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 31, 2002


                      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 7.     Financial Statements and Exhibits

(c)         Exhibits

            Exhibit No.                         Document

            (99)                                Additional Exhibits

            99.1                              Press Release issued by Kansas
                                              City Southern Industries, Inc.
                                              dated January 31, 2002 entitled,
                                              "Kansas City Southern Industries
                                              Reports Improved Fourth Quarter
                                              and Year to Date Earnings", is
                                              attached hereto as Exhibit 99.1


            99.2                              The following schedules are
                                              attached hereto as Exhibit 99.2 -
                                              Kansas City Southern Railway
                                              Operating Statements, Kansas City
                                              Southern Railway Carloadings by
                                              Commodity, Kansas City Southern
                                              Industries, Inc. Consolidated
                                              Balance Sheets and Kansas City
                                              Southern Industries, Inc.
                                              Statement of Cash Flows



Item 9.     Regulation FD Disclosure

Kansas City Southern Industries,  Inc. ("KCSI" 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 31, 2001,  announcing  KCSI's fourth quarter and year to
date 2001 operating  results.  Included in Exhibit 99.2 are schedules  regarding
certain  financial  information  discussed at the Company's  fourth quarter 2001
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.


<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: February 7, 2002                    By: /s/  Louis G. Van Horn
                                             ----------------------------
                                                   Louis G. Van Horn
                                             Vice President and Comptroller
                                             (Principal Accounting Officer)


<PAGE>


EXHIBIT 99.1

                                                         Date  January 31, 2002

Kansas City Southern               Media Contact: William Galligan 816-983-1551
Industries, Inc.                   william.h.galligan@kcsr.com
114 West 11th Street
Kansas City, MO 64105              NYSE Symbol: KSU

                   Kansas City Southern Industries Reports Improved
                       Fourth Quarter and Year to Date Earnings

EARNINGS ANALYSIS AND COMMENTARY

KCSI reported  fourth  quarter 2001 income from  continuing  operations of $11.1
million  (18(cent)  per diluted  share)  compared to $3.6  million  (6(cent) per
diluted share) in the fourth  quarter of 2000.  This $7.5 million (208%) quarter
to quarter increase resulted primarily from an improvement in domestic operating
income of $13.5 million,  a $2.2 million increase in equity earnings (based upon
preliminary information) from Grupo Transportacion Ferroviaria Mexicana, S.A. de
C.V.  ("Grupo  TFM") and a decline in interest  expense of $1.7  million.  These
improvements  were partially offset by a $9.8 million increase in the income tax
provision.  KCSI's  consolidated  fourth  quarter 2001 revenue  increased  $10.7
million and  operating  expenses  declined  $2.8 million  compared to the fourth
quarter of 2000, resulting in the $13.5 million improvement in operating income.

For the year ended  December 31, 2001,  income from  continuing  operations  was
$31.1 million  (51(cent) per diluted share) compared to $25.4 million  (43(cent)
per diluted  share) for the year ended  December  31,  2000.  This $5.7  million
period to period increase was primarily due to a $6.9 million increase in equity
earnings  from  Grupo  TFM and a $13.0  million  decrease  in  interest  expense
partially offset by a $2.4 million decrease in domestic operating income, a $3.6
million decrease in equity earnings from other  unconsolidated  affiliates and a
$6.4 million increase in the income tax provision.  Equity earnings for the year
ended December 31, 2001 reflect 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.

As previously announced,  NAFTA Rail, a wholly-owned Mexican subsidiary of KCSI,
filed an action in a Mexican court challenging,  among other items, a resolution
purportedly  approved by the shareholders of Grupo TFM ordering the payment of a
dividend to the shareholders of Grupo TFM. The CEO's of both KCSI and Grupo TMM,
S.A.  de C.V.  ("Grupo  TMM") have met and are  currently  working to settle the
issues  surrounding the litigation and KCSI hopes to resolve these matters prior
to the filing of the Company's  Form 10-K for the year ended  December 31, 2001.
NAFTA  Rail has not  received  this  dividend.  If,  however,  the  dividend  is
determined  to be a 2001  transaction  at the time of KCSI's  filing of its Form
10-K, or if these  matters are resolved  unfavorably  to KCSI,  the Company will
record a $6.7 million charge (11(cent) per diluted share) for the fourth quarter
and year ended  December 31, 2001.  This charge would  represent  the  Company's
proportionate decline in its investment in Grupo TFM arising from the accounting
for a tax recorded by Grupo TFM as a result of the dividend.  This charge is not
reflected in the attached financial information.


<PAGE>



DILUTED EARNINGS PER SHARE AND COMMON SHARES COMPARISONS (1)
<TABLE>
<S>                                        <C>         <C>          <C>       <C>

                                            Fourth Quarter              Year to Date
                                         ---------------------      ---------------------
                                            2001        2000           2001        2000
                                            ----        ----           ----        ----
Income from continuing operations:

  U.S. operations                           $ 0.16      $ 0.10         $ 0.33      $ 0.41
  Grupo TFM and PCRC (including
   associated interest)                       0.02       (0.04)          0.18        0.02
                                         ---------   ---------      ---------   ---------
  Income from continuing operations           0.18        0.06           0.51        0.43
Extraordinary debt retirement costs,
   net of income tax                           -            -              -        (0.15)
Cumulative effect of accounting change,
   net of income tax(2)                        -            -           (0.01)         -
                                         ---------   ---------      ---------   ---------
    Total diluted earnings per share
     from continuing operations,
     adjusted for the extraordinary
     items and cumulative effect of
     accounting change                      $ 0.18      $ 0.06         $ 0.50      $ 0.28
                                         ---------   ---------      ---------   ---------

Common Shares Outstanding
(thousands):

   Weighted Average Diluted                61,099       59,839         60,984      58,390
   Actual                                  59,243       58,147         59,243      58,147
</TABLE>


(1)Earnings per share and common  share  information  for each period  presented
   reflect a  one-for-two  reverse stock split that occurred on July 12, 2000 in
   conjunction  with the  spin-off of Stilwell  Financial  Inc.,  the  Company's
   formerly owned financial services segment.

(2)Reflects the adoption of Statement of Financial Accounting Standard No. 133,
   Accounting for Derivative Instruments and Hedging Activities.


FOURTH QUARTER

KCSI is comprised of, among others,  The Kansas City  Southern  Railway  Company
("KCSR")  and  equity  investments  in Grupo  TFM,  Mexrail,  Inc.  ("Mexrail"),
Southern  Capital  Corporation  ("Southern  Capital")  and Panama Canal  Railway
Company  ("PCRC").  Effective  October 1, 2001,  Gateway Western Railway Company
("Gateway  Western") was merged into KCSR.  Discussions  of KCSR herein  include
consideration of the operations and operating results of Gateway Western.

KCSI's consolidated fourth quarter 2001 revenues totaled $145.5 million compared
to $134.8 million in the fourth quarter of 2000. This 8% increase  resulted from
higher KCSR revenues, which increased $11.1 million to $143.4 million, partially
offset by a slight  decrease in revenues from certain other  subsidiaries.  KCSR
revenue growth was driven primarily by strength in coal revenues, which improved
$9.1  million  (40%)  quarter to  quarter.  Net tons of coal  shipped  increased
approximately  35% quarter to quarter due to demand driven  increases at certain
utility plants  compared to the prior year fourth quarter  resulting from higher
than usual  deliveries to replenish  stockpiles  and to satisfy  weather-related
demands. Additionally, a coal-burning utility plant that had been out of service
since January 1999 began taking shipments in the second quarter of 2001. Quarter
to quarter  revenue  increases also occurred for paper  products,  export grain,
certain   chemical  and  plastics   products  and  military   shipments.   These
improvements  were partially  offset by quarter to quarter revenue  declines for
domestic grain, food products,  ore and mineral products,  steel and scrap metal
shipments  and  intermodal  products,  primarily  reflecting  the existing  slow
economic  conditions.  Quarter to quarter revenues increased 3% for all non-coal
commodity groups on a combined basis.

KCSI's  consolidated  costs and  expenses  declined  $2.8  million in the fourth
quarter  of 2001 to $125.1  million  compared  to $127.9  million  in the fourth
quarter of 2000.  This  resulted  from a $1.2 million  decrease in KCSR expenses
coupled with a $1.6 million decrease in expenses at certain other  subsidiaries.
At KCSR, quarter to quarter declines in salaries and wages ($3.0 million),  fuel
($4.2  million),  materials and supplies ($1.5  million) and purchased  services
($1.3  million)  were  partially  offset by increases in fringe  benefits  ($2.3
million) and casualties and insurance ($3.4  million).  Lower costs for salaries
and wages reflect the employee headcount  reductions  effected in March 2001 and
operating  efficiency  at KCSR,  while lower fuel costs reflect the reduction in
the market  price of fuel.  Fringe  benefits  expense  increased  as a result of
higher health care costs and casualties and insurance  expense increased quarter
to quarter  primarily as a result of an increase in the personal injury reserves
arising from the Company's  annual actuarial study. The KCSR operating ratio for
the fourth  quarter of 2001 improved to 84.7% compared to 92.7% in the same 2000
period.
<PAGE>

Equity earnings related to the Company's  investment in Grupo TFM increased $2.2
million to $5.0  million in the fourth  quarter of 2001 from $2.8 million in the
fourth  quarter of 2000.  Grupo TFM revenues  were $171.8  million in the fourth
quarter of 2001,  a 4% increase  compared to the fourth  quarter of 2000.  Total
costs and expenses at Grupo TFM increased 2% quarter to quarter, while operating
profit increased 9% (computed under accounting  principles generally accepted in
the United  States of America - "U.S.  GAAP").  Under  International  Accounting
Standards,  TFM's  operating  ratio  was 76.9% for the  fourth  quarter  of 2001
compared  to 78.6% for the fourth  quarter of 2000.  Additionally,  Grupo  TFM's
fourth  quarter  2001  results  include a deferred  tax benefit of $1.7  million
(calculated  under U.S. GAAP) compared to a deferred tax expense of $0.3 million
for the  fourth  quarter  of 2000.  The  favorable  change in the  deferred  tax
calculation  of Grupo TFM is mostly  attributable  to  fluctuations  in the peso
exchange rate and inflation in Mexico.  The Company  reports its equity in Grupo
TFM under U.S.  GAAP while  Grupo TFM  reports  under  International  Accounting
Standards.

