20,957   (10.8)%       Petro Coke               7,734      7,990    (3.2)%
-----------  ---------                                      ---------  ---------
   117,517    126,267    (6.9)%               Total           96,336    100,749    (4.4)%
-----------  ---------                                      ---------  ---------
</TABLE>
<TABLE>
<CAPTION>

                                   Agriculture and
                                    Minerals
      <S>         <C>       <C>        <C>                      <C>        <C>       <C>

    38,208     37,579     1.7%        Domestic Grain          28,067     27,215      3.1%
     8,386     11,229   (25.3)%       Export Grain             5,931      9,050    (34.5)%
    22,264     24,667    (9.7)%       Food Products           17,786     17,580      1.2%
    20,018     19,258     3.9%        Ores and Minerals       10,107      9,999      1.1%
    12,925     13,635    (5.2)%       Stone, Clay & Glass      9,529      9,589     (0.6)%
    19,519     17,904     9.0%        Metal/Scrap             14,913     11,923     25.1%
     5,960      9,356   (36.3)%       Military/Other Carloads  6,196      8,116    (23.7)%
-----------  ---------                                      ---------  ---------
   127,280    133,628    (4.8)%               Total           92,529     93,472     (1.0)%
-----------  ---------                                      ---------  ---------
</TABLE>
<TABLE>
<CAPTION>
                                   Paper & Forest Products
      <S>        <C>       <C>         <C>                      <C>       <C>        <C>
    68,974     69,459    (0.7)%       Pulp/Paper              48,104     46,358      3.8%
     5,243      5,660    (7.4)%       Scrap Paper              2,857      2,859     (0.1)%
    26,038     29,950   (13.1)%       Pulpwood/Logchips       10,336     11,360     (9.0)%
    21,688     21,004     3.3%        Lumber/Plywood          19,137     17,856      7.2%
-----------  ---------                                      ---------  ---------
   121,943    126,073    (3.3)%               Total           80,434     78,433      2.6%
-----------  ---------                                      ---------  ---------
</TABLE>
<TABLE>
<CAPTION>
                                   Intermodal & Automotive
     <S>         <C>       <C>         <C>                       <C>        <C>      <C>
    14,987      6,141   144.0%        Automotive               9,392      4,632    102.8%
   179,678    165,749     8.4%        Intermodal              37,617     38,384     (2.0)%
-----------  ---------                                      ---------  ---------
   194,665    171,890    13.2%                Total           47,009     43,016      9.3%
-----------  ---------                                      ---------  ---------

   705,205    708,721    (0.5)%    TOTAL FOR BUSINESS UNITS  398,579    402,183     (0.9)%
    26,288     33,157    20.7)%    Haulage                     8,290     12,933    (35.9)%
    (5,840)    (5,781)    1.0%     Adjustments                (4,902)    (5,137)    (4.6)%
-----------  ---------                                      ---------  ---------
   725,653    736,097    (1.4)%            TOTAL             401,967    409,979     (2.0)%
===========  =========                                      =========  =========



</TABLE>
<PAGE>
Combined Kansas City Southern Railway/Gateway Western
Carloadings By Commodity - Third Quarter 2000
Dollars in Thousands

      Carloadings                                                 Revenue
     Third Quarter       %                                     Third Quarter   %
----------------------                                      --------------------
<TABLE>
   <S>          <C>         <C>         <C>                    <C>        <C>       <C>
   2000        1999      Change                               2000       1999      Change
-----------  ---------   --------                           ---------  ---------   -------

