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Rail News Home Financials

8/10/2004



Rail News: Financials

Florida East Coast Railway carries quarterly revenue load for parent company, lowers operating ratio



During the second quarter, Florida East Coast Railway (FECR) increased operating revenue 11 percent to $50.1 million, but parent Florida East Coast Industries Inc.'s (FECI) quarterly revenue fell 2.6 percent to $70.5 million compared with last year because of fewer real estate sales.

It was another banner quarter for the 351-mile railroad, which increased operating profit 13 percent to $12.7 million, boosted total carload revenue 4.9 percent to $28.2 million and lowered its operating ratio 0.5 points to 74.7, compared with second-quarter 2003. FECR's quarterly aggregate and intermodal revenue rose 13.6 percent and 20 percent, respectively.

"Intermodal revenue [was] driven by an improved economy, new leadership, improved pricing and the expansion of [the railroad's] reach … by partnering with a Class I to move loads on to South Florida," said FECI Chairman, President and Chief Executive Officer Robert Anestis in a prepared statement. "Given the performance of the railway's intermodal franchise during the first half of the year and continued strong momentum in the business, we are increasing the 2004 full year outlook for the railway's revenue and operating profit growth to high single- to low-double-digit percentage improvement over 2003."

During the year's first six months, FECR increased operating revenue and operating profit 10 percent to $98.7 million and 19 percent to $23.8 million, respectively, and improved its operating ratio 1.7 points to 75.9, compared with a similar 2003 period. However, operating expenses rose 7.8 percent to $74.9 million, primarily because of higher fuel costs.


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