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Rail News: Financials

Florida East Coast posts quarterly revenue and income gains, lowers operating ratio

Yesterday, Florida East Coast Industries (FECI) released banner first-quarter financial results for its 351-mile regional subsidiary Florida East Coast Railway L.L.C.

Quarterly revenue of $56.5 million and operating profit of $15 million increased 16 percent and 35 percent, respectively, compared with first-quarter 2004. In addition, the railroad’s quarterly operating ratio improved 3.6 points to 73.5. The lone sore spot: Quarterly railway expenses rose 11 percent to $41.5 million.

“Overall growth in Florida remains strong and we continue to see additional demand for transportation benefiting from Florida's population growth as well as hurricane rebuilding efforts,” said FECI Chairman, President and Chief Executive Officer Adolfo Henrique in a prepared statement. “The momentum in the railway's first-quarter revenues and operating profit was better than expected and, as a result, we are increasing our full-year outlook."

The company now expects annual railway revenue to range between $216 million and $223 million, which would increase between 8 percent and 11 percent compared with 2004. Railway operating profit is projected to range between $54 million and $56 million, a 14 percent to 18 percent increase, and expenses are expected to remain between $32 and $36 million.

On a whole-company basis, FECI’s consolidated first-quarter revenue of $82.9 million rose 16 percent compared with first-quarter 2004. Quarterly income from continuing operations of $8.1 million increased 38 percent, but net income of $8.1 million fell slightly.

Contact Progressive Railroading editorial staff.

More News from 4/22/2005