Equity earnings from the Company's  investment in Mexrail  declined $0.1 million
quarter to quarter,  while equity  earnings  from Southern  Capital  improved by
approximately $0.5 million. Additionally, the reconstruction of the rail line in
Panama was  completed in July 2001 and the  operations  of PCRC have  commenced.
During the  fourth  quarter  of 2001,  the  Company  recorded  equity  losses of
approximately  $0.6 million from its investment in PCRC relating mostly to costs
associated with the start-up of the business.

KCSI's  consolidated  interest  expense for the fourth quarter of 2001 decreased
$1.7 million  (15%) from the prior year  quarter  primarily as a result of lower
interest rates on our variable rate debt.

YEAR TO DATE

KCSI's consolidated  revenues totaled $577.3 million for the year ended December
31, 2001 compared to $572.2 million for the year ended  December 31, 2000.  This
$5.1 million increase  resulted from higher KCSR revenues of approximately  $3.3
million partially coupled with higher revenues from certain other  subsidiaries.
Revenue  growth in 2001  occurred  primarily  in coal (13%),  automotive  (72%),
plastics  (10%),  military/other  (49%),  export grain (19%) and certain  forest
products.  These revenue  improvements were partially offset by overall declines
in chemical and petroleum products (1%),  agriculture and mineral products (6%),
paper and forest  products (2%) and  intermodal  revenues  (10%)  primarily as a
result of lower production due to the weakness in the U.S. economy.  Agriculture
and mineral product revenues were affected by lower domestic grain shipments due
a general  decline in poultry  production in the United States.  This decline in
poultry  production in the United States resulted in decreased  demand for grain
deliveries to our customers during 2001.

KCSI's  consolidated  costs and expenses  increased  $7.5 million (1%) to $521.9
million for the year ended  December 31, 2001 compared to $514.4 million for the
year ended December 31, 2000 resulting from higher KCSR expenses of $2.3 million
and higher  expenses at certain other  subsidiaries  of $5.2  million.  Costs at
other  subsidiaries in 2001 were higher  primarily as a result of a $3.0 million
reduction to the  allowance for doubtful  accounts  recorded in 2000 at the KCSI
Holding Company. Higher KCSR expenses were mostly attributable to a $5.0 million
increase  in car hire  costs  and a $6.6  million  increase  in  casualties  and
insurance costs.  These costs were partially offset by a $4.2 million decline in
salaries,  wages and fringe benefits  expense,  a $4.2 million  decrease in fuel
expense  and  a  $3.0  million  decline  in  materials  and  supplies   expense.
Contributing  to the increase in car hire expense was a higher number of freight
cars from other railroads on the Company's rail line coupled with a lower number
of KCSR freight cars being used by other  railroads.  Also  contributing  to the
increase in car hire expense was the larger  number of auto rack cars being used
to serve the  increase in  automotive  traffic  period to period.  Casualty  and
insurance  costs also rose  primarily due to several  significant  first quarter
2001  derailments  as well as  increases  made to the  personal  injury  reserve
arising from the Company's  annual  actuarial  study.  Salaries and wage expense
declined period to period due mostly to employee  headcount  reductions in March
2001 and operating efficiencies.  The decline in fuel expense resulted primarily
from lower market prices per gallon. The KCSR operating ratio for 2001 was 88.2%
compared to 88.3% for 2000.
<PAGE>

Excluding the impact of the extraordinary  item in 2000 discussed below,  equity
earnings  from the Company's  investment in Grupo TFM increased  $6.9 million to
$28.5 million for the year ended  December 31, 2001 versus $21.6 million for the
year ended  December 31, 2000.  During the first  quarter of 2001,  TFM recorded
approximately $54 million of pre-tax income relating to the reversion of certain
concession assets to the Mexican  government.  The Company's equity earnings for
the year ended December 31, 2001 from Grupo TFM reflect our proportionate  share
of this income of approximately $9.1 million.

Grupo TFM's revenues  increased 4% to $667.8 million for the year ended December
31, 2001 from $640.6 million for the year ended December 31, 2000.  These higher
revenues  were  offset by an  approximate  7%  increase  in  operating  expenses
(exclusive of the income related to the reversion of certain  concession  assets
to the Mexican  government)  resulting in a period to period  decline in ongoing
operating income of approximately  5%. Under U.S. GAAP, the deferred tax expense
for Grupo TFM was $10.9 million for the year ended December 31, 2001 compared to
a  deferred  tax  benefit  of  $13.2  million   (excluding  the  impact  of  the
extraordinary item) for the year ended December 31, 2000.

Equity earnings from the Company's  investment in Mexrail  declined $2.3 million
period to period,  while  equity  earnings  from  Southern  Capital  improved by
approximately  $1.0  million.  Additionally,  during 2001 the  Company  recorded
equity losses of approximately $1.6 million from its investment in PCRC relating
mostly to start-up costs.

Similar to the fourth  quarter of 2001, the Company's  interest  expense for the
year ended December 31, 2001 declined  $13.0 million  compared to the year ended
December 31, 2000 due to lower borrowing rates.

Effective  January  1,  2001 the  Company  implemented  Statement  of  Financial
Accounting Standard No. 133,  Accounting for Derivative  Instruments and Hedging
Activities  ("FAS 133").  As a result of this change in the method of accounting
for derivative financial  instruments,  the Company recorded an after-tax charge
to earnings of $0.4 million  (1(cent) per diluted share) in the first quarter of
2001. This charge is presented as a cumulative effect of an accounting change in
the accompanying  consolidated condensed statements of income for the year ended
December 31, 2001.  During the first  quarter of 2000,  the Company  completed a
debt  refinancing  whereby it  retired  approximately  $400  million of its debt
securities  prior to  maturity.  Also,  during the third  quarter  of 2000,  the
Company  refinanced  $200 million of bank debt with a $200  million  offering of
8-year  senior  unsecured  notes.  In  connection  with  these  debt-refinancing
transactions, KCSI recorded extraordinary debt retirement costs of approximately
$7.0 million (net of income  taxes).  Additionally,  during the third quarter of
2000, Grupo TFM refinanced  approximately  $285 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  KCSI and Grupo TFM debt  retirement  related
extraordinary  charges for 2000 were $8.7 million  (15(cent) per diluted share).
These  items  are  presented  as   extraordinary   items  in  the   accompanying
consolidated  condensed  statements  of income for the year ended  December  31,
2000.

BUSINESS OUTLOOK

Michael R. Haverty,  KCSI Chairman,  President and Chief Executive Officer said,
"in light of the current  economic  environment  facing  North  America,  we are
encouraged by our operating results for the fourth quarter. Domestically, KCSR's
fourth quarter revenues increased  approximately 8% versus the fourth quarter of
2000. KCSR's cost structure has continued to benefit from cost reduction actions
taken in  March  2001  and the  synergies  of an  efficient  and  well-operating
railroad.

Grupo TFM  continues  to  provide  significant  value as part of our NAFTA  rail
network.  Revenues for Grupo TFM  increased  4% for both the fourth  quarter and
year  ended 2001 and our equity  earnings  increased  79% and 32% for the fourth
quarter  and year  ended  2001,  respectively.  Through  Grupo  TFM,  we and our
partner,  Grupo TMM,  are  continuing  to pursue  the  purchase  of the  Mexican
government's  24.6%  ownership  in  Grupo  TFM  through  a  call  option.   This
transaction  has been  delayed  pending  improved  market  conditions  for Latin
American  companies and is expected to be complete as soon as market  conditions
become more  favorable.  We are excited about the  prospects of  increasing  our
ownership  position  in  Grupo  TFM,  which  is fast  becoming  one of the  rail
transportation leaders in North America.
<PAGE>

It is  regrettable  that  we had to  bring  legal  actions  challenging  certain
resolutions  adopted by Grupo TFM, but these actions were necessary to safeguard
our interests,  as well as the interests of our  shareholders,  in the Company's
investment  in Grupo  TFM.  This  matter  is  between  KCSI and Grupo TMM and we
continue to fully support Grupo TFM and its management team. I have met with Mr.
Jose  Serrano,  Chairman  and CEO of Grupo  TMM,  and we are  working to try and
resolve  the  issues  without a  protracted  legal  dispute.  KCSI is,  however,
prepared  to  pursue  the  litigation  to ensure  its  interests  in Mexico  are
protected.

In 2002,  our focus will be on  protecting  our revenue  base in a down  economy
while  continuing  to provide  quality  service to our  customers.  We will also
strive to further reduce our costs and our corporate debt  structure.  We expect
KCSR  coal  revenues  to  decline  in 2002 as a  result  of a  contractual  rate
reduction at one of our coal customers,  as well as the loss of certain business
due to the  expiration  of a contract  that is not  expected to be  renewed.  We
believe,  however  that this decline in coal  revenues  will be offset by higher
revenues for KCSR's  other  commodity  groups  through new business and targeted
rate increases.  We believe our railroad franchise is well positioned to benefit
from an economic recovery.  KCSR is currently  operating very efficiently and we
believe our cost structure is well controlled.  Given these factors,  we believe
that meaningful revenue growth arising from an economic recovery would result in
improved  profitability.  We expect continued success with Grupo TFM and believe
that PCRC will provide us with future earnings  growth  beginning in early 2003.
Our  commitment is to maximize the potential of our NAFTA rail network and build
long-term shareholder value."

(Note: The operating  results and related amounts included herein for the fourth
quarter and year ended  December  31, 2000 were derived from the Form 10-K/A for
the year ended December 31, 2000. These amounts reflect certain adjustments made
subsequent to our fourth quarter and year ended 2000 earnings press release.)

