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Rail News Home Financials

11/14/2008



Rail News: Financials

Providence and Worcester boosts income, revenue


In the third quarter, Providence and Worcester Railroad Co.’s (PWRR) net income nearly tripled third-quarter 2007’s total, increasing from $181,000 to $534,000.

Operating revenue rose 11.5 percent to $8.1 million primarily because a 14.9 percent increase in conventional freight revenue helped offset a 34.9 percent decline in container revenue. Diluted income per common share increased from four cents to 11 cents.

Shipments of ethanol and automobiles — commodities the 545-mile regional began handling in the second half — posted increases, as did coal and steel ingot traffic. Those traffic gains helped offset decreases in shipments of construction aggregates, chemicals, building products and other commodities. In addition, container volume has continued to decrease since mid-2007.

Meanwhile, diesel costs jumped 72.8 percent, the main reason PWRR’s third-quarter operating expenses increased 11 percent to $8 million compared with third-quarter 2007’s total.

For 2008’s first nine months, PWRR reported a net loss of $68,000 vs. a $633,000 net loss in the same 2007 period. Operating revenue rose 14 percent to $22.2 million and operating expenses increased 10 percent to $23.3 million.

Formed in 1973, PWRR operates lines in Connecticut, Massachusetts, New York and Rhode Island.


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