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Rail News: Financials

Revenue, profits roll in for Florida East Coast Railway in quarter No. 2

Similar to the Class Is, Florida East Coast Railway L.L.C. (FECR) drove up revenue and drove down its operating ratio in the second quarter. The 351-mile regional’s revenue rose 19 percent to $70 million and ratio improved 1.8 points to 71.2 compared with the same 2005 period.

Intermodal revenue rose 23.5 percent, carload revenue increased 14.2 percent and FECR generated $6.3 million in revenue from fuel surcharges, up $3.7 million compared with second-quarter 2005.

“The railway’s revenues continue to benefit from increased volume and improved pricing,” said Adolfo Henriques, chairman, president and chief executive officer of FECR parent Florida East Coast Industries Inc., in a prepared statement.

Also during the quarter, FECR’s operating profit increased 27 percent to $20.2 million compared with the same 2005 period. A $2.8 million increase in fuel expenses was offset by higher fuel surcharges and a forward purchasing program for diesel.

For all of 2006, FECR officials project revenue to increase between 11 percent and 16 percent to a range of $265 million to $275 million, and operating profit to rise between 16 percent and 21 percent to a range of $74 million to $77 million. Capital expenditures will range between $48 million and $53 million. By year’s end, the railroad plans to purchase four new locomotives and build an 11-mile siding between Indian River and Frontenac, Fla.

Contact Progressive Railroading editorial staff.

More News from 8/3/2006