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, 2000 Form 10-K and the Current
Report on Form 8-K dated  December 11, 2001,  each 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 INDUSTRIES, INC. and SUBSIDIARY COMPANIES
                   CONSOLIDATED CONDENSED STATEMENTS OF INCOME
                      (excludes Discontinued Operations(1))
                  (dollars in millions, except per share data)
                                   (Unaudited)
<TABLE>
<S>                                                <C>      <C>        <C>      <C>
                                                   Three Months         Year Ended
                                                 Ended December 31,  Ended December 31,
                                                 -----------------   -----------------
                                                    2001     2000      2001      2000
                                                  -------  -------   -------   -------
   Revenues                                       $ 145.5  $ 134.8   $ 577.3   $ 572.2

   Costs and expenses                               110.7    114.2     463.9     458.3
   Depreciation and amortization                     14.4     13.7      58.0      56.1
                                                  -------  -------   -------   -------
   Operating income                                  20.4      6.9      55.4      57.8

   Equity in net earnings (losses) of
    unconsolidated affiliates:
     Grupo Transportacion Ferroviaria
      Mexicana, S.A. de C.V. (preliminary)            5.0      2.8      28.5      21.6
     Other                                           (1.2)    (1.1)     (1.4)      2.2
   Interest expense                                  (9.9)   (11.6)    (52.8)    (65.8)
   Other, net                                         1.2      1.2       4.2       6.0
                                                  -------  -------   -------   -------
   Income from continuing operations before
    income taxes, extraordinary items and
    cumulative effect of accounting change           15.5     (1.8)     33.9      21.8

   Income tax provision (benefit)                     4.4     (5.4)      2.8      (3.6)
                                                  -------  -------   -------   -------
   Income from continuing operations before
    extraordinary items and cumulative effect
    of accounting change                             11.1      3.6      31.1      25.4

   Extraordinary items, net of income taxes:
      Debt retirement costs                             -        -         -      (7.0)
      Debt retirement costs - TFM                       -        -         -      (1.7)

   Cumulative effect of accounting change, net
    of income taxes                                     -        -      (0.4)        -
                                                  -------  -------   -------   -------
   Income from continuing operations, net of
    extraordinary items and cumulative
    effect of accounting change                   $  11.1  $   3.6   $  30.7   $  16.7
                                                  =======  =======   =======   =======
  Per Share
   Data:

   Basic Weighted Average Common shares
    outstanding (in thousands)                     59,035   58,132    58,598    56,650

   Basic Earnings (Loss) per Common
    share from continuing operations              $  0.19  $  0.06   $  0.53   $  0.44
     Extraordinary items                               -        -         -      (0.15)
     Cumulative effect of accounting change            -        -      (0.01)       -
                                                  -------  -------   -------   -------
   Basic Earnings per Common share, net of
    extraordinary  items and cumulative effect
    of  accounting change                         $  0.19  $  0.06   $  0.52   $  0.29
                                                  =======  =======   =======   =======


   Diluted Weighted Average Common shares
    outstanding (in thousands)                     61,099   59,839    60,984     58,390

   Diluted Earnings (Loss) per Common share
    from continuing operations                    $  0.18  $  0.06   $  0.51   $  0.43

   Extraordinary items                                 -        -         -      (0.15)
   Cumulative effect of accounting change              -        -      (0.01)       -
                                                  -------  -------   -------   -------

   Diluted Earnings per Common
    share, net of extraordinary
    items and cumulative effect of
    accounting change                             $  0.18  $  0.06   $  0.50   $  0.28
                                                  =======  =======   =======   =======
</TABLE>

   (1) - Stilwell Financial Inc., the Company's formerly owned financial
         services segment

<PAGE>
         KANSAS CITY SOUTHERN INDUSTRIES, INC. and SUBSIDIARY COMPANIES
                   CONSOLIDATED CONDENSED STATEMENTS OF INCOME
                     (includes Discontinued Operations (1))
                  (dollars in millions, except per share data)
                                   (Unaudited)
<TABLE>

<S>                                                <C>      <C>        <C>      <C>
                                                   Three Months         Year Ended
                                                 Ended December 31,  Ended December 31,
                                                 -----------------   -----------------
                                                    2001     2000      2001      2000
                                                  -------  -------   -------   -------

   Revenues                                       $ 145.5  $ 134.8   $ 577.3   $ 572.2

   Costs and expenses                               110.7    114.2     463.9     458.3
   Depreciation and amortization                     14.4     13.7      58.0      56.1
                                                  -------  -------   -------   -------

   Operating income                                  20.4      6.9      55.4      57.8

   Equity in net earnings (losses) of
    unconsolidated affiliates:
     Grupo Transportacion Ferroviaria
      Mexicana, S.A. de C.V.  (preliminary)           5.0      2.8      28.5      21.6
     Other                                           (1.2)    (1.1)     (1.4)      2.2
   Interest expense                                  (9.9)   (11.6)    (52.8)    (65.8)
   Other, net                                         1.2      1.2       4.2       6.0
                                                  -------  -------   -------   -------
   Income from continuing operations before
    income taxes, extraordinary items and
    cumulative effect of accounting change          15. 5     (1.8)     33.9      21.8

   Income tax provision (benefit)                     4.4     (5.4)      2.8      (3.6)
                                                  -------  -------   -------   -------
   Income from continuing operations before
    extraordinary items and cumulative effect
    of accounting change                             11.1      3.6      31.1      25.4
   Income from discontinued operations (1)
    (net of income taxes)                               -        -         -     363.8
                                                  -------  -------   -------   -------

   Income before extraordinary items and
    cumulative effect of accounting change           11.1      3.6      31.1     389.2
   Extraordinary items, net of income taxes:
      Debt retirement costs                             -        -         -      (7.0)
      Debt retirement costs - TFM                       -        -         -      (1.7)
   Cumulative effect of accounting change, net
    of income taxes                                     -        -      (0.4)        -
                                                  -------  -------   -------   -------
   Net income                                     $  11.1  $   3.6   $  30.7   $ 380.5
                                                  =======  =======   =======   =======
   Per Share Data:

   Basic Weighted Average Common shares
    outstanding (in thousands)                     59,035   58,132    58,598    56,650
   Basic Earnings per Common share
      Continuing operations                       $  0.19  $  0.06   $  0.53   $  0.44
      Discontinued operations                          -        -         -       6.42
                                                  -------  -------   -------   -------
   Basic Earnings (Loss) per Common share before
    extraordinary items and cumulative effect of
    accounting change                                0.19     0.06      0.53      6.86

   Extraordinary items                                 -        -         -      (0.15)
   Cumulative effect of accounting change              -        -      (0.01)       -
                                                  -------  -------   -------   -------
   Basic Earnings per Common share                $  0.19  $  0.06   $  0.52   $  6.71
                                                  -------  -------   -------   -------

   Diluted Weighted Average Common shares
    outstanding (in thousands)                     61,099   59,839    60,984    58,390

   Diluted Earnings per Common share
      Continuing operations                       $  0.18  $  0.06   $  0.51   $  0.43
      Discontinued operations                          -        -         -       6.14
                                                  -------  -------   -------   -------

   Diluted Earnings (Loss) per Common share before
    extraordinary items and cumulative effect of
    accounting change                                0.18     0.06      0.51      6.57

   Extraordinary items                                 -        -         -      (0.15)
   Cumulative effect of accounting change              -        -      (0.01)       -
                                                  -------  -------   -------   -------
   Diluted Earnings per Common share                 0.18     0.06      0.50      6.42


   (1) - Stilwell Financial Inc., the Company's formerly owned financial
         services segment
</TABLE>
<PAGE>

EXHIBIT 99.2
Kansas City Southern Railway*
Operating Statements
Dollars in Millions
<TABLE>
<S>                              <C>             <C>               <C>                  <C>

                            Fourth Quarter Fourth Quarter     Twelve Months  Twelve Months
                                2001           2000               2001           2000
                            -------------  -------------      -------------  -------------
Revenues
    Freight Revenue             $    87.0      $    82.6          $   340.3      $   348.5
    Intermodal and Automotive
     Revenue                         15.1           15.7               66.0           62.1
    Unit Coal Revenue                31.0           22.2              115.8          103.6
    Haulage Revenue                   3.4            3.5               13.0           12.6
    Other Revenue                     6.9            8.3               31.3           36.3
                            -------------  -------------      -------------  -------------
      Total Revenues                143.4          132.3              566.4          563.1
                            -------------  -------------      -------------  -------------

Operating Expenses
    Salaries & Wages                 32.6           35.6              133.7          139.3
    Fringe Benefits                  13.6           11.3               54.0           52.6
    Fuel                              8.6           12.8               43.9           48.1
    Material and Supplies             5.4            6.9               27.5           30.5
    Car Hire                          4.1            3.7               19.8           14.8
    Purchased Services               10.7           12.0               47.7           47.9
    Casualties & Insurance           12.9            9.5               40.6           34.0
    Other                             2.7            2.9               10.3            9.0
                            -------------  -------------      -------------  -------------
      Net Operating Expenses         90.6           94.7              377.5          376.2
                            -------------  -------------      -------------  -------------

Fixed Expenses
    Leases, Net                      13.6           13.1               54.6           55.6
    Depreciation                     13.5           12.7               54.1           52.1
    Taxes (Other Than Income)         3.7            2.1               13.2           13.2
                            -------------  -------------      -------------  -------------
      Total Fixed Expenses           30.8           27.9              121.9          120.9
                            -------------  -------------      -------------  -------------
    Total Expenses                  121.4          122.6              499.4          497.1
                            -------------  -------------      -------------  -------------

Operating Income                $    22.0      $     9.7          $    67.0      $    66.0

</TABLE>

*    Includes the operations of the Gateway Western Railway  Company.  Effective
     October 1, 2001,  Gateway  Western was merged into the Kansas City Southern
     Railway.
<PAGE>

Kansas City Southern Railway*
Carloadings By Commodity - Year Ended December 31, 2001
Dollars in Thousands
<TABLE>
<S>            <C>       <C>           <C>                 <C>        <C>        <C>

          Carloadings                                               Revenue

     Year to Date         %                                    Year to Date        %
----------------------                                    ---------------------
   2001         2000    Change                              2001        2000     Change
----------   ---------  -------                           ---------   ---------  -------

                                      Coal

  197,166     180,949    9.0%        Unit Coal            $115,825    $103,617    11.8%
    5,167       3,216   60.7%        Other Coal              2,923       1,343   117.6%
----------   ---------                                    ---------   ---------
  202,333     184,165    9.9%                Total         118,748     104,960    13.1%


