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RAIL EMPLOYMENT



Rail News Home Railroading Supplier Spotlight

8/8/2011



Rail News: Railroading Supplier Spotlight

Updates from Chicago Freight Car, CIT, Siemens and L.B. Foster


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• Chicago Freight Car Leasing Co. has named Robert “Bob” Cleator vice president of sales and marketing to succeed Paul Deasy, who recently was named president. Cleator has 20 years of rail industry experience, including sales and marketing leadership positions at CN and Kansas City Southern. He most recently led the Midwest sales region for American Railcar Leasing L.L.C.

• CIT Group Inc. has named Nelson Chai president. He previously served as the company’s executive vice president, chief administrative officer and head of strategy. As president, Chai will maintain his current duties and also assume oversight of CIT’s corporate finance and vendor finance operating segments. He also will continue to oversee CIT’s global infrastructure and operating architecture, including technology platforms, lead strategic planning and business development functions, and oversee insurance and corporate services activities.

• Siemens has obtained a $358 million contract from Banedanmark, the Danish railway infrastructure developer and operator, to modernize the signaling system of the Copenhagen commuter-rail (S-Bane) network. The contract is the company’s largest rail automation order, Siemens officials said in a press release. Under the contract, Siemens will supply and install the Trainguard MT train control system, and Sicas-type electronic interlockings and switch machines. The equipment package also includes a new operations control center. The first of six construction phases featuring the new signaling system is scheduled to begin operating in 2014.

• L.B. Foster Co. reported net income of $6.4 million, or 61 cents per diluted share, in the second quarter compared with net income of $6 million, or 58 cents per share, a year ago. Sales increased 45.4 percent to $54.2 million due to the inclusion of Portec Rail Products Inc. sales, as well as a 21.5 percent sales increase in legacy business. Gross profit margin was 15.1 percent, 190 points below the prior year, primarily because of costs incurred with the closing of the CXT Grand Island facility in Nebraska, L.B. Foster officials said in a prepared statement. The company also disclosed that on July 12, Union Pacific Railroad notified the company and its CXT Inc. subsidiary of a warranty claim under CXT’s 2005 supply contract for prestressed concrete ties. UP has asserted that a “significant percentage” of concrete ties manufactured in 2006 through 2010 at the Grand Island facility “fail to meet contract specifications, have workmanship defects and are cracking and failing prematurely,” L.B. Foster officials said.



 


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