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Rail News: Financials

Florida East Coast Railway's profits, revenue rise in third quarter


With an assist from higher rates and fuel surcharges, Florida East Coast Railway L.L.C.’s (FECR) third-quarter revenue rose 6 percent to $63.4 million compared with similar 2005 data. Monies collected from fuel surcharges increased $2.8 million to $6.3 million.

Total carload revenue rose 3.3 percent primarily because of year-over-year rate increases, which offset a volume decrease of 5.1 percent, FECR said. Intermodal revenue increased 9 percent — the 13th-straight quarterly gain. Aggregate revenue went up 2.4 percent but volume fell 3.7 percent; vehicle revenue and volume decreased 3.7 percent and 16.7 percent, respectively, compared with similar 2005 data.

Meanwhile, the 351-mile regional’s third-quarter operating profit rose 33.7 percent to $22.1 million and operating ratio improved 7.2 points to 65.2.

“Operating profit increased primarily due to the receipt of insurance proceeds net of hurricane related expenses related to the 2005 hurricane season,” said Adolfo Henriques, chairman, president and chief executive officer of FECR parent Florida East Coast Industries Inc., in a prepared statement. “To reflect year-to-date hurricane recoveries, net of costs, we have raised our operating profit outlook for the year. However, we expect growth to remain at more moderate levels for the remainder of the year and into 2007.”

For the full year, FECR officials expect operating profit to range between $79 million and $81 million, revenue to range between $265 million and $275 million, and capital expenditures to range between $42 million and $47 million.