                                      Coal
    48,522     51,656    (6.1)%       Unit Coal               26,689     29,994    (11.0)%
       734        750    (2.1)%       Other Coal                 335        231     45.0%
-----------  ---------                                      ---------  ---------
    49,256     52,406    (6.0)%                               27,024     30,225    (10.6)%
</TABLE>
<TABLE>
<CAPTION>
                                   Chemical & Petroleum Products
     <S>         <C>       <C>          <C>                     <C>        <C>       <C>
     6,822      6,355     7.3%        Plastics                 6,413      5,759     11.4%
    16,924     18,606    (9.0)%       Misc. Chemicals         16,155     17,043     (5.2)%
       444      1,321   (66.4)%       Soda Ash                   473      1,610    (70.6)%
     8,454      8,858    (4.6)%       Petro Products           6,282      6,232      0.8%
     6,697      6,529     2.6%        Petro Coke               2,497      2,737     (8.8)%
-----------  ---------                                      ---------  ---------
    39,341     41,669    (5.6)%               Total           31,820     33,381     (4.7)%
-----------  ---------                                      ---------  ---------
</TABLE>
<TABLE>
<CAPTION>
                                   Agriculture and
                                    Minerals
     <S>          <C>      <C>          <C>                     <C>        <C>       <C>
    11,417     10,584     7.9%        Domestic Grain           8,179      6,745     21.3%
     3,419      4,276   (20.0)%       Export Grain             2,638      3,481    (24.2)%
     7,719      7,697     0.3%        Food Products            6,060      5,447     11.3%
     6,841      6,617     3.4%        Ores and Minerals        3,344      3,380     (1.1)%
     4,069      4,608   (11.7)%       Stone, Clay & Glass      2,960      3,222     (8.1)%
     5,612      6,955   (19.3)%       Metal/Scrap              4,292      4,694     (8.6)%
     2,050      3,351   (38.8)%       Military/Other carloads  2,554      3,151    (18.9)%
-----------  ---------                                      ---------  ---------
    41,127     44,088    (6.7)%               Total           30,027     30,120     (0.3)%
-----------  ---------                                      ---------  ---------
</TABLE>
<TABLE>
<CAPTION>                          Paper & Forest Products
     <S>         <C>       <C>         <C>                      <C>      <C>        <C>
    22,855     23,198    (1.5)%       Pulp/Paper              16,581     15,558      6.6%
     1,839      1,901    (3.3)%       Scrap Paper              1,028        973      5.7%
     7,984     10,437   (23.5)%       Pulpwood/Logs/Chips      3,102      3,955    (21.6)%
     6,996      6,986     0.1%        Lumber/Plywood           6,158      6,000      2.6%
-----------  ---------                                      ---------  ---------
    39,674     42,522    (6.7)%               Total           26,869     26,486      1.4%
-----------  ---------                                      ---------  ---------
</TABLE>
<TABLE>
<CAPTION>
                                   Intermodal & Automotive
      <S>       <C>        <C>         <C>                   <C>         <C>        <C>
     4,969      2,726    82.3%        Automotive               3,297      1,979     66.6%
    68,414     61,598    11.1%        Intermodal              12,612     13,685     (7.8)%
-----------  ---------                                      ---------  ---------
    73,383     64,324    14.1%                Total           15,909     15,664      1.6%
-----------  ---------                                      ---------  ---------

   242,781    245,009    (0.9)%    TOTAL FOR BUSINESS UNITS  131,649    135,876     (3.1)%

     7,966      8,660    (8.0)%    Haulage                     2,577      3,966    (35.0)%
    (2,240)    (2,114)    6.0%     Adjustments                (1,714)    (1,909)   (10.2)%
-----------  ---------                                      ---------  ---------
   248,507    251,555    (1.2)%            TOTAL             132,512    137,933     (3.9)%
===========  =========                                      =========  =========

</TABLE>
<PAGE>
Kansas City Southern Industries, Inc.
                                                            -------------------
Consolidated Balance Sheets                                   PRELIMINARY
                                                            -------------------
Unaudited
(Dollars in Millions)
<TABLE>
<CAPTION>
                                        September 30, 2000    December 31, 1999
<S>                                                  <C>                    <C>
Assets
  Cash                                      $        30.2           $       11.9
  Accounts receivable                               119.8                  132.2
  Inventories                                        34.2                   40.6
  Other current assets                               20.8                   23.8
                                       -------------------    -------------------
        Total current assets                        205.0                  208.5

  Investments held for operating purposes           361.1                  337.1
  Properties, net of depreciation                 1,311.3                1,277.4
  Other assets                                       42.6                   34.4
                                       -------------------    -------------------
        Total assets                        $     1,920.0           $    1,857.4
                                       ===================    ===================

Liabilities and Stockholders' Equity
  Current portion of long-term debt         $        13.7           $       10.9
  Accounts payable                                   36.3                   74.8
  Accrued liabilit                                  151.1                  168.5
                                       -------------------    -------------------
     Total current liabilities                      201.1                  254.2

  Long-term debt                                    671.7                  750.0
  Deferred income taxes                             321.8                  297.4
  Other                                              83.3                   87.3
  Stockholders' equity                              642.1                  468.5
                                       -------------------    -------------------
    Total liabilities and                   $     1,920.0           $    1,857.4
    stockholders' equity               ===================    ===================
</TABLE>
[{"type": "8-K", "sequence": "1", "filename": "0001.txt", "description": "8-K", "secsgml_size_bytes": 40417}]
{"company-data": {"conformed-name": "KANSAS CITY SOUTHERN INDUSTRIES INC", "cik": "0000054480", "assigned-sic": "4011", "irs-number": "440663509", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-04717", "film-number": "750903"}, "business-address": {"street1": "114 W 11TH ST", "city": "KANSAS CITY", "state": "MO", "zip": "64105", "phone": "8169831303"}, "mail-address": {"street1": "114 WEST 11TH STREET", "city": "KANSAS CITY", "state": "MO", "zip": "64105"}}
SECURITIES AND EXCHANGE COMMISSION

                           WASHINGTON, D.C. 20549

                                    FORM 8-K

                               CURRENT REPORT
                   Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934

              Date of Report (Date of earliest event reported):
                              October 25, 2000

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

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

              114 West 11th Street, Kansas City, Missouri 64105
             (Address of principal executive offices) (Zip Code)

              Company's telephone number, including area code:
                                (816) 983 - 1303

