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Rail-car leasing revenue up slightly for The Andersons

Revenue and operating income figures look pretty much like they did a year ago for The Andersons Inc.'s rail-car leasing subsidiary.

For the quarter, The Andersons Rail Group posted income of $300,000 on revenues of $4.4 million, compared with income of $400,000 on revenues of $4.2 million during the same 2002 period.

"Although the group benefited from a short-term car leasing opportunity early last year which was not repeated in the first quarter of 2003, this year-to-year decline was mostly offset by sales growth from a new line of rail-car discharge gates," according to a prepared statement.

Meanwhile, the rail group continued to acquire rail cars during the quarter and now controls a fleet of more than 5,700 rail cars and 51 locomotives. In March, Railcar Ltd. agreed to sell 7,000 rail cars and 48 locomotives to an Andersons-controlled limited liability corporation. Under the deal, Andersons Rail Group would manage the assets — most of which are under lease — for a fee. Subject to customary closing conditions, the transaction would triple the number of cars under the rail group's management.

Corporate-wide, The Andersons reported first quarter net income of $400,000, compared with $1.6 million during the same 2002 period. The company posted total revenues of $237.9 million, an 11 percent increase compared with the same period a year ago.

Contact Progressive Railroading editorial staff.

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