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Rail News: Financials

RailPower boosts second-quarter revenue, production


Yesterday, RailPower Technologies Corp. reported second-quarter 2005 financial results that reflect some growing pains.

The Green Goat® hybrid locomotive producer increased revenue to $3.62 million compared with first quarter’s $0.25 million. Expenses rose to $4.91 million compared with $4.73 million during the first quarter. In addition, RailPower posted a loss of $5.73 million compared with first-quarter 2005’s $4.45 million.

"Our loss … reflects the loss made on our initial commercial sales, which is typical for a manufacturing company in its early years, with three new product lines going to market in short time frames," said RailPower President and Chief Executive Officer Jim Maier in a prepared statement.

However, the company doubled locomotive production to eight units, and obtained orders from Union Pacific Railroad for 10 locomotives and BNSF Railway Co. for five.

"Despite the longer-than-anticipated learning curve associated with our move into production earlier this year, we are now starting to ramp up production and improve efficiencies," said Maier.

In addition, last month, RailPower signed assembly and supply agreements with Super Super Steel Products Corp. and Super Steel Schenectady Inc. Super Steel will assemble RailPower’s hybrid Green Goat® locomotive at a Schenectady, N.Y., facility.

"This will allow us considerable flexibility for future production in 2006 and beyond," said Maier.

Contact Progressive Railroading editorial staff.

More News from 8/12/2005