                                 Not Applicable
        (Former name or former address if changed since last report)
Item 9.     Regulation FD Disclosure

Following the close of the New York Stock  Exchange on October 25, 2000,  Kansas
City Southern  Industries,  Inc.  ("KCSI" or  "Company")  issued a press release
announcing its third quarter and year to date 2000 operating results. On October
26, 2000, the Company held its third quarter  presentation,  which was available
to shareholders and other interested  parties via telephone or the KCSI web site
at  http://www.kcsi.com.  Interested  parties  may  hear a replay  of our  third
quarter presentation by calling 1-888-203-1112,  code 485612. The replay will be
available for one week following the  presentation.  The slides presented at the
presentation  are  available at  http://www.kcsi.com  by  selecting  the analyst
presentation  option  under the "For  Investor - KSU  Stock"  section of our web
site.  The press  release,  included as Exhibit 99.1 hereto,  and certain  other
information  distributed at the  presentation,  included as exhibit 99.2 hereto,
are being  furnished under Item 9 of this Current Report on Form 8-K pursuant to
Regulation  FD. The  information  in this report  (including  the  exhibits)  is
furnished pursuant to Item 9 and shall not be deemed to be filed.

Item 7.     Financial Statements and Exhibits

(c)         Exhibits

            Exhibit No.                         Document
            (99)                                Additional Exhibits

            99.1                                Press Release issued by
                                                Kansas City Southern
                                                Industries, Inc. dated
                                                October 25, 2000 entitled,
                                                "Kansas City Southern
                                                Industries Reports Improved
                                                Third Quarter and Year to
                                                Date Income from Continuing
                                                Operations", is attached
                                                hereto as Exhibit 99.1

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

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company
has duly  caused  this  Report  to be signed  on its  behalf by the  undersigned
hereunto duly authorized.

                                           Kansas City Southern Industries, Inc.

Date: October 31, 2000                     By: /s/  Louis G. Van Horn
                                                    Louis G. Van Horn
                                            Vice President and Controller
                                            (Principal Accounting Officer)
EXHIBIT 99.1
Release No:2000-08            Date:          October 25, 2000

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

NYSE Symbol: KSU

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

Spin-off of Stilwell Financial Inc.
On July 12, 2000,  Kansas City Southern  Industries,  Inc. ("KCSI" or "Company")
completed its spin-off of Stilwell Financial Inc. ("Stilwell") through a special
dividend of Stilwell  common stock  distributed to KCSI common  stockholders  of
record on June 28, 2000  ("Spin-off").  The Spin-off occurred after the close of
business  of the New York  Stock  Exchange  on July  12,  2000,  and  each  KCSI
stockholder  received  two shares of the common  stock of Stilwell for every one
share of KCSI  common  stock  owned on the record  date.  The  Internal  Revenue
Service has ruled that the Spin-off  will not be taxable for Federal  income tax
purposes to KCSI or KCSI  stockholders.  Also on July 12, 2000, KCSI completed a
reverse  stock split whereby every two shares of KCSI common stock was converted
into one share of KCSI common stock.  KCSI common  stockholders  had  previously
approved this reverse stock split.  The results of operations  discussed  herein
provide information only related to the continuing operations of KCSI, exclusive
of the discontinued operations of Stilwell.

Earnings Analysis and Commentary
KCSI  reported  third  quarter 2000 income from  continuing  operations  of $5.2
million  (9 cents  per diluted  share)  compared to $4.6  million (8 cents  per
diluted share) in the third quarter of 1999. This $0.6 million (13%) improvement
resulted  primarily  from an increase in U.S.  operating  income of $4.1 million
(28%) and a decrease  in the  income tax  provision  of $1.2  million  partially
offset  by  a  $1.2  million  decrease  in  equity  earnings  related  to  Grupo
Transportacion  Ferroviaria Mexicana, S.A. de C.V. ("Grupo TFM") and an increase
in interest  expense of $3.6  million.  KCSI's  consolidated  third quarter 2000
revenue decline of $5.0 million was more than offset by a $9.1 million reduction
in operating expenses, resulting in improved operating income.

For the nine months ended September 30, 2000, income from continuing  operations
increased  $7.0 million (40%) to $24.4 million, or 42 cents  per diluted share,
from $17.4  million, or 30 cents per diluted  share, for the nine months ended
September 30, 1999. A $14.0 million  increase in equity  earnings from Grupo TFM
and a $6.1  million  decrease  in the income tax  provision  for the nine months
ended  September 30, 2000 were partially  offset by a decline in U.S.  operating
income of $3.6  million and an increase  in interest  expense of $10.9  million.
Consolidated  revenues  declined  2.7%  while  consolidated  operating  expenses
declined  2.2% for the nine months ended  September  30, 2000  compared with the
same 1999 nine-month period.

