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Rail News: Financials

Strong Canadian dollar and YSD plant closing drag down Global Railway's 2005 revenue, earnings

Last year, Global Railway Industries Ltd. generated revenue of $29.9 million, about a 1 percent decrease compared with 2004 primarily because of the strengthening Canadian dollar vs. the U.S. dollar.

Annual operating income of $3.2 million fell 39 percent and the company posted a $3.7 million net loss. Global Railway reported a $1 million one-time plant closure charge related to merging Rafna Industries Ltd. into G&B Specialties Inc.’s operations and discontinued operation costs tied to closing YSD Industries (2004) Inc. in October.

“Our decision to close YSD in 2005 had a profound impact on Global’s overall operating results,” said Global railway President and Chief Executive Officer Terry McManaman in a prepared statement. “During the next three to six months, we will focus on improving the bottom line performance of our continuing operations through revenue growth, expense reduction and capitalizing on synergies between subsidiaries.”

In the fourth quarter, the company generated revenue of $7.1 million, a 22 percent increase compared with the same 2004 period. Quarterly operating income of $300,000 rose 200 percent compared with fourth-quarter 2004 income of $100,000.

Through subsidiaries Rafna, G&B Specialties, Bach-Simpson Corp. and Prime Railway Services, Global Railway supplies event recorder monitoring/control systems, train speedometers, track and signal components, and rail gear.

Contact Progressive Railroading editorial staff.

More News from 3/28/2006