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Rail News Home Financials

10/31/2005



Rail News: Financials

RailAmerica's earnings go up, but so do expenses


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Today, RailAmerica Inc. reported third-quarter earnings from continuing operations of $7.7 million compared with a $30.6 million loss in third-quarter 2004. Consolidated revenue from continuing operations increased 12.5 percent to $112.5 million.

However, consolidated operating income fell 17 percent to $13.3 million, total operating expenses rose 3 percent to $99.2 million and the company’s operating ratio worsened 4.2 points to 88.2 compared with third-quarter 2004. Excluding the costs associated with a tank car incident in Cincinnati and $1.1 million rise in fuel expenses during the quarter, RailAmerica’s operating ratio would have been 85.2, officials said in a prepared statement.

“While we are pleased by our revenue growth in the third quarter, the tank car incident, higher than forecasted fuel prices, Class I congestion and continued losses in our Ohio operation contributed to higher than expected expenses,” said RailAmerica Chief Executive Officer Charles Swinburn.

During 2005’s first nine months, RailAmerica registered earnings from continuing operations of $22.9 million compared with a $25.9 million loss during the same 2004 period. Consolidated revenue from continuing operations rose 14.2 percent to $333.4 million, consolidated operating income increased 33 percent to $39.9 million and the company’s operating ratio improved 1.8 points to 88.

RailAmerica owns and operates 47 regionals and short lines in the United States and Canada.


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