During the third quarter of 2000,  the Company  refinanced  $200 million of bank
debt due  January  11,  2001  with a $200  million  offering  of  8-year  senior
unsecured   notes.   In  connection   with  this   refinancing,   KCSI  recorded
extraordinary debt retirement costs of approximately $1.1 million (net of income
taxes).  Additionally,  during the third quarter of 2000,  Grupo TFM  refinanced
$300 million of bank debt with a U.S.  Commercial  Paper program.  KCSI recorded
its proportionate  share of extraordinary  debt retirement costs of $1.7 million
(net of income  taxes)  related to this  refinancing  by Grupo TFM.  Total third
quarter  2000  extraordinary charges of $2.8  million,  or 5 cents per diluted
share,  reduced  income from  continuing  operations  from $5.2  million to $2.4
million, or 4 cents per diluted share.

In anticipation of the Spin-off,  the Company  re-capitalized its debt structure
during January 2000 whereby KCSI retired approximately $398 million in long-term
indebtedness  prior to their scheduled  maturities.  Accordingly,  KCSI recorded
extraordinary debt retirement costs of approximately $5.9 million (net of income
taxes),   or  10 cents  per  diluted  share, in  first  quarter  2000.   Total
extraordinary  items for the nine months ended  September  30, 2000 totaled $8.7
million  (net of income  taxes) or  15 cents  per  diluted  share.  Income from
continuing  operations adjusted for these extraordinary items was $15.7 million,
or 27 cents per diluted share for the nine months ended September 30, 2000.
Diluted Earnings per Share and Common Shares Comparison

                                      Third Quarter             Year to Date
2000       1999          2000      1999
Income from continuing operations:
  U.S. operations                     $ 0.13     $ 0.07        $  0.36   $ 0.37
  Grupo TFM and associated interest    (0.04)      0.01           0.06    (0.07)
                                     --------   -------       --------  -------
  Income from continuing operations     0.09       0.08           0.42     0.30
Extraordinary debt retirement costs    (0.05)         -          (0.15)       -
                                     --------   -------       --------  -------
  Total diluted earnings per
share from continuing operations,
adjusted for the extraordinary items  $ 0.04     $ 0.08        $  0.27    $0.30
                                     --------   -------       --------  -------

Weighted Average Diluted
   Common Shares Outstanding           59,100   57,047         58,185    56,989
(thousands)  (1)
(1) KCSI stockholders  previously  approved a reverse split of KCSI Common stock
that became  effective upon completion of the Spin-off.  As discussed above, the
Spin-off  occurred  on July 12, 2000 and,  accordingly,  at the close of the New
York Stock  Exchange on July 12, 2000,  each two shares of KCSI Common stock was
converted to one share of KCSI Common  stock.  All periods  presented  have been
restated to reflect this reverse split.

Third Quarter
Following  the Spin-off of Stilwell  from the Company on July 12, 2000,  KCSI is
comprised of, among others,  The Kansas City Southern Railway Company  ("KCSR"),
Gateway Western Railway Company  ("Gateway  Western") and equity  investments in
Grupo TFM and Mexrail,  Inc. KCSI reported income from continuing  operations of
$5.2  million for the three  months ended  September  30, 2000  compared to $4.6
million in the same 1999 period.

KCSI's  consolidated  third quarter 2000 revenues  totaled $144.1 million versus
$149.1  million in third  quarter  1999.  This $5.0  million  decrease  resulted
primarily from lower combined  KCSR/Gateway  Western  revenues of  approximately
$4.4 million.  Growth in paper and forest  product and automotive  revenues,  as
well as improved  revenues per carload in most lines of business  were offset by
declines  in unit coal and  chemical  and  petroleum  revenues.  Lower unit coal
revenues  resulted from a reduction in tons  delivered and changes in the length
of haul. Miscellaneous chemical revenues were lower due to demand driven traffic
declines while soda ash revenues  declined  because of a new export  terminal on
the origin  railroad,  which led to substantial  volume  reductions.  Automotive
revenues improved during the third quarter of 2000 as a result of traffic growth
arising  from  continued  marketing  efforts and the  initiation  of  automotive
transload  services  at the Kansas  City  International  Freight  Gateway at the
former Richards-Gebaur Airbase.

KCSI's  consolidated  operating costs and expenses decreased $9.1 million (6.8%)
in the third  quarter of 2000 compared to the third quarter of 1999. In spite of
diesel fuel costs,  which rose  approximately  42% in the third  quarter of 2000
compared to the same period in 1999, third quarter 2000 operating costs declined
primarily due to operational  efficiencies  at KCSR and Gateway  Western.  These
operational  improvements led to a quarter over quarter decrease in salaries and
wages, car hire, purchased services,  and casualties and insurance expenses.  In
addition to higher fuel costs,  these declines were  partially  offset by higher
lease expense  associated with 50 new locomotives leased in fourth quarter 1999.
The combined  KCSR/Gateway  Western  operating  ratio for third quarter 2000 was
87.0% compared to 87.8% in the same 1999 period.