                                  Chemical & Petroleum Products
    6,704       9,135  (26.6)%       Agri Chemicals          5,304       6,422   (17.4)%
   11,393      13,817  (17.5)%       Gases                  10,420      12,468   (16.4)%
   22,138      25,749  (14.0)%       Organic                22,554      24,345    (7.4)%
   19,419      16,976   14.4%        Inorganic              20,544      19,684     4.4%
   59,455      62,171   (4.4)%       Petroleum              38,037      38,239    (0.5)%
   26,892      26,276    2.3%        Plastics               26,904      24,416    10.2%
----------   ---------                                    ---------   ---------
  146,001     154,124   (5.3)%               Total         123,763     125,574    (1.4)%
----------   ---------                                    ---------   ---------

                                 Agriculture and  Minerals

   47,408      49,201   (3.6)%       Domestic Grain         32,789      36,488   (10.1)%
   13,309      11,060   20.3%        Export Grain            9,595       8,077    18.8%
   26,347      29,458  (10.6)%       Food Products          21,879      23,537    (7.0)%
   23,467      25,528   (8.1)%       Ores and Minerals      12,434      13,192    (5.7)%
   15,145      16,721   (9.4)%       Stone, Clay & Glass    11,220      12,311    (8.9)%
----------   ---------                                    ---------   ---------
  125,676     131,968   (4.8)%               Total          87,917      93,605    (6.1)%
----------   ---------                                    ---------   ---------

                                 Paper & Forest Products
   85,634      90,577   (5.5)%       Pulp/Paper             61,195      63,294    (3.3)%
    6,960       7,181   (3.1)%       Scrap Paper             3,812       3,898    (2.2)%
   36,184      33,675    7.5%        Pulpwood/Logchips      15,037      13,439    (2.2)%
   26,268      28,291   (7.2)%       Lumber/Plywood         23,109      24,879    (7.1)%
   19,857      25,100  (20.9)%       Metal/Scrap            15,315      18,847   (18.7)%
                                     Military/Other
    9,104       7,620   19.5%         Carloads              11,880       7,975    49.0%
----------   ---------                                    ---------   ---------
  184,007     192,444   (4.4)%               Total         130,348     132,332    (1.5)%
----------   ---------                                    ---------   ---------

                                  Intermodal & Automotive
   34,684      21,655   60.2%        Automotive             21,488      12,467    72.4%
  256,429     247,604    3.6%        Intermodal             44,488      49,621   (10.3)%
----------   ---------                                    ---------   ---------
  291,113     269,259    8.1%                Total          65,976      62,088   (10.3)%
----------   ---------                                    ---------   ---------
                                  TOTAL FOR BUSINESS
  949,130     931,960    1.8%      UNITS                   526,752     518,559     1.6%

   34,762      41,499  (16.2)%    Haulage                   13,043      12,565     3.8%

   (9,125)     (8,561)   6.6%     Adjustments               (4,609)     (4,369)    5.5%
----------   ---------                                    ---------   ---------

  974,767     964,898    1.0%                TOTAL        $535,186    $526,755     1.6%
==========   =========                                    =========   =========

*    Includes the  operations  of Gateway  Western  Railway  Company.  Effective
     October 1, 2001,  Gateway  Western  Railway was merged into the Kansas City
     Southern Railway.
</TABLE>
<PAGE>
Kansas City Southern Railway*
Carloadings By Commodity - Fourth Quarter 2001
Dollars in Thousands
<TABLE>
<S>            <C>       <C>           <C>                 <C>        <C>        <C>

          Carloadings                                               Revenue

    Fourth Quarter         %                                 Fourth Quarter         %
----------------------                                    ---------------------
   2001        2000     Change                              2001        2000     Change
----------   ---------  -------                           ---------   ---------  -------
                                      Coal
   52,899      39,451   34.1%         Unit Coal           $ 30,989    $ 22,211    39.5%
    1,441         914   57.7%         Other Coal               803         477    68.3%
----------   ---------                                    ---------   ---------
   54,340      40,365   34.6%                Total          31,792      22,688    40.1%

                                   Chemical & Petroleum Products

    1,777       2,146  (17.2)%       Agri Chemicals          1,391       1,488    (6.5)%
    2,989       3,301   (9.5)%       Gases                   2,746       2,921    (6.0)%
    5,359       6,052  (11.5)%       Organic                 5,690       5,694    (0.1)%
    4,825       4,043   19.3%        Inorganic               5,171       4,607    12.2%
   13,573      14,599   (7.0)%       Petroleum               9,167       8,703     5.3%
    6,886       6,466    6.5%        Plastics                6,647       6,417     3.6%
----------   ---------                                    ---------   ---------
   35,409      36,607   (3.3)%               Total          30,812      29,830     3.3%
----------   ---------                                    ---------   ---------

                                   Agriculture and  Minerals

   11,599      10,993    5.5%         Domestic Grain         8,220       8,742    (6.0)%
    4,838       2,674   80.9%         Export Grain           4,000       2,165    84.8%
    6,581       7,194   (8.5)%        Food Products          5,619       5,906    (4.9)%
    5,516       5,510    0.1%         Ores and Minerals      2,864       3,136    (8.7)%
    3,666       3,796   (3.4)%        Stone, Clay &
                                       Glass                 2,738       2,800    (2.2)%
----------   ---------                                    ---------   ---------
   32,200      30,167    6.7%                Total          23,441      22,749     3.0%
----------   ---------                                    ---------   ---------

                                 Paper & Forest  Products

   22,386      21,603    3.6%         Pulp/Paper            16,530      15,227     8.6%
    1,882       1,938   (2.9)%        Scrap Paper            1,072       1,052     1.9%
    9,238       7,637   21.0%         Pulpwood/Logs/Chips    3,852       3,103    24.1%
    6,301       6,603   (4.6)%        Lumber/Plywood         5,745       5,787    (0.7)%
    3,571       5,581  (36.0)%        Metal/Scrap            2,654       4,288   (38.1)%
    2,246       1,660   35.3%         Military/Other
                                       carloads              3,188       1,793    77.8%
----------   ---------                                    ---------   ---------
   45,624      45,022    1.3%                Total          33,041      31,250     5.7%
----------   ---------                                    ---------   ---------

                                  Intermodal & Automotive

    6,042       6,668   (9.4)%        Automotive             3,745       3,696     1.3%
   64,387      67,926   (5.2)%        Intermodal            11,351      12,004    (5.4)%
----------   ---------                                    ---------   ---------
   70,429      74,594   (5.6)%               Total          15,096      15,700    (3.8)%
----------   ---------                                    ---------   ---------
                                   TOTAL FOR BUSINESS
  238,002     226,755    5.0%         UNITS                134,182     122,217     9.8%

    9,197       8,863    3.8%      Haulage                   3,399       3,544    (4.1)%

   (2,097)     (2,721)  (22.9)%    Adjustments              (1,130)     (1,704)  (33.7)%
----------   ---------                                    ---------   ---------

  245,102     232,897    5.2%                TOTAL        $136,451    $124,057    10.0%
==========   =========                                    =========   =========
</TABLE>

*    Includes the  operations  of Gateway  Western  Railway  Company.  Effective
     October 1, 2001,  Gateway  Western  Railway was merged into the Kansas City
     Southern Railway.

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

                                               December 31,               December 31,
                                                   2001                       2000
                                             ----------------           ----------------
Assets
  Cash                                           $       24.7               $       21.5
  Accounts receivable                                   130.0                      135.0
  Inventories                                            27.9                       34.0
  Other current assets                                   44.2                       25.9
                                             ----------------           ----------------
     Total current assets                               226.8                      216.4

  Investments held for operating purposes               386.8                      358.2
  Properties, net of depreciation                     1,327.4                    1,327.8
  Other assets                                           42.3                       42.1
                                             ----------------           ----------------

      Total assets                               $    1,983.3               $    1,944.5
                                             ================           ================

Liabilities and Stockholders' Equity

  Current portion of long-term debt              $       46.7               $       36.2
  Accounts payable                                       50.4                       52.9
  Accrued liabilities                                   132.8                      159.9
                                             ----------------           ----------------
     Total current liabilities                          229.9                      249.0

  Long-term debt                                        611.7                      638.4
  Deferred income taxes                                 370.2                      332.2
  Other                                                  91.2                       81.5
  Stockholders' equity                                  680.3                      643.4
                                             ----------------           ----------------
   Total liabilities and stockholders'
     equity                                      $    1,983.3               $    1,944.5
                                             ================           ================
</TABLE>
<PAGE>
                        KANSAS CITY SOUTHERN INDUSTRIES, INC.
                               STATEMENT OF CASH FLOWS
                           YEAR TO DATE - DECEMBER 31, 2001
                                    (in thousands)
                                     (Unaudited)

              CASH FLOWS PROVIDED BY (USED FOR):
              OPERATING ACTIVITIES:

               Net income                                               $30,739
               Adjustments to net income:
                   Depreciation and amortization                         58,093
                   Deferred income taxes                                 31,660
                   Equity in undistributed earnings                     (27,075)
                   Distributions from unconsolidated                      3,000
                   Gain on Sale of Property                              (5,774)
                   Gain on Sale of Investments                               82
               Tax Benefit Associated with Exercised Stock Options        5,583
               Changes in working capital items:
                   Accounts receivable                                    3,997
                   Inventories                                            6,182
                   Other current assets                                   7,998
                   Accounts payable                                      (5,097)
                   Accrued liabilities                                  (47,926)
               Other, net                                                14,603
                                                                  -------------

                  Net from operations                                    76,066
                                                                  -------------

              INVESTING ACTIVITIES:
               Property acquisitions                                    (66,001)
               Proceeds from disposals of property                       18,133
               Investments in and Loans to affiliates                    (8,168)
               Proceeds from disposal of investments                        634
               Other, net                                                  (306)
                                                                  -------------
                  Net from investing                                    (55,707)
                                                                  -------------

              FINANCING ACTIVITIES:
               Proceeds from issuance of long-term debt                  35,000
               Repayment of long-term debt                              (51,287)
               Debt issue and recapitalization costs                       (389)
               Proceeds from stock plans                                  8,898
               Cash dividends paid                                         (242)
               Other, net                                                (9,155)
                                                                  -------------
                 Net from financing                                     (17,175)
                                                                  -------------

