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Rail News: Financials

2Q Financials: Global Railway increases revenue


Yesterday, Global Railway Industries Ltd. reported second-quarter financial results, posting increased revenue while the company continues to restructure rail car component supplier YSD Industries, which Global purchased out of bankruptcy in April.

Excluding YSD operations, Global generated $8.7 million in revenue, and recorded net earnings of $1.1 million and earnings per share of eight cents for the three-month period ending June 30.

"Given the general strength in the railway industry, we have strong order backlogs in all our main product lines," said Global President and Chief Executive Officer Mike Kohut in a prepared statement.

For the quarter, Global’s consolidated revenues increased 42 percent to $10 million compared with $7.1 million for the same 2003 period and consolidated net earnings decreased two percent to $770,959 compared with $786,762 for the same 2003 period.

For the six-month period ending June 30, Global’s consolidated revenue increased 6 percent to $18.1 million compared with $11.3 million for the same 2003 period and consolidated net earnings increased 69 percent to $1.8 million compared with net earnings of $1.1 million for the same 2003 period.

Since the acquisition, YSD has generated about $1.3 million in revenue and reported an after-tax loss of about $361,000. As a result, Global’s earnings per share was reduced by three cents during the quarter.

Global officials expect to complete the YSD restructuring by year end; YSD then will be able to capitalize on the strong new rail car market, Global officials believe.

Contact Progressive Railroading editorial staff.

More News from 8/13/2004