Excluding the impact of the extraordinary item discussed above,  equity earnings
related to the Company's  investment in Grupo TFM declined $1.2 million  quarter
to quarter.  Grupo TFM  revenues  improved  25% to $165.2  million for the third
quarter of 2000 from $132.1 million for the third quarter of 1999.  These higher
revenues  were  partially  offset by an  approximate  21%  increase in operating
expenses  arising  primarily  from  higher  fuel costs (87%) and higher car hire
costs (123%) due to increased  traffic volumes and congestion  related issues at
the U.S. - Mexican border.  Despite the impact of these higher  operating costs,
operating  income  rose  approximately  39% quarter to quarter  resulting  in an
operating  ratio of 76.9% in the third quarter of 2000 versus 79.1% in the third
quarter of 1999.  However,  Grupo TFM's third quarter 2000 results were impacted
by an  increase in other  expenses  related  primarily  to losses on the sale of
certain  property  and  inventory.  Additionally,  third  quarter  1999  results
included a $10.7 million deferred tax benefit  (calculated under U.S.  generally
accepted  accounting  principles - "U.S.  GAAP") caused by a weakening peso. For
the third  quarter of 2000,  the deferred tax benefit  under U.S.  GAAP was $0.1
million  (excluding the impact of the  extraordinary  item). The Company reports
its  equity  in Grupo  TFM  under  U.S.  GAAP  while  Grupo  TFM  reports  under
International Accounting Standards.

KCSI interest  expense in the third quarter of 2000 increased 24% from the prior
year quarter due to higher  interest  rates and  amortization  of debt  issuance
costs associated with the January 2000 debt re-capitalization.

Year to Date

The Company's  income from  continuing  operations for  the  nine
months ended September 30, 2000 totaled $24.4  million  versus $17.4 million in
the same  1999  period  (a 40% improvement).   KCSI's   consolidated   revenues
declined  approximately  2.7%, while operating expenses declined 2.2% period to
period.

Year to date  combined  KCSR/Gateway  Western  revenues  decreased  $7.2 million
primarily as a result of declines in coal,  export grain and  chemical/petroleum
revenues.  Similar to third quarter,  these  declines were  partially  offset by
increases  in  paper/forest   and   intermodal/automotive   revenues.   Combined
KCSR/Gateway Western operating costs decreased approximately $1.6 million period
to period primarily as a result of improvements in salaries/wages,  car hire and
materials/supplies  expenses  partially  offset by higher  fuel  costs and lease
expense (as discussed above). The combined  KCSR/Gateway Western operating ratio
was 86.0% for the nine months ended September 30, 2000 compared to 84.9% for the
nine months ended September 30, 1999.

Excluding the impact of the Grupo TFM extraordinary item discussed above, equity
earnings  from  Grupo TFM  improved  $14.0  million  for the nine  months  ended
September 30, 2000 compared to the nine months ended  September 30, 1999.  Grupo
TFM's revenues increased 24% period to period,  while operating income increased
nearly 45%  resulting in an  operating  ratio of 72.4% for the nine months ended
September 30, 2000 compared to 76.4% for the same prior period. Under U.S. GAAP,
the deferred tax benefit for Grupo TFM was $18.9 million  (excluding  the impact
of the extraordinary item) for the nine months ended September 30, 2000 compared
to a deferred tax benefit of $5.0 million for the same period in 1999.

Business Outlook

Michael R. Haverty,  KCSI President and Chief Executive  Officer,  said, "We are
pleased with the ongoing  results of our investment in Grupo TFM as well as with
KCSR's  success  in  maintaining  an  effective  operating  cost  structure.  We
continue,  however, to feel the impact of competitive revenue pressures and high
interest costs.

Grupo TFM's  incredible  growth  story  continues  as year to date  revenues and
operating  profit have increased  nearly 24% and 45%,  respectively.  Our equity
earnings  from  Grupo TFM for the nine  months  ended  September  30,  2000 have
increased  $14 million,  or almost 300%,  compared with the same 1999 period and
have been the  primary  contributor  to our income  from  continuing  operations
during 2000.  KCSI management  believes that Grupo TFM has merely  scratched the
surface of its  potential  as a leader in NAFTA  traffic  in the North  American
marketplace.

Over the course of 2000, we have significantly  improved the efficiency and cost
structure of our U.S. railroad operations.  Although there is not much we can do
to impact the price of diesel fuel, we believe we have done an  outstanding  job
of  improving  our fuel  efficiency  through the lease of 50 new  fuel-efficient
locomotives  in late 1999 as well as an  aggressive  fuel  conservation  program
initiated in mid-1999.  Additionally, we continue to see decreases in the number
of foreign  owned cars  on-line  resulting  in lower car hire  payments to other
railroads  and have reduced our salaries and wages  through the reduction of the
amount of overtime hours worked and the number of relief crews used as well as a
reduction in total employee count.

