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):
JULY 11, 2003
KANSAS CITY SOUTHERN
(Exact name of company as specified in its charter)
DELAWARE 1-4717 44-0663509
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(State or other jurisdiction (Commission file (IRS Employer
of incorporation) Identification Number)
427 WEST 12TH STREET, KANSAS CITY, MISSOURI 64105
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(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 5. OTHER EVENTS
On July 11, 2003, Grupo TMM, S.A. ("Grupo TMM") and Kansas City Southern
("KCS"), owners through Grupo Transportacion Ferroviaria Mexicana, S.A. de C.V.
("Grupo TFM") of the controlling interest in TFM, S.A. de C.V. ("TFM") announced
that on July 9, 2003, TFM was formally notified by a three-judge panel of the
Court of the First Circuit ("Circuit Court") of its June 11, 2003 judgment,
which granted TFM constitutional protection ("Amparo") against the ruling of the
Federal Tribunal of Fiscal and Administrative Justice ("Fiscal Court") issued on
December 6, 2002, which had denied TFM the right to receive the Value Added Tax
("VAT") refund. See the Press Release attached hereto as Exhibit 99.1 for
additional information. Note that certain references to "the Company" in the
"forward-looking statements" paragraph at the end of the press release refer
solely to Grupo TMM.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
EXHIBIT NO. DOCUMENT
(99) Additional Exhibits
99.1 Press Release issued by Kansas City Southern and Grupo
TMM dated July 11, 2003 entitled, "Grupo TMM, S.A. and
Kansas City Southern Provide Additional Information
Regarding the Recent Judgment on the TFM VAT Claim"
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Company
has duly caused this Report to be signed on its behalf by the undersigned
hereunto duly authorized.
Kansas City Southern
Date: July 14, 2003 By: /S/ LOUIS G. VAN HORN
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Louis G. Van Horn
Vice President and Comptroller
(Principal Accounting Officer)
EXHIBIT 99.1
GRUPO TMM COMPANY CONTACT: AT DRESNER CORPORATE SERVICES:
Jacinto Marina, Chief Financial Officer Kristine Walczak (general
(JACINTO.MARINA@TMM.COM.MX) investors, analysts and media)
011-525-55-629-8790 (kwalczak@dresnerco.com)
312-726-3600
Brad Skinner, Senior Vice President AT PROA STRUCTURA:
Investor Relations Marco Provencio
011-525-55-629-8725 011-525-55-629-8758
(brad.skinner@tmm.com.mx) (mp@proa.structura.com.mx)
KANSAS CITY SOUTHERN COMPANY CONTACT:
William H. Galligan
(william.h.galligan@kcsr.com)
816-983-1551
GRUPO TMM, S.A. AND KANSAS CITY SOUTHERN
PROVIDE ADDITIONAL INFORMATION REGARDING
THE RECENT JUDGMENT ON THE TFM VAT CLAIM
(MEXICO CITY, JULY 11, 2003) - GRUPO TMM, S.A. (NYSE: TMM AND BMV: TMM
A; "TMM") AND KANSAS CITY SOUTHERN (NYSE: KSU; "KCS"), owners of the
controlling interest in TFM, S.A. de C.V. ("TFM"), announced today that
on July 9, 2003, TFM was formally notified by a three-judge panel of the
Court of the First Circuit ("Circuit Court") of its June 11, 2003
judgment, which granted TFM constitutional protection ("Amparo") against
the ruling of the Federal Tribunal of Fiscal and Administrative Justice
("Fiscal Court") issued on December 6, 2002, which had denied TFM the
right to receive the Value Added Tax (VAT) refund. TFM initiated its
claim for the VAT refund in 1997.
The Circuit Court's judgment ordered the Fiscal Court to vacate its
December 6, 2002 resolution, and to issue a new resolution following the
guidelines of the Circuit Court's judgment. The Circuit Court found that
the VAT refund certificate had not been delivered to TFM, and confirmed
the Fiscal Court's determination that TFM has the right to receive the
VAT refund certificate. The Circuit Court's ruling states that the
Treasury's decision denying delivery of the VAT refund certificate to
TFM violated the law, and it instructs that the VAT reimbursement
certificate be issued to TFM on the terms established by Article 22 of
the Federal Fiscal Code in effect at that time.
As a result of this ruling, the case has been remanded to the Fiscal
Court, and TFM believes that the guidelines contained in the Circuit
Court's decision are clear. However, TFM cannot be certain of the final
terms of the new resolution to be issued by the Fiscal Court. In
addition, a third party claim or legal action could be brought against
TFM as a consequence of the new ruling to be issued by the Fiscal Court
in compliance with the judgment of the Circuit Court. Should such an
action or claim be brought against TFM, TFM believes it would have
sufficient legal defenses. As of today, it is not possible to
determine when the Fiscal Court will issue its new ruling, nor when TFM
is likely to receive the VAT refund.
Headquartered in Mexico City, Grupo TMM is a Latin America's multimodal
transportation company. Through its branch offices and network of
subsidiary companies, Grupo TMM provides a dynamic combination of ocean
and land transportation services. Grupo TMM also has a significant
interest in TFM, which operates Mexico's Northeast railway and carries
over 40 percent of the country's rail cargo. Grupo TMM's web site
address is www.grupotmm.com and TFM's web site is www.tfm.com.mx.
KCS is a transportation holding company that has railroad investments in
the United States, Mexico, and Panama. Its primary holding is KCSR.
KCS's rail holdings and investments are primary components of a NAFTA
Railway system that links the commercial and industrial centers of the
United States, Canada and Mexico. KCS is headquartered in Kansas City,
Missouri.
Included in this press release are certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Such forward-looking statements are based on the beliefs of the
Company's management as well as on assumptions made. Actual results
could differ materially from those included in such forward-looking
statements. Readers are cautioned that all forward-looking statements
involve risks and uncertainty. The following factors could cause actual
results to differ materially from such forward-looking statements:
global, US and Mexican economic and social conditions; the effect of the
North American Free Trade Agreement on the level of US-Mexico trade; the
condition of the world shipping market; the success of the Company's
investment in TFM, S.A. de C.V. and other new businesses; risks
associated with the Company's reorganization and asset sale programs;
the ability of the Company to reduce corporate overhead costs; the
ability of management to manage growth and successfully compete in new
businesses, and the ability of the Company to repay, restructure or
refinance its indebtedness. These risk factors and additional
information are included in the Company's reports on Form 6-K and 20-F
on file with the Securities and Exchange Commission.
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