             CASH AND EQUIVALENTS:
               Net increase                                               3,184
               At beginning of year                                      21,536
                                                                  -------------
               At end of period                                         $24,720
                                                                  -------------
[{"type": "8-K", "sequence": "1", "filename": "fourthquarter2001earnings.txt", "secsgml_size_bytes": 55421}]
{"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": "02530095"}, "business-address": {"street1": "114 W 11TH ST", "city": "KANSAS CITY", "state": "MO", "zip": "64105", "phone": "8169831303"}, "mail-address": {"street1": "114 WEST 11TH STREET", "city": "KANSAS CITY", "state": "MO", "zip": "64105"}}
SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT

                     Pursuant to Section 13 or 15(d) of the

                         Securities Exchange Act of 1934

                Date of Report (Date of earliest event reported):
                                January 31, 2002

                      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 7.     Financial Statements and Exhibits

(c)         Exhibits

            Exhibit No.                         Document

            (99)                                Additional Exhibits

            99.1                              Press Release issued by Kansas
                                              City Southern Industries, Inc.
                                              dated January 31, 2002 entitled,
                                              "Kansas City Southern Industries
                                              Reports Improved Fourth Quarter
                                              and Year to Date Earnings", is
                                              attached hereto as Exhibit 99.1

            99.2                              The following schedules are
                                              attached hereto as Exhibit 99.2 -
                                              Kansas City Southern Railway
                                              Operating Statements, Kansas City
                                              Southern Railway Carloadings by
                                              Commodity, Kansas City Southern
                                              Industries, Inc. Consolidated
                                              Balance Sheets and Kansas City
                                              Southern Industries, Inc.
                                              Statement of Cash Flows

Item 9.     Regulation FD Disclosure

Kansas City Southern Industries,  Inc. ("KCSI" 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 31, 2001,  announcing  KCSI's fourth quarter and year to
date 2001 operating  results.  Included in Exhibit 99.2 are schedules  regarding
certain  financial  information  discussed at the Company's  fourth quarter 2001
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 Industries, Inc.

Date: February 7, 2002                    By: /s/  Louis G. Van Horn
                                             ----------------------------
                                                   Louis G. Van Horn
                                             Vice President and Comptroller
                                             (Principal Accounting Officer)
EXHIBIT 99.1

                                                         Date  January 31, 2002

Kansas City Southern               Media Contact: William Galligan 816-983-1551
Industries, Inc.                   william.h.galligan@kcsr.com
114 West 11th Street
Kansas City, MO 64105              NYSE Symbol: KSU

                   Kansas City Southern Industries Reports Improved
                       Fourth Quarter and Year to Date Earnings

EARNINGS ANALYSIS AND COMMENTARY

KCSI reported  fourth  quarter 2001 income from  continuing  operations of $11.1
million  (18(cent)  per diluted  share)  compared to $3.6  million  (6(cent) per
diluted share) in the fourth  quarter of 2000.  This $7.5 million (208%) quarter
to quarter increase resulted primarily from an improvement in domestic operating
income of $13.5 million,  a $2.2 million increase in equity earnings (based upon
preliminary information) from Grupo Transportacion Ferroviaria Mexicana, S.A. de
C.V.  ("Grupo  TFM") and a decline in interest  expense of $1.7  million.  These
improvements  were partially offset by a $9.8 million increase in the income tax
provision.  KCSI's  consolidated  fourth  quarter 2001 revenue  increased  $10.7
million and  operating  expenses  declined  $2.8 million  compared to the fourth
quarter of 2000, resulting in the $13.5 million improvement in operating income.

For the year ended  December 31, 2001,  income from  continuing  operations  was
$31.1 million  (51(cent) per diluted share) compared to $25.4 million  (43(cent)
per diluted  share) for the year ended  December  31,  2000.  This $5.7  million
period to period increase was primarily due to a $6.9 million increase in equity
earnings  from  Grupo  TFM and a $13.0  million  decrease  in  interest  expense
partially offset by a $2.4 million decrease in domestic operating income, a $3.6
million decrease in equity earnings from other  unconsolidated  affiliates and a
$6.4 million increase in the income tax provision.  Equity earnings for the year
ended December 31, 2001 reflect 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.

As previously announced,  NAFTA Rail, a wholly-owned Mexican subsidiary of KCSI,
filed an action in a Mexican court challenging,  among other items, a resolution
purportedly  approved by the shareholders of Grupo TFM ordering the payment of a
dividend to the shareholders of Grupo TFM. The CEO's of both KCSI and Grupo TMM,
S.A.  de C.V.  ("Grupo  TMM") have met and are  currently  working to settle the
issues  surrounding the litigation and KCSI hopes to resolve these matters prior
to the filing of the Company's  Form 10-K for the year ended  December 31, 2001.
NAFTA  Rail has not  received  this  dividend.  If,  however,  the  dividend  is
determined  to be a 2001  transaction  at the time of KCSI's  filing of its Form
10-K, or if these  matters are resolved  unfavorably  to KCSI,  the Company will
record a $6.7 million charge (11(cent) per diluted share) for the fourth quarter
and year ended  December 31, 2001.  This charge would  represent  the  Company's
proportionate decline in its investment in Grupo TFM arising from the accounting
for a tax recorded by Grupo TFM as a result of the dividend.  This charge is not
reflected in the attached financial information.
DILUTED EARNINGS PER SHARE AND COMMON SHARES COMPARISONS (1)
Fourth Quarter              Year to Date
                                         ---------------------      ---------------------
                                            2001        2000           2001        2000
                                            ----        ----           ----        ----
Income from continuing operations:

  U.S. operations                           $ 0.16      $ 0.10         $ 0.33      $ 0.41
  Grupo TFM and PCRC (including
   associated interest)                       0.02       (0.04)          0.18        0.02
                                         ---------   ---------      ---------   ---------
  Income from continuing operations           0.18        0.06           0.51        0.43
Extraordinary debt retirement costs,
   net of income tax                           -            -              -        (0.15)
Cumulative effect of accounting change,
   net of income tax(2)                        -            -           (0.01)         -
                                         ---------   ---------      ---------   ---------
    Total diluted earnings per share
     from continuing operations,
     adjusted for the extraordinary
     items and cumulative effect of
     accounting change                      $ 0.18      $ 0.06         $ 0.50      $ 0.28
                                         ---------   ---------      ---------   ---------

Common Shares Outstanding
(thousands):

   Weighted Average Diluted                61,099       59,839         60,984      58,390
   Actual                                  59,243       58,147         59,243      58,147
(1)Earnings per share and common  share  information  for each period  presented
   reflect a  one-for-two  reverse stock split that occurred on July 12, 2000 in
   conjunction  with the  spin-off of Stilwell  Financial  Inc.,  the  Company's
   formerly owned financial services segment.

(2)Reflects the adoption of Statement of Financial Accounting Standard No. 133,
   Accounting for Derivative Instruments and Hedging Activities.

FOURTH QUARTER

KCSI is comprised of, among others,  The Kansas City  Southern  Railway  Company
("KCSR")  and  equity  investments  in Grupo  TFM,  Mexrail,  Inc.  ("Mexrail"),
Southern  Capital  Corporation  ("Southern  Capital")  and Panama Canal  Railway
Company  ("PCRC").  Effective  October 1, 2001,  Gateway Western Railway Company
("Gateway  Western") was merged into KCSR.  Discussions  of KCSR herein  include
consideration of the operations and operating results of Gateway Western.

KCSI's consolidated fourth quarter 2001 revenues totaled $145.5 million compared
to $134.8 million in the fourth quarter of 2000. This 8% increase  resulted from
higher KCSR revenues, which increased $11.1 million to $143.4 million, partially
offset by a slight  decrease in revenues from certain other  subsidiaries.  KCSR
revenue growth was driven primarily by strength in coal revenues, which improved
$9.1  million  (40%)  quarter to  quarter.  Net tons of coal  shipped  increased
approximately  35% quarter to quarter due to demand driven  increases at certain
utility plants  compared to the prior year fourth quarter  resulting from higher
than usual  deliveries to replenish  stockpiles  and to satisfy  weather-related
demands. Additionally, a coal-burning utility plant that had been out of service
since January 1999 began taking shipments in the second quarter of 2001. Quarter
to quarter  revenue  increases also occurred for paper  products,  export grain,
certain   chemical  and  plastics   products  and  military   shipments.   These
improvements  were partially  offset by quarter to quarter revenue  declines for
domestic grain, food products,  ore and mineral products,  steel and scrap metal
shipments  and  intermodal  products,  primarily  reflecting  the existing  slow
economic  conditions.  Quarter to quarter revenues increased 3% for all non-coal
commodity groups on a combined basis.

KCSI's  consolidated  costs and  expenses  declined  $2.8  million in the fourth
quarter  of 2001 to $125.1  million  compared  to $127.9  million  in the fourth
quarter of 2000.  This  resulted  from a $1.2 million  decrease in KCSR expenses
coupled with a $1.6 million decrease in expenses at certain other  subsidiaries.
At KCSR, quarter to quarter declines in salaries and wages ($3.0 million),  fuel
($4.2  million),  materials and supplies ($1.5  million) and purchased  services
($1.3  million)  were  partially  offset by increases in fringe  benefits  ($2.3
million) and casualties and insurance ($3.4  million).  Lower costs for salaries
and wages reflect the employee headcount  reductions  effected in March 2001 and
operating  efficiency  at KCSR,  while lower fuel costs reflect the reduction in
the market  price of fuel.  Fringe  benefits  expense  increased  as a result of
higher health care costs and casualties and insurance  expense increased quarter
to quarter  primarily as a result of an increase in the personal injury reserves
arising from the Company's  annual actuarial study. The KCSR operating ratio for
the fourth  quarter of 2001 improved to 84.7% compared to 92.7% in the same 2000
period.
Equity earnings related to the Company's  investment in Grupo TFM increased $2.2
million to $5.0  million in the fourth  quarter of 2001 from $2.8 million in the
fourth  quarter of 2000.  Grupo TFM revenues  were $171.8  million in the fourth
quarter of 2001,  a 4% increase  compared to the fourth  quarter of 2000.  Total
costs and expenses at Grupo TFM increased 2% quarter to quarter, while operating
profit increased 9% (computed under accounting  principles generally accepted in
the United  States of America - "U.S.  GAAP").  Under  International  Accounting
Standards,  TFM's  operating  ratio  was 76.9% for the  fourth  quarter  of 2001
compared  to 78.6% for the fourth  quarter of 2000.  Additionally,  Grupo  TFM's
fourth  quarter  2001  results  include a deferred  tax benefit of $1.7  million
(calculated  under U.S. GAAP) compared to a deferred tax expense of $0.3 million
for the  fourth  quarter  of 2000.  The  favorable  change in the  deferred  tax
calculation  of Grupo TFM is mostly  attributable  to  fluctuations  in the peso
exchange rate and inflation in Mexico.  The Company  reports its equity in Grupo
TFM under U.S.  GAAP while  Grupo TFM  reports  under  International  Accounting
Standards.