Domestically,  however, we continue to be affected by highly competitive revenue
pressures and higher interest  costs. To combat these issues,  our primary focus
is to  increase  revenues  and reduce  debt.  Through our  strategic  alliances,
marketing  agreements,  the new  International  Freight  Gateway  at the  former
Richards-Gebaur  Airbase, and access to six additional chemical customers in the
Geismar,  Louisiana  industrial  area,  we have the  opportunity  to improve our
revenue base.  We have also  developed a plan to reduce debt through the sale of
non-core   assets,   reduced  capital  spending  and  improved  cash  flow  from
operations.

KCSI  management is committed to maximizing the potential of the NAFTA franchise
and is continuously seeking opportunities to enhance shareholder value."

This press  release  includes  statements  concerning  potential  future  events
involving  the  Company,  which  could  materially  differ  from the events that
actually occur. The differences could be caused by a number of factors including
those  factors  identified  in KCSI's  December 31, 1999 Form 10-K,  the Current
Report on Form  8-K/A  dated June 3, 1997,  each filed by the  Company  with the
Securities and Exchange  Commission  (Commission  file no. 1-4717).  The Company
will not update any forward-looking  statements in this press release to reflect
future events or developments.

                        (Financial Information Attached)
KANSAS CITY SOUTHERN INDUSTRIES, INC. and SUBSIDIARY
                                           COMPANIES
                              (excludes Stilwell Financial Inc.)
                          CONSOLIDATED CONDENSED STATEMENTS OF INCOME
                         (dollars in millions, except per share data)
                                          (Unaudited)
Three Months Ended    Nine Months Ended
                                                September 30,        September 30,
                                              -----------------     ----------------
2000      1999       2000     1999
                                               -------   -------    -------  -------
          Revenues                            $ 144.1    $149.1     $437.4   $449.7
          Costs and expenses                    111.6     120.2      339.9    348.0
          Depreciation and amortization          13.8      14.3       42.4     43.0
                                               -------   -------    -------  -------
          Operating income                       18.7      14.6       55.1     58.7

          Equity in net earnings of unconsolidated affiliates:
              Grupo Transportacion Ferroviaria
               Mexicana, S.A. de C.V.             2.6       3.8       18.8      4.8
              Other                               1.5       1.3        3.3      3.5
          Interest expense                      (18.3)    (14.7)     (54.2)   (43.3)
          Other, net                              1.2       1.3        4.8      3.2
                                               -------   -------    -------  -------

          Pretax income                           5.7       6.3       27.8     26.9
          Income tax provision                    0.5       1.7        3.4      9.5
                                               -------   -------    -------  -------
          Income from continuing operations       5.2       4.6       24.4     17.4
            Extraordinary items,  net of tax:
             Debt retirement costs - KCSR/KCSI   (1.1)        -       (7.0)       -
             Debt retirement costs - TFM         (1.7)        -       (1.7)       -
                                               -------   -------    -------  -------

          Income from continuing operations,
           net of extraordinary items            $2.4      $4.6      $15.7    $17.4
                                               -------   -------    -------  -------

          Per Share  Data:
          --------------------------------------------------------------------------
          Basic Earnings per Common Share
           from continuing operations           $0.09     $0.08      $0.43    $0.31
          Basic Earnings per Common Share -
           extraordinary items                  (0.05)        -      (0.15)       -
                                               -------   -------    -------  -------
          Basic Earnings per Common Share,
           net of the extraordinary items       $0.04     $0.08      $0.28    $0.31
                                               -------   -------    -------  -------
          Weighted Average Common shares
           outstanding (in thousands)          57,478    55,242     56,353   55,102
                                               -------   -------    -------  -------

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

          Diluted Earnings per Common Share
           from continuing operations           $0.09     $0.08      $0.42    $0.30
          Diluted Earnings per Common Share -
           extraordinary items                  (0.05)        -      (0.15)       -
                                               -------   -------    -------  -------
          Diluted Earnings per Common Share,
           net of extraordinary items           $0.04     $0.08      $0.27    $0.30
                                               -------   -------    -------  -------

          Diluted Common shares outstanding
           (in thousands)                      59,100    57,047     58,185   56,989
                                               -------   -------    -------  -------

          --------------------------------------------------------------------------
EXHIBIT 99.2

Combined KCSR and Gateway Western
Operating Statements
Dollars in Millions
Third           Third          Nine Months     Nine Months
                              Quarter         Quarter
                                2000            1999              2000            1999
                            -------------   -------------     -------------   -------------
Revenues
    Freight Revenue                $87.4           $88.3            $265.3          $268.4
    Intermodal and
      Automotive Revenue            15.9            15.7              47.0            43.0
    Unit Coal Revenue               26.7            30.0              81.4            85.7
    Other Revenue                   12.5            12.9              37.1            41.0
                            -------------   -------------     -------------   -------------
      Total Revenues               142.5           146.9             430.8           438.1
                            -------------   -------------     -------------   -------------

