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Rail News: Financials

Providence and Worcester registers more revenue, less income

Healthy coal, steel ingot, ethanol and automotive traffic helped drive up Providence and Worcester Railroad Co.'s (PWRR) revenue in the second quarter.

The 545-mile regional reported operating revenue of $8.1 million, a 16.1 increase compared with second-quarter 2007's total. Conventional freight revenue jumped 23.9 percent, helping to offset a 45.9 percent decline in container freight revenue. Container volume has continued to dwindle since mid-2007, the railroad said.

The regional also reported net income of $320,000 vs. $347,000 in second-quarter 2007. The railroad registered traffic decreases in construction aggregates, chemicals, building products and other commodities affected by the economic slow-down, PWRR officials said in a prepared statement.

Fuel costs increased by $618,000 (a 103.5 percent jump) — the primary reason operating expenses increased 13 percent year over year to $7.8 million.

During the first half, operating revenue rose 16 percent to $14.1 million and PWRR incurred a net loss of $602,000 vs. first-half 2007's net loss of $814,000.

Formed in 1973, PWRR operates lines in Massachusetts, Rhode Island, Connecticut and New York, and operates two intermodal yards in Worcester, Mass.

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More News from 8/14/2008