Equity earnings from the Company's  investment in Mexrail  declined $0.1 million
quarter to quarter,  while equity  earnings  from Southern  Capital  improved by
approximately $0.5 million. Additionally, the reconstruction of the rail line in
Panama was  completed in July 2001 and the  operations  of PCRC have  commenced.
During the  fourth  quarter  of 2001,  the  Company  recorded  equity  losses of
approximately  $0.6 million from its investment in PCRC relating mostly to costs
associated with the start-up of the business.

KCSI's  consolidated  interest  expense for the fourth quarter of 2001 decreased
$1.7 million  (15%) from the prior year  quarter  primarily as a result of lower
interest rates on our variable rate debt.

YEAR TO DATE

KCSI's consolidated  revenues totaled $577.3 million for the year ended December
31, 2001 compared to $572.2 million for the year ended  December 31, 2000.  This
$5.1 million increase  resulted from higher KCSR revenues of approximately  $3.3
million partially coupled with higher revenues from certain other  subsidiaries.
Revenue  growth in 2001  occurred  primarily  in coal (13%),  automotive  (72%),
plastics  (10%),  military/other  (49%),  export grain (19%) and certain  forest
products.  These revenue  improvements were partially offset by overall declines
in chemical and petroleum products (1%),  agriculture and mineral products (6%),
paper and forest  products (2%) and  intermodal  revenues  (10%)  primarily as a
result of lower production due to the weakness in the U.S. economy.  Agriculture
and mineral product revenues were affected by lower domestic grain shipments due
a general  decline in poultry  production in the United States.  This decline in
poultry  production in the United States resulted in decreased  demand for grain
deliveries to our customers during 2001.

KCSI's  consolidated  costs and expenses  increased  $7.5 million (1%) to $521.9
million for the year ended  December 31, 2001 compared to $514.4 million for the
year ended December 31, 2000 resulting from higher KCSR expenses of $2.3 million
and higher  expenses at certain other  subsidiaries  of $5.2  million.  Costs at
other  subsidiaries in 2001 were higher  primarily as a result of a $3.0 million
reduction to the  allowance for doubtful  accounts  recorded in 2000 at the KCSI
Holding Company. Higher KCSR expenses were mostly attributable to a $5.0 million
increase  in car hire  costs  and a $6.6  million  increase  in  casualties  and
insurance costs.  These costs were partially offset by a $4.2 million decline in
salaries,  wages and fringe benefits  expense,  a $4.2 million  decrease in fuel
expense  and  a  $3.0  million  decline  in  materials  and  supplies   expense.
Contributing  to the increase in car hire expense was a higher number of freight
cars from other railroads on the Company's rail line coupled with a lower number
of KCSR freight cars being used by other  railroads.  Also  contributing  to the
increase in car hire expense was the larger  number of auto rack cars being used
to serve the  increase in  automotive  traffic  period to period.  Casualty  and
insurance  costs also rose  primarily due to several  significant  first quarter
2001  derailments  as well as  increases  made to the  personal  injury  reserve
arising from the Company's  annual  actuarial  study.  Salaries and wage expense
declined period to period due mostly to employee  headcount  reductions in March
2001 and operating efficiencies.  The decline in fuel expense resulted primarily
from lower market prices per gallon. The KCSR operating ratio for 2001 was 88.2%
compared to 88.3% for 2000.
Excluding the impact of the extraordinary  item in 2000 discussed below,  equity
earnings  from the Company's  investment in Grupo TFM increased  $6.9 million to
$28.5 million for the year ended  December 31, 2001 versus $21.6 million for the
year ended  December 31, 2000.  During the first  quarter of 2001,  TFM recorded
approximately $54 million of pre-tax income relating to the reversion of certain
concession assets to the Mexican  government.  The Company's equity earnings for
the year ended December 31, 2001 from Grupo TFM reflect our proportionate  share
of this income of approximately $9.1 million.

Grupo TFM's revenues  increased 4% to $667.8 million for the year ended December
31, 2001 from $640.6 million for the year ended December 31, 2000.  These higher
revenues  were  offset by an  approximate  7%  increase  in  operating  expenses
(exclusive of the income related to the reversion of certain  concession  assets
to the Mexican  government)  resulting in a period to period  decline in ongoing
operating income of approximately  5%. Under U.S. GAAP, the deferred tax expense
for Grupo TFM was $10.9 million for the year ended December 31, 2001 compared to
a  deferred  tax  benefit  of  $13.2  million   (excluding  the  impact  of  the
extraordinary item) for the year ended December 31, 2000.

Equity earnings from the Company's  investment in Mexrail  declined $2.3 million
period to period,  while  equity  earnings  from  Southern  Capital  improved by
approximately  $1.0  million.  Additionally,  during 2001 the  Company  recorded
equity losses of approximately $1.6 million from its investment in PCRC relating
mostly to start-up costs.

Similar to the fourth  quarter of 2001, the Company's  interest  expense for the
year ended December 31, 2001 declined  $13.0 million  compared to the year ended
December 31, 2000 due to lower borrowing rates.

Effective  January  1,  2001 the  Company  implemented  Statement  of  Financial
Accounting Standard No. 133,  Accounting for Derivative  Instruments and Hedging
Activities  ("FAS 133").  As a result of this change in the method of accounting
for derivative financial  instruments,  the Company recorded an after-tax charge
to earnings of $0.4 million  (1(cent) per diluted share) in the first quarter of
2001. This charge is presented as a cumulative effect of an accounting change in
the accompanying  consolidated condensed statements of income for the year ended
December 31, 2001.  During the first  quarter of 2000,  the Company  completed a
debt  refinancing  whereby it  retired  approximately  $400  million of its debt
securities  prior to  maturity.  Also,  during the third  quarter  of 2000,  the
Company  refinanced  $200 million of bank debt with a $200  million  offering of
8-year  senior  unsecured  notes.  In  connection  with  these  debt-refinancing
transactions, KCSI recorded extraordinary debt retirement costs of approximately
$7.0 million (net of income  taxes).  Additionally,  during the third quarter of
2000, Grupo TFM refinanced  approximately  $285 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  KCSI and Grupo TFM debt  retirement  related
extraordinary  charges for 2000 were $8.7 million  (15(cent) per diluted share).
These  items  are  presented  as   extraordinary   items  in  the   accompanying
consolidated  condensed  statements  of income for the year ended  December  31,
2000.

BUSINESS OUTLOOK

Michael R. Haverty,  KCSI Chairman,  President and Chief Executive Officer said,
"in light of the current  economic  environment  facing  North  America,  we are
encouraged by our operating results for the fourth quarter. Domestically, KCSR's
fourth quarter revenues increased  approximately 8% versus the fourth quarter of
2000. KCSR's cost structure has continued to benefit from cost reduction actions
taken in  March  2001  and the  synergies  of an  efficient  and  well-operating
railroad.

Grupo TFM  continues  to  provide  significant  value as part of our NAFTA  rail
network.  Revenues for Grupo TFM  increased  4% for both the fourth  quarter and
year  ended 2001 and our equity  earnings  increased  79% and 32% for the fourth
quarter  and year  ended  2001,  respectively.  Through  Grupo  TFM,  we and our
partner,  Grupo TMM,  are  continuing  to pursue  the  purchase  of the  Mexican
government's  24.6%  ownership  in  Grupo  TFM  through  a  call  option.   This
transaction  has been  delayed  pending  improved  market  conditions  for Latin
American  companies and is expected to be complete as soon as market  conditions
become more  favorable.  We are excited about the  prospects of  increasing  our
ownership  position  in  Grupo  TFM,  which  is fast  becoming  one of the  rail
transportation leaders in North America.
It is  regrettable  that  we had to  bring  legal  actions  challenging  certain
resolutions  adopted by Grupo TFM, but these actions were necessary to safeguard
our interests,  as well as the interests of our  shareholders,  in the Company's
investment  in Grupo  TFM.  This  matter  is  between  KCSI and Grupo TMM and we
continue to fully support Grupo TFM and its management team. I have met with Mr.
Jose  Serrano,  Chairman  and CEO of Grupo  TMM,  and we are  working to try and
resolve  the  issues  without a  protracted  legal  dispute.  KCSI is,  however,
prepared  to  pursue  the  litigation  to ensure  its  interests  in Mexico  are
protected.

In 2002,  our focus will be on  protecting  our revenue  base in a down  economy
while  continuing  to provide  quality  service to our  customers.  We will also
strive to further reduce our costs and our corporate debt  structure.  We expect
KCSR  coal  revenues  to  decline  in 2002 as a  result  of a  contractual  rate
reduction at one of our coal customers,  as well as the loss of certain business
due to the  expiration  of a contract  that is not  expected to be  renewed.  We
believe,  however  that this decline in coal  revenues  will be offset by higher
revenues for KCSR's  other  commodity  groups  through new business and targeted
rate increases.  We believe our railroad franchise is well positioned to benefit
from an economic recovery.  KCSR is currently  operating very efficiently and we
believe our cost structure is well controlled.  Given these factors,  we believe
that meaningful revenue growth arising from an economic recovery would result in
improved  profitability.  We expect continued success with Grupo TFM and believe
that PCRC will provide us with future earnings  growth  beginning in early 2003.
Our  commitment is to maximize the potential of our NAFTA rail network and build
long-term shareholder value."

(Note: The operating  results and related amounts included herein for the fourth
quarter and year ended  December  31, 2000 were derived from the Form 10-K/A for
the year ended December 31, 2000. These amounts reflect certain adjustments made
subsequent to our fourth quarter and year ended 2000 earnings press release.)