Operating Expenses
    Salaries & Wages                35.0            36.8             103.6           107.6
    Fringe Benefits                 13.8            13.7              41.3            39.9
    Fuel                            12.2             8.6              35.3            24.4
    Material and Supplies            7.5             8.7              23.6            26.5
    Car Hire                         4.1             5.8              11.1            16.4
    Purchased Services              11.1            12.7              35.9            35.8
    Casualties & Insurance           7.6             8.9              20.3            21.3
    Other                            2.1             4.1               7.0            11.9
                            -------------   -------------     -------------   -------------
    Net Operating Expenses          93.4            99.3             278.1           283.8
                            -------------   -------------     -------------   -------------

Fixed Expenses
    Leases, Net                     13.9            12.9              42.5            38.3
    Depreciation                    13.0            13.1              39.4            39.5
    Taxes (Other Than Income)        3.7             3.8              11.2            11.2
                             -------------   -------------     -------------   -------------
    Total Fixed Expenses            30.6            29.8              93.1            89.0
                            -------------   -------------     -------------   -------------
    Total Expenses                 124.0           129.1             371.2           372.8
                            -------------   -------------     -------------   -------------
Operating Income                    18.5            17.8              59.6            65.3
Combined Kansas City Southern Railway/Gateway Western
Carloadings By Commodity - Year to Date September 30, 2000
Dollars in Thousands

     Carloadings                                                  Revenue
    Year to Date           %                                    Year to Date         %
----------------------                                      --------------------
2000        1999      Change                               2000       1999      Change
-----------  ---------   --------                           ---------  ---------   -------

                                      Coal
   141,498    148,041    (4.4)%       Unit Coal               81,406     85,660    (5.0)%
     2,302      2,822   (18.4)%       Other Coal                 865        853     1.4%
-----------  ---------                                      ---------  ---------
   143,800    150,863    (4.7)%                               82,271     86,513    (4.9)%
Chemical & Petroleum Products
19,810     19,739     0.4%        Plastics                18,180     18,333    (0.8)%
    51,950     54,540    (4.7)%       Misc. Chemicals         50,024     50,572    (1.1)%
     1,377      4,068   (66.2)%       Soda Ash                 1,535      4,771   (67.8)%
    25,684     26,963    (4.7)%       Petro Products          18,863     19,083    (1.2)%
    18,696     20,957   (10.8)%       Petro Coke               7,734      7,990    (3.2)%
-----------  ---------                                      ---------  ---------
   117,517    126,267    (6.9)%               Total           96,336    100,749    (4.4)%
-----------  ---------                                      ---------  ---------
Agriculture and
                                    Minerals
38,208     37,579     1.7%        Domestic Grain          28,067     27,215      3.1%
     8,386     11,229   (25.3)%       Export Grain             5,931      9,050    (34.5)%
    22,264     24,667    (9.7)%       Food Products           17,786     17,580      1.2%
    20,018     19,258     3.9%        Ores and Minerals       10,107      9,999      1.1%
    12,925     13,635    (5.2)%       Stone, Clay & Glass      9,529      9,589     (0.6)%
    19,519     17,904     9.0%        Metal/Scrap             14,913     11,923     25.1%
     5,960      9,356   (36.3)%       Military/Other Carloads  6,196      8,116    (23.7)%
-----------  ---------                                      ---------  ---------
   127,280    133,628    (4.8)%               Total           92,529     93,472     (1.0)%
-----------  ---------                                      ---------  ---------
Paper & Forest Products
68,974     69,459    (0.7)%       Pulp/Paper              48,104     46,358      3.8%
     5,243      5,660    (7.4)%       Scrap Paper              2,857      2,859     (0.1)%
    26,038     29,950   (13.1)%       Pulpwood/Logchips       10,336     11,360     (9.0)%
    21,688     21,004     3.3%        Lumber/Plywood          19,137     17,856      7.2%
-----------  ---------                                      ---------  ---------
   121,943    126,073    (3.3)%               Total           80,434     78,433      2.6%
-----------  ---------                                      ---------  ---------
Intermodal & Automotive
14,987      6,141   144.0%        Automotive               9,392      4,632    102.8%
   179,678    165,749     8.4%        Intermodal              37,617     38,384     (2.0)%
-----------  ---------                                      ---------  ---------
   194,665    171,890    13.2%                Total           47,009     43,016      9.3%
-----------  ---------                                      ---------  ---------

   705,205    708,721    (0.5)%    TOTAL FOR BUSINESS UNITS  398,579    402,183     (0.9)%
    26,288     33,157    20.7)%    Haulage                     8,290     12,933    (35.9)%
    (5,840)    (5,781)    1.0%     Adjustments                (4,902)    (5,137)    (4.6)%
-----------  ---------                                      ---------  ---------
   725,653    736,097    (1.4)%            TOTAL             401,967    409,979     (2.0)%
===========  =========                                      =========  =========
Combined Kansas City Southern Railway/Gateway Western
Carloadings By Commodity - Third Quarter 2000
Dollars in Thousands

