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Rail News: Financials

RailAmerica registers revenue, income gains despite traffic losses in third quarter


During the third quarter, RailAmerica Inc.’s revenue increased 12 percent to $117.3 million and operating income rose 7 percent to $13.5 million compared with similar 2005 data.

However, the short-line holding company’s quarterly net income of $6.9 million fell 10 percent, earnings from continuing operations of $7 million dropped 8 percent and operating ratio of 88.5 worsened 0.7 points. In addition, “same railroad” carloads — which exclude carloads associated with railroads or portions of railroads sold or acquired after Jan. 1, 2005 — decreased 2 percent compared with third-quarter 2005.

“Despite declines in our carloads, caused in significant part by the slowdown in the housing market — which resulted in a 12 percent decline in our lumber carloads — and the continued work stoppage at a paper facility in Nova Scotia … we continued to improve our operating results,” said RailAmerica Chief Executive Officer Charles Swinburn in a prepared statement.

During 2006’s first nine months, the company’s revenue totaled $348.5 million, up 13 percent compared with similar 2005 data. But operating income fell slightly to $36.9 million and RailAmerica’s operating ratio worsened 1.4 points to 89.4.

RailAmerica owns 42 regionals and short lines in the United States and Canada.

Contact Progressive Railroading editorial staff.

More News from 10/31/2006