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8/18/2006



Rail News: Rail Industry Trends

Tie purchases and production plummet in July, RTA says



Crosstie purchases and production continued to drop in July after a June swoon. Purchases totaling 1.6 million units decreased about 26 percent and production totaling 1.6 million ties declined about 19 percent compared with June, according to the Railway Tie Association’s (RTA) monthly market report.

In June, tie purchases fell 21 percent and production tumbled 18 percent compared with May.

“June and July bring the first pause in this year’s torrid growth,” RTA said. “[And] July’s numbers appear to lie below seasonal norms.”

However, the inventory-to-sales ratio edged up from 0.75 in June to 0.76 in July.

During 2006’s first seven months, tie purchases totaled 13.2 million units, up 16 percent, and production totaled 13.3 million units, up 29 percent compared with the same 2005 period.

Twelve-month rolling totals show purchases held steady at 20.6 million units, but increased 11 percent compared with the previous 12-month period. Production reached 22.2 million units, up 23 percent.


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