      Carloadings                                                 Revenue
     Third Quarter       %                                     Third Quarter   %
----------------------                                      --------------------
2000        1999      Change                               2000       1999      Change
-----------  ---------   --------                           ---------  ---------   -------

                                      Coal
    48,522     51,656    (6.1)%       Unit Coal               26,689     29,994    (11.0)%
       734        750    (2.1)%       Other Coal                 335        231     45.0%
-----------  ---------                                      ---------  ---------
    49,256     52,406    (6.0)%                               27,024     30,225    (10.6)%
Chemical & Petroleum Products
6,822      6,355     7.3%        Plastics                 6,413      5,759     11.4%
    16,924     18,606    (9.0)%       Misc. Chemicals         16,155     17,043     (5.2)%
       444      1,321   (66.4)%       Soda Ash                   473      1,610    (70.6)%
     8,454      8,858    (4.6)%       Petro Products           6,282      6,232      0.8%
     6,697      6,529     2.6%        Petro Coke               2,497      2,737     (8.8)%
-----------  ---------                                      ---------  ---------
    39,341     41,669    (5.6)%               Total           31,820     33,381     (4.7)%
-----------  ---------                                      ---------  ---------
Agriculture and
                                    Minerals
11,417     10,584     7.9%        Domestic Grain           8,179      6,745     21.3%
     3,419      4,276   (20.0)%       Export Grain             2,638      3,481    (24.2)%
     7,719      7,697     0.3%        Food Products            6,060      5,447     11.3%
     6,841      6,617     3.4%        Ores and Minerals        3,344      3,380     (1.1)%
     4,069      4,608   (11.7)%       Stone, Clay & Glass      2,960      3,222     (8.1)%
     5,612      6,955   (19.3)%       Metal/Scrap              4,292      4,694     (8.6)%
     2,050      3,351   (38.8)%       Military/Other carloads  2,554      3,151    (18.9)%
-----------  ---------                                      ---------  ---------
    41,127     44,088    (6.7)%               Total           30,027     30,120     (0.3)%
-----------  ---------                                      ---------  ---------
Paper & Forest Products
22,855     23,198    (1.5)%       Pulp/Paper              16,581     15,558      6.6%
     1,839      1,901    (3.3)%       Scrap Paper              1,028        973      5.7%
     7,984     10,437   (23.5)%       Pulpwood/Logs/Chips      3,102      3,955    (21.6)%
     6,996      6,986     0.1%        Lumber/Plywood           6,158      6,000      2.6%
-----------  ---------                                      ---------  ---------
    39,674     42,522    (6.7)%               Total           26,869     26,486      1.4%
-----------  ---------                                      ---------  ---------
Intermodal & Automotive
4,969      2,726    82.3%        Automotive               3,297      1,979     66.6%
    68,414     61,598    11.1%        Intermodal              12,612     13,685     (7.8)%
-----------  ---------                                      ---------  ---------
    73,383     64,324    14.1%                Total           15,909     15,664      1.6%
-----------  ---------                                      ---------  ---------

   242,781    245,009    (0.9)%    TOTAL FOR BUSINESS UNITS  131,649    135,876     (3.1)%

     7,966      8,660    (8.0)%    Haulage                     2,577      3,966    (35.0)%
    (2,240)    (2,114)    6.0%     Adjustments                (1,714)    (1,909)   (10.2)%
-----------  ---------                                      ---------  ---------
   248,507    251,555    (1.2)%            TOTAL             132,512    137,933     (3.9)%
===========  =========                                      =========  =========
Kansas City Southern Industries, Inc.
                                                            -------------------
Consolidated Balance Sheets                                   PRELIMINARY
                                                            -------------------
Unaudited
(Dollars in Millions)
September 30, 2000    December 31, 1999
Assets
  Cash                                      $        30.2           $       11.9
  Accounts receivable                               119.8                  132.2
  Inventories                                        34.2                   40.6
  Other current assets                               20.8                   23.8
                                       -------------------    -------------------
        Total current assets                        205.0                  208.5

  Investments held for operating purposes           361.1                  337.1
  Properties, net of depreciation                 1,311.3                1,277.4
  Other assets                                       42.6                   34.4
                                       -------------------    -------------------
        Total assets                        $     1,920.0           $    1,857.4
                                       ===================    ===================

Liabilities and Stockholders' Equity
  Current portion of long-term debt         $        13.7           $       10.9
  Accounts payable                                   36.3                   74.8
  Accrued liabilit                                  151.1                  168.5
                                       -------------------    -------------------
     Total current liabilities                      201.1                  254.2

  Long-term debt                                    671.7                  750.0
  Deferred income taxes                             321.8                  297.4
  Other                                              83.3                   87.3
  Stockholders' equity                              642.1                  468.5
                                       -------------------    -------------------
    Total liabilities and                   $     1,920.0           $    1,857.4
    stockholders' equity               ===================    ===================