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Rail News: Financials

Global Railway's revenue rises, earnings fall in first quarter

Yesterday, Global Railway Industries Ltd. reported first-quarter revenue of $10.8 million, a 34 percent increase compared with first-quarter 2004.

Company officials attribute the increase to the inclusion of revenue generated by YSD Industries Inc. — a rail-car door, side and roof supplier Global Railway acquired in April 2004 — which helped offset revenue decreases at subsidiaries Prime Railway Services and Rafna Industries Ltd.

However, Global Railway’s quarterly net earnings and earnings per share dropped more than 100 percent to $480,000 and three cents, respectively, compared with first-quarter 2004.

“Net earnings decreased … due to losses incurred by YSD, as well from the reduction in net income from our Prime and Rafna subsidiaries,” said Global Railway Chief Executive Officer Mike Kohut in a prepared statement. “[Our] largest subsidiary, G&B Specialties Inc., has experienced significant increases in spending in its product market, [but] is on track to deliver significant growth in profitability in 2005.”

Through subsidiaries Bach-Simpson Corp., G&B Specialties, Prime Railway, Rafna and YSD, Global Railway offers event recorder monitoring/control systems, train speedometers, track and signal components, rail-car doors and replacement parts, and railgear.

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More News from 5/10/2005