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Rail News: Railroading Supplier Spotlight

Updates from Spectrum Infrared, AECOM, RailComm, Trinity Industries, Wabtec and CIT Rail


• Spectrum Infrared, a division of Advanced Detection Systems Inc., announced that Union Pacific Railroad has procured the Spectrum RRSH Track Switch Heating Systems to install at two New Mexico locations. UP chose the RRSH-300 series to run ancillary equipment directly from an integrated control panel, according to Spectrum. The units operate two crib heaters, have a stagger start and two-stage energy management system, Spectrum officials said in a prepared statement.

• An AECOM Technology Corp.-led consortium has obtained a contract from the New South Wales government in Australia to plan and design the North West Rail Link in Sydney. The project includes six new stations and a 14-mile addition to the City Rail network from Epping to Rouse Hill in North West Sydney. Under the contract, AECOM will serve as the lead technical adviser for engineering, rail systems and architecture.

• Chile has chosen RailComm to provide its track warrant control (TWC) system for the nation’s Empresa de los Ferrocarriles del Estado (EFE). RailComm’s Domain Operations Controller train-control system will be used for dispatching and train management. EFE will have two dispatch centers in the cities of Santiago and Conception to monitor and control trains within the 1,242-mile rail system.

• Trinity Industries Inc. reported net income of $30 million, or 37 cents per common diluted share, in the second quarter compared with net income of $18.4 million, or 23 cents per diluted share, in the same period a year ago. Revenue rose 31 percent to $710 million. The Rail Group reported second-quarter revenue of $280.7 million and an operating profit of $15.4 million, compared with revenue of $112.9 million and an operating loss of $2.7 million in second-quarter 2010. As of June 30, the Rail Group’s backlog increased to $2.2 billion, representing 27,240 rail cars, compared with a backlog of $1.8 billion, or 22,490 rail cars, as of March 31. The Railcar Leasing and Management Services Group reported revenue of $130.4 million and an operating profit of $59.7 million in the second quarter, compared with revenue of $119.6 million and an operating profit of $49.2 million a year ago.

• Wabtec Corp. reported second-quarter sales rose 28 percent year over year to $479 million primarily due to strong growth in the Freight Group. Excluding special items, mainly a previously announced charge for a court ruling that Wabtec plans to appeal, earnings per diluted share jumped 45 percent to a record 94 cents compared with a year ago. Excluding special items, income from operations reached a record $72 million, or 15 percent of sales, compared with 13.3 percent in the year-ago quarter. The backlog at the end of the second quarter totaled a record $1.5 billion. Also during the second quarter, Wabtec repurchased 95,000 shares of company stock for $6 million and completed the acquisition of a transit aftermarket parts business.

• CIT Rail recently ordered 5,000 rail cars from multiple manufacturers, CIT Group Inc. officials announced. The orders, for which deliveries are scheduled in 2012, include the exercise of an option for an additional 1,750 cars received when the company ordered 3,500 cars earlier this year. The orders entail covered hopper and tank cars for various industries, including oil and natural gas drilling, renewable fuels and agriculture.

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More News from 7/27/2011