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, 2000 Form 10-K and the Current
Report on Form 8-K dated  December 11, 2001,  each 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 INDUSTRIES, INC. and SUBSIDIARY COMPANIES
                   CONSOLIDATED CONDENSED STATEMENTS OF INCOME
                      (excludes Discontinued Operations(1))
                  (dollars in millions, except per share data)
                                   (Unaudited)
Three Months         Year Ended
                                                 Ended December 31,  Ended December 31,
                                                 -----------------   -----------------
                                                    2001     2000      2001      2000
                                                  -------  -------   -------   -------
   Revenues                                       $ 145.5  $ 134.8   $ 577.3   $ 572.2

   Costs and expenses                               110.7    114.2     463.9     458.3
   Depreciation and amortization                     14.4     13.7      58.0      56.1
                                                  -------  -------   -------   -------
   Operating income                                  20.4      6.9      55.4      57.8

   Equity in net earnings (losses) of
    unconsolidated affiliates:
     Grupo Transportacion Ferroviaria
      Mexicana, S.A. de C.V. (preliminary)            5.0      2.8      28.5      21.6
     Other                                           (1.2)    (1.1)     (1.4)      2.2
   Interest expense                                  (9.9)   (11.6)    (52.8)    (65.8)
   Other, net                                         1.2      1.2       4.2       6.0
                                                  -------  -------   -------   -------
   Income from continuing operations before
    income taxes, extraordinary items and
    cumulative effect of accounting change           15.5     (1.8)     33.9      21.8

   Income tax provision (benefit)                     4.4     (5.4)      2.8      (3.6)
                                                  -------  -------   -------   -------
   Income from continuing operations before
    extraordinary items and cumulative effect
    of accounting change                             11.1      3.6      31.1      25.4

   Extraordinary items, net of income taxes:
      Debt retirement costs                             -        -         -      (7.0)
      Debt retirement costs - TFM                       -        -         -      (1.7)

   Cumulative effect of accounting change, net
    of income taxes                                     -        -      (0.4)        -
                                                  -------  -------   -------   -------
   Income from continuing operations, net of
    extraordinary items and cumulative
    effect of accounting change                   $  11.1  $   3.6   $  30.7   $  16.7
                                                  =======  =======   =======   =======
  Per Share
   Data:

   Basic Weighted Average Common shares
    outstanding (in thousands)                     59,035   58,132    58,598    56,650

   Basic Earnings (Loss) per Common
    share from continuing operations              $  0.19  $  0.06   $  0.53   $  0.44
     Extraordinary items                               -        -         -      (0.15)
     Cumulative effect of accounting change            -        -      (0.01)       -
                                                  -------  -------   -------   -------
   Basic Earnings per Common share, net of
    extraordinary  items and cumulative effect
    of  accounting change                         $  0.19  $  0.06   $  0.52   $  0.29
                                                  =======  =======   =======   =======

   Diluted Weighted Average Common shares
    outstanding (in thousands)                     61,099   59,839    60,984     58,390

   Diluted Earnings (Loss) per Common share
    from continuing operations                    $  0.18  $  0.06   $  0.51   $  0.43

   Extraordinary items                                 -        -         -      (0.15)
   Cumulative effect of accounting change              -        -      (0.01)       -
                                                  -------  -------   -------   -------

   Diluted Earnings per Common
    share, net of extraordinary
    items and cumulative effect of
    accounting change                             $  0.18  $  0.06   $  0.50   $  0.28
                                                  =======  =======   =======   =======
(1) - Stilwell Financial Inc., the Company's formerly owned financial
         services segment
KANSAS CITY SOUTHERN INDUSTRIES, INC. and SUBSIDIARY COMPANIES
                   CONSOLIDATED CONDENSED STATEMENTS OF INCOME
                     (includes Discontinued Operations (1))
                  (dollars in millions, except per share data)
                                   (Unaudited)
Three Months         Year Ended
                                                 Ended December 31,  Ended December 31,
                                                 -----------------   -----------------
                                                    2001     2000      2001      2000
                                                  -------  -------   -------   -------

   Revenues                                       $ 145.5  $ 134.8   $ 577.3   $ 572.2

   Costs and expenses                               110.7    114.2     463.9     458.3
   Depreciation and amortization                     14.4     13.7      58.0      56.1
                                                  -------  -------   -------   -------

   Operating income                                  20.4      6.9      55.4      57.8

   Equity in net earnings (losses) of
    unconsolidated affiliates:
     Grupo Transportacion Ferroviaria
      Mexicana, S.A. de C.V.  (preliminary)           5.0      2.8      28.5      21.6
     Other                                           (1.2)    (1.1)     (1.4)      2.2
   Interest expense                                  (9.9)   (11.6)    (52.8)    (65.8)
   Other, net                                         1.2      1.2       4.2       6.0
                                                  -------  -------   -------   -------
   Income from continuing operations before
    income taxes, extraordinary items and
    cumulative effect of accounting change          15. 5     (1.8)     33.9      21.8

   Income tax provision (benefit)                     4.4     (5.4)      2.8      (3.6)
                                                  -------  -------   -------   -------
   Income from continuing operations before
    extraordinary items and cumulative effect
    of accounting change                             11.1      3.6      31.1      25.4
   Income from discontinued operations (1)
    (net of income taxes)                               -        -         -     363.8
                                                  -------  -------   -------   -------

   Income before extraordinary items and
    cumulative effect of accounting change           11.1      3.6      31.1     389.2
   Extraordinary items, net of income taxes:
      Debt retirement costs                             -        -         -      (7.0)
      Debt retirement costs - TFM                       -        -         -      (1.7)
   Cumulative effect of accounting change, net
    of income taxes                                     -        -      (0.4)        -
                                                  -------  -------   -------   -------
   Net income                                     $  11.1  $   3.6   $  30.7   $ 380.5
                                                  =======  =======   =======   =======
   Per Share Data:

   Basic Weighted Average Common shares
    outstanding (in thousands)                     59,035   58,132    58,598    56,650
   Basic Earnings per Common share
      Continuing operations                       $  0.19  $  0.06   $  0.53   $  0.44
      Discontinued operations                          -        -         -       6.42
                                                  -------  -------   -------   -------
   Basic Earnings (Loss) per Common share before
    extraordinary items and cumulative effect of
    accounting change                                0.19     0.06      0.53      6.86

   Extraordinary items                                 -        -         -      (0.15)
   Cumulative effect of accounting change              -        -      (0.01)       -
                                                  -------  -------   -------   -------
   Basic Earnings per Common share                $  0.19  $  0.06   $  0.52   $  6.71
                                                  -------  -------   -------   -------

   Diluted Weighted Average Common shares
    outstanding (in thousands)                     61,099   59,839    60,984    58,390

   Diluted Earnings per Common share
      Continuing operations                       $  0.18  $  0.06   $  0.51   $  0.43
      Discontinued operations                          -        -         -       6.14
                                                  -------  -------   -------   -------

   Diluted Earnings (Loss) per Common share before
    extraordinary items and cumulative effect of
    accounting change                                0.18     0.06      0.51      6.57

   Extraordinary items                                 -        -         -      (0.15)
   Cumulative effect of accounting change              -        -      (0.01)       -
                                                  -------  -------   -------   -------
   Diluted Earnings per Common share                 0.18     0.06      0.50      6.42

   (1) - Stilwell Financial Inc., the Company's formerly owned financial
         services segment
EXHIBIT 99.2
Kansas City Southern Railway*
Operating Statements
Dollars in Millions
Fourth Quarter Fourth Quarter     Twelve Months  Twelve Months
                                2001           2000               2001           2000
                            -------------  -------------      -------------  -------------
Revenues
    Freight Revenue             $    87.0      $    82.6          $   340.3      $   348.5
    Intermodal and Automotive
     Revenue                         15.1           15.7               66.0           62.1
    Unit Coal Revenue                31.0           22.2              115.8          103.6
    Haulage Revenue                   3.4            3.5               13.0           12.6
    Other Revenue                     6.9            8.3               31.3           36.3
                            -------------  -------------      -------------  -------------
      Total Revenues                143.4          132.3              566.4          563.1
                            -------------  -------------      -------------  -------------

Operating Expenses
    Salaries & Wages                 32.6           35.6              133.7          139.3
    Fringe Benefits                  13.6           11.3               54.0           52.6
    Fuel                              8.6           12.8               43.9           48.1
    Material and Supplies             5.4            6.9               27.5           30.5
    Car Hire                          4.1            3.7               19.8           14.8
    Purchased Services               10.7           12.0               47.7           47.9
    Casualties & Insurance           12.9            9.5               40.6           34.0
    Other                             2.7            2.9               10.3            9.0
                            -------------  -------------      -------------  -------------
      Net Operating Expenses         90.6           94.7              377.5          376.2
                            -------------  -------------      -------------  -------------

Fixed Expenses
    Leases, Net                      13.6           13.1               54.6           55.6
    Depreciation                     13.5           12.7               54.1           52.1
    Taxes (Other Than Income)         3.7            2.1               13.2           13.2
                            -------------  -------------      -------------  -------------
      Total Fixed Expenses           30.8           27.9              121.9          120.9
                            -------------  -------------      -------------  -------------
    Total Expenses                  121.4          122.6              499.4          497.1
                            -------------  -------------      -------------  -------------

Operating Income                $    22.0      $     9.7          $    67.0      $    66.0
*    Includes the operations of the Gateway Western Railway  Company.  Effective
     October 1, 2001,  Gateway  Western was merged into the Kansas City Southern
     Railway.
Kansas City Southern Railway*
Carloadings By Commodity - Year Ended December 31, 2001
Dollars in Thousands
Carloadings                                               Revenue

     Year to Date         %                                    Year to Date        %
----------------------                                    ---------------------
   2001         2000    Change                              2001        2000     Change
----------   ---------  -------                           ---------   ---------  -------

                                      Coal

  197,166     180,949    9.0%        Unit Coal            $115,825    $103,617    11.8%
    5,167       3,216   60.7%        Other Coal              2,923       1,343   117.6%
----------   ---------                                    ---------   ---------
  202,333     184,165    9.9%                Total         118,748     104,960    13.1%

