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Rail News Home Financials

2/16/2006



Rail News: Financials

RailAmerica increases revenue, reduces operating ratio in the fourth quarter



During the fourth quarter, RailAmerica Inc. more than doubled income from continuing operations to $9.4 million compared with fourth-quarter 2004.

Consolidated revenue from continuing operations of $112.1 million rose 15.7 percent while “same railroad” revenue of $105.7 million increased 9.1 percent. In addition, quarterly consolidated operating income of $14 million rose 18 percent and RailAmerica’s operating ratio of 87.5 improved 0.2 points compared with the same 2004 period.

“These results included our recently acquired Alcoa railroads, whose performance exceeded our initial expectations,” said RailAmerica Chief Executive Officer Charles Swinburn in a prepared statement. “Fourth quarter casualty and insurance expenses declined to 5 percent of revenue from 6.3 percent in the same 2004 quarter.”

During the full year, revenue from continuing operations of $423.7 million increased 14.7 percent compared with 2004. The company earned income from continuing operations of $30.8 million compared with a $23.1 million loss and net income of $30.8 million compared a $25.9 million loss in 2004. However, RailAmerica’s 2005 operating ratio of 87.9 worsened 3.6 points primarily because of various 2004 adjustments, including charges associated with the former CEO’s retirement and impairment of the E&N Railway.

RailAmerica owns and operates 43 regionals and short lines in the United States and Canada.


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