Media Kit » Try RailPrime™ Today! »
Progressive Railroading
Newsletter Sign Up
Stay updated on news, articles and information for the rail industry



This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.




railPrime
View Current Digital Issue »


RAIL EMPLOYMENT & NOTICES



Rail News Home Financials

1/21/2005



Rail News: Financials

2005 Outlook: RailAmerica expects 10 percent rise in revenue, 2 percent climb in carloads


advertisement


RailAmerica Inc. is projecting promising revenue growth this year, in the more-than-5-percent category. Yesterday, the short-line holding company announced its 2005 business outlook, which forecasts annual revenue totaling about $435 million or 10 percent more than 2004 revenue.

Same railroad revenue is projected to rise about 7 percent — including fuel surcharge revenue totaling about $6 million — and same railroad carloads are expected to increase about 2 percent compared with 2004. The Central Michigan Railway, Chicago, Fort Wayne & Eastern Railroad, and Midland Subdivision — which RailAmerica acquired last year — will help drive carload and revenue growth, company officials said in a prepared statement.

RailAmerica also is forecasting annual operating income of about $70 million, capital expenditures of about $58 million and an annual operating ratio of between 84 and 85. The company is projecting a first-quarter operating ratio of between 87 and 88.

RailAmerica has hedged 30 percent of its 2005 fuel usage at an average price of $1.45 per gallon. In addition, fuel surcharges are expected to cover another 30 percent of the company's fuel costs in 2005.