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Rail News: Financials

Florida East Coast Railway helps color parent company's financial ledger black

On Feb. 11, Florida East Coast Industries Inc. (FECI) reported fourth-quarter consolidated revenue of $103.7 million and income from continuing operations of $25.2 million, an 18 percent and 30 percent drop, respectively, compared with the same 2002 period.

However, subsidiary Florida East Coast Railway's (FECR) quarterly revenue increased 6 percent to $46.8 million, operating profit increased 3.2 percent to $12.2 million and total carload revenue rose 2.2 percent compared with fourth-quarter 2002. The 351-mile regional's quarterly operating ratio of 74 worsened 0.7 points because of lower margin drayage operations.

"Railway freight revenues, operating profit and operating profit before depreciation all increased compared to fourth-quarter 2002," said FECI Chairman, President and Chief Executive Officer Robert Anestis in a prepared statement.

For full-year 2003, FECI reported consolidated revenue of $339 million, a 12.6 percent increase compared with 2002. The company also earned net income of $43.2 million compared with a $107.8 million loss in 2002. But income from continuing operations of $41.4 million dropped 21 percent.

FECR's 2003 freight revenue increased 3 percent to $167.1 million, operating profit rose 2 percent to $43 million and operating profit before depreciation increased 5 percent to $62.6 million compared with 2002. But the regional's annual operating ratio of 76.3 worsened 1.6 points.

"In 2004, the railway should benefit from Florida's growth through the transport of aggregate and other commodities, and from recent improvements in its intermodal franchise," said Anestis.

This year, FECI officials expect FECR to grow revenue and operating profit in the low single digits compared with 2003, and spend between $30 million and $33 million on its capital plan.

Contact Progressive Railroading editorial staff.

More News from 2/11/2004