                                  Chemical & Petroleum Products
    6,704       9,135  (26.6)%       Agri Chemicals          5,304       6,422   (17.4)%
   11,393      13,817  (17.5)%       Gases                  10,420      12,468   (16.4)%
   22,138      25,749  (14.0)%       Organic                22,554      24,345    (7.4)%
   19,419      16,976   14.4%        Inorganic              20,544      19,684     4.4%
   59,455      62,171   (4.4)%       Petroleum              38,037      38,239    (0.5)%
   26,892      26,276    2.3%        Plastics               26,904      24,416    10.2%
----------   ---------                                    ---------   ---------
  146,001     154,124   (5.3)%               Total         123,763     125,574    (1.4)%
----------   ---------                                    ---------   ---------

                                 Agriculture and  Minerals

   47,408      49,201   (3.6)%       Domestic Grain         32,789      36,488   (10.1)%
   13,309      11,060   20.3%        Export Grain            9,595       8,077    18.8%
   26,347      29,458  (10.6)%       Food Products          21,879      23,537    (7.0)%
   23,467      25,528   (8.1)%       Ores and Minerals      12,434      13,192    (5.7)%
   15,145      16,721   (9.4)%       Stone, Clay & Glass    11,220      12,311    (8.9)%
----------   ---------                                    ---------   ---------
  125,676     131,968   (4.8)%               Total          87,917      93,605    (6.1)%
----------   ---------                                    ---------   ---------

                                 Paper & Forest Products
   85,634      90,577   (5.5)%       Pulp/Paper             61,195      63,294    (3.3)%
    6,960       7,181   (3.1)%       Scrap Paper             3,812       3,898    (2.2)%
   36,184      33,675    7.5%        Pulpwood/Logchips      15,037      13,439    (2.2)%
   26,268      28,291   (7.2)%       Lumber/Plywood         23,109      24,879    (7.1)%
   19,857      25,100  (20.9)%       Metal/Scrap            15,315      18,847   (18.7)%
                                     Military/Other
    9,104       7,620   19.5%         Carloads              11,880       7,975    49.0%
----------   ---------                                    ---------   ---------
  184,007     192,444   (4.4)%               Total         130,348     132,332    (1.5)%
----------   ---------                                    ---------   ---------

                                  Intermodal & Automotive
   34,684      21,655   60.2%        Automotive             21,488      12,467    72.4%
  256,429     247,604    3.6%        Intermodal             44,488      49,621   (10.3)%
----------   ---------                                    ---------   ---------
  291,113     269,259    8.1%                Total          65,976      62,088   (10.3)%
----------   ---------                                    ---------   ---------
                                  TOTAL FOR BUSINESS
  949,130     931,960    1.8%      UNITS                   526,752     518,559     1.6%

   34,762      41,499  (16.2)%    Haulage                   13,043      12,565     3.8%

   (9,125)     (8,561)   6.6%     Adjustments               (4,609)     (4,369)    5.5%
----------   ---------                                    ---------   ---------

  974,767     964,898    1.0%                TOTAL        $535,186    $526,755     1.6%
==========   =========                                    =========   =========

*    Includes the  operations  of Gateway  Western  Railway  Company.  Effective
     October 1, 2001,  Gateway  Western  Railway was merged into the Kansas City
     Southern Railway.
Kansas City Southern Railway*
Carloadings By Commodity - Fourth Quarter 2001
Dollars in Thousands
Carloadings                                               Revenue

    Fourth Quarter         %                                 Fourth Quarter         %
----------------------                                    ---------------------
   2001        2000     Change                              2001        2000     Change
----------   ---------  -------                           ---------   ---------  -------
                                      Coal
   52,899      39,451   34.1%         Unit Coal           $ 30,989    $ 22,211    39.5%
    1,441         914   57.7%         Other Coal               803         477    68.3%
----------   ---------                                    ---------   ---------
   54,340      40,365   34.6%                Total          31,792      22,688    40.1%

                                   Chemical & Petroleum Products

    1,777       2,146  (17.2)%       Agri Chemicals          1,391       1,488    (6.5)%
    2,989       3,301   (9.5)%       Gases                   2,746       2,921    (6.0)%
    5,359       6,052  (11.5)%       Organic                 5,690       5,694    (0.1)%
    4,825       4,043   19.3%        Inorganic               5,171       4,607    12.2%
   13,573      14,599   (7.0)%       Petroleum               9,167       8,703     5.3%
    6,886       6,466    6.5%        Plastics                6,647       6,417     3.6%
----------   ---------                                    ---------   ---------
   35,409      36,607   (3.3)%               Total          30,812      29,830     3.3%
----------   ---------                                    ---------   ---------

                                   Agriculture and  Minerals

   11,599      10,993    5.5%         Domestic Grain         8,220       8,742    (6.0)%
    4,838       2,674   80.9%         Export Grain           4,000       2,165    84.8%
    6,581       7,194   (8.5)%        Food Products          5,619       5,906    (4.9)%
    5,516       5,510    0.1%         Ores and Minerals      2,864       3,136    (8.7)%
    3,666       3,796   (3.4)%        Stone, Clay &
                                       Glass                 2,738       2,800    (2.2)%
----------   ---------                                    ---------   ---------
   32,200      30,167    6.7%                Total          23,441      22,749     3.0%
----------   ---------                                    ---------   ---------

                                 Paper & Forest  Products

   22,386      21,603    3.6%         Pulp/Paper            16,530      15,227     8.6%
    1,882       1,938   (2.9)%        Scrap Paper            1,072       1,052     1.9%
    9,238       7,637   21.0%         Pulpwood/Logs/Chips    3,852       3,103    24.1%
    6,301       6,603   (4.6)%        Lumber/Plywood         5,745       5,787    (0.7)%
    3,571       5,581  (36.0)%        Metal/Scrap            2,654       4,288   (38.1)%
    2,246       1,660   35.3%         Military/Other
                                       carloads              3,188       1,793    77.8%
----------   ---------                                    ---------   ---------
   45,624      45,022    1.3%                Total          33,041      31,250     5.7%
----------   ---------                                    ---------   ---------

                                  Intermodal & Automotive

    6,042       6,668   (9.4)%        Automotive             3,745       3,696     1.3%
   64,387      67,926   (5.2)%        Intermodal            11,351      12,004    (5.4)%
----------   ---------                                    ---------   ---------
   70,429      74,594   (5.6)%               Total          15,096      15,700    (3.8)%
----------   ---------                                    ---------   ---------
                                   TOTAL FOR BUSINESS
  238,002     226,755    5.0%         UNITS                134,182     122,217     9.8%

    9,197       8,863    3.8%      Haulage                   3,399       3,544    (4.1)%

   (2,097)     (2,721)  (22.9)%    Adjustments              (1,130)     (1,704)  (33.7)%
----------   ---------                                    ---------   ---------

  245,102     232,897    5.2%                TOTAL        $136,451    $124,057    10.0%
==========   =========                                    =========   =========
*    Includes the  operations  of Gateway  Western  Railway  Company.  Effective
     October 1, 2001,  Gateway  Western  Railway was merged into the Kansas City
     Southern Railway.
Kansas City Southern Industries, Inc.
Consolidated Balance Sheets
Unaudited
(Dollars in Millions)
December 31,               December 31,
                                                   2001                       2000
                                             ----------------           ----------------
Assets
  Cash                                           $       24.7               $       21.5
  Accounts receivable                                   130.0                      135.0
  Inventories                                            27.9                       34.0
  Other current assets                                   44.2                       25.9
                                             ----------------           ----------------
     Total current assets                               226.8                      216.4

  Investments held for operating purposes               386.8                      358.2
  Properties, net of depreciation                     1,327.4                    1,327.8
  Other assets                                           42.3                       42.1
                                             ----------------           ----------------

      Total assets                               $    1,983.3               $    1,944.5
                                             ================           ================

Liabilities and Stockholders' Equity

  Current portion of long-term debt              $       46.7               $       36.2
  Accounts payable                                       50.4                       52.9
  Accrued liabilities                                   132.8                      159.9
                                             ----------------           ----------------
     Total current liabilities                          229.9                      249.0

  Long-term debt                                        611.7                      638.4
  Deferred income taxes                                 370.2                      332.2
  Other                                                  91.2                       81.5
  Stockholders' equity                                  680.3                      643.4
                                             ----------------           ----------------
   Total liabilities and stockholders'
     equity                                      $    1,983.3               $    1,944.5
                                             ================           ================
KANSAS CITY SOUTHERN INDUSTRIES, INC.
                               STATEMENT OF CASH FLOWS
                           YEAR TO DATE - DECEMBER 31, 2001
                                    (in thousands)
                                     (Unaudited)

              CASH FLOWS PROVIDED BY (USED FOR):
              OPERATING ACTIVITIES:

               Net income                                               $30,739
               Adjustments to net income:
                   Depreciation and amortization                         58,093
                   Deferred income taxes                                 31,660
                   Equity in undistributed earnings                     (27,075)
                   Distributions from unconsolidated                      3,000
                   Gain on Sale of Property                              (5,774)
                   Gain on Sale of Investments                               82
               Tax Benefit Associated with Exercised Stock Options        5,583
               Changes in working capital items:
                   Accounts receivable                                    3,997
                   Inventories                                            6,182
                   Other current assets                                   7,998
                   Accounts payable                                      (5,097)
                   Accrued liabilities                                  (47,926)
               Other, net                                                14,603
                                                                  -------------

                  Net from operations                                    76,066
                                                                  -------------

              INVESTING ACTIVITIES:
               Property acquisitions                                    (66,001)
               Proceeds from disposals of property                       18,133
               Investments in and Loans to affiliates                    (8,168)
               Proceeds from disposal of investments                        634
               Other, net                                                  (306)
                                                                  -------------
                  Net from investing                                    (55,707)
                                                                  -------------

              FINANCING ACTIVITIES:
               Proceeds from issuance of long-term debt                  35,000
               Repayment of long-term debt                              (51,287)
               Debt issue and recapitalization costs                       (389)
               Proceeds from stock plans                                  8,898
               Cash dividends paid                                         (242)
               Other, net                                                (9,155)
                                                                  -------------
                 Net from financing                                     (17,175)
                                                                  -------------

             CASH AND EQUIVALENTS:
               Net increase                                               3,184
               At beginning of year                                      21,536
                                                                  -------------
               At end of period                                         $24,720
                                                                  -------------