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Rail News Home Financials

10/22/2003



Rail News: Financials

Florida East Coast Railway posts quarterly revenue, profit increases


On Oct. 22, Florida East Coast Industries Inc. (FECI) reported third-quarter revenue of $87.1 million and consolidated net income of $1 million compared with $58.2 million and a net loss of $147.4 million, respectively, in third-quarter 2002.

Florida East Coast Railway's (FECR) quarterly revenue increased 11.9 percent to $44.7 million compared with the same 2002 period. Carload revenue rose 6.8 percent primarily because of a 17.6 percent increase in aggregate revenue driven by strong construction demand and new business from existing customers. However, automotive revenue declined 19.8 percent.

FECR's operating profit increased to $10.8 million compared with $9.7 million in third-quarter 2002, but the 351-mile regional's quarterly operating ratio of 75.9 worsened 0.3 points because lower-margin drayage operations have been managed by the railroad since FECI discontinued its trucking division in late 2002.

"In the third quarter, our railway and realty businesses continued to show gradual improvement," said Robert Anestis, FECI chairman, president and chief executive officer in a prepared statement. "Railway revenues increased over the prior year quarter for the eighth consecutive quarter, and operating profit before depreciation increased."

FECI raised its 2003 expectations for FECR, now predicting annual revenue of about $180 million and an operating profit comparable with 2002. FECI expects the railroad's annual capital expenditures to range between $26 million and $28 million.



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