Pittsburgh-based Portec Rail Products Inc. said its fourth-quarter earnings fell 5%, as a tax gain and cost-cutting efforts partially offset a steep decline in sales.
Portec earned $1.4 million, or 15 cents per share, in the fourth quarter of 2009, compared with $1.5 million, or 16 cents per share, in the comparable period a year ago. The most recent quarter included a tax gain of 2 cents per share. Revenue fell 21% to $19.2 million from $24.3 million in the comparable 2008 quarter. Portec said the company reduced inventory levels during the quarter.
For full-year 2009, earnings fell to $6.8 million, or 71 cents per share, from $7.8 million, or 81 cents per share, in 2008. Revenue fell to $92.2 million, from $109 million in 2008.
Last month, L.B. Foster, also based in Pittsburgh, announced its plans to acquire Portec’s 9.6 million shares of stock for $112 million, or about $11.71 per share. The deal is expected to close before the end of the second quarter.
At midday Tuesday, shares of Portec were trading at $11.75, down fractionally.
Responding to request from the state of Maine and other concerned parties, the Surface Transportation Board has decided to hold a public hearing this spring in Maine on the application of the Montreal, Maine & Atlantic Railway to abandon 233 miles of line in Aroostook and Penobscot counties.
“This proposed abandonment would affect many shippers and the local and regional economy and it is important that the Board hears from as many voices as possible,” said STB Chairman Daniel R. Elliott III. “The best way to do that is for Washington to go to Maine instead of Maine coming to Washington.”
The hearing will be scheduled after the April 26 deadline for the written record but before the end of May.
The official request of Maine for a hearing, filed March 4, won quick support from shippers and politicians, including U.S. Sen. Susan M. Collins (R-Maine) and Rep. Michael H. Michaud (D-Maine), as well as Rep. James L. Oberstar (D-Minn.), chairman of the House Committee on Transportation and Infrastructure, all of whom echoed the call for a public hearing.
Wabtec Corp. announced Monday that it has purchased Xorail LLC for $40 million in cash and that it expects the transaction to be accretive in the first year.
Based in Jacksonville, Fla., Xorail has annual revenue of about $40 million from the sale of engineering, design, and construction services, mainly for railway signaling systems. These include wayside signaling, positive train control, and grade crossing warning systems for Class I railroads and passenger transit authorities in North America.
Founded in 1990 as Southwest Signal Engineering Company, Xorail now has 10 satellite offices with about 275 employees. Kash Krishnarao, president of Xorail, will remain with the company.
“Xorail's engineering and wayside capabilities are a good fit with our existing railway electronics business,” said Albert J.Neupaver, Wabtec's president and chief executive officer. “In addition, these capabilities position Wabtec for a larger role as the rail industry implements positive train control technology over the next several years.”
Wabtec Corp. is a global provider of value-added, technology-based products and services for the rail industry. Through its subsidiaries, the company manufactures a range of products for locomotives, freight cars, and passenger transit vehicles. The company also builds new switcher and commuter locomotives, and provides aftermarket services. The company has facilities located throughout the world.
The American Short Line and Regional Railroad Association says registration for its annual meeting in Orlando, Fla., is available onlinethis year, as in the past, and urges early registration. “Register by March 31, and save up to $100 on your registration fee. Fees go up an additional $50 on April 1, and again on April 21,” ASLRRA says.
Online registration is available at https://members.aslrra.org/mtg_list.asp.
ASLRRA also notes, “We are still holding onto the railroad room block at the Hilton Bonnet Creek, but it is filling fast and we will need to open it up to the rest of the membership by the end of the week.”
New York’s Metropolitan Transportation Authority says it is evaluating a plan to establish wireless Internet services at Grand Central Terminal and Penn Station-New York, both in Manhattan, and for Metro-North and Long Island Rail Road trains.
MTA reportedly has invited companies to submit proposals for installing WiFi. Any company securing a contract with MTA would be expected to finance the project itself. MTA seeks to establish such service by year’s end.
Still unclear is whether customers would be expected to pay for WiFi service or whether any provider could generate revenue by other means. Amtrak recently introduced Wi-Fi service on its Acela trains plying the Northeast Corridor, initially at no charge to Amtrak customers.
In a report characterized by Washington Area Metropolitan
Area Transit Authority Board Chairman Peter Benjamin as “withering,”
former WMATA General Manager David Gunn (pictured at left) says it will take three years for a
new management team to turn around the agency’s accident-plagued Metrorail
rail transit system—the nation’s second busiest—that serves the capital
The board hired Gunn, 72, an industry veteran who served as
Metro general manager from 1991 to 1994, “to diagnose Metro’s ills and outline
solutions” and “to provide an analysis on the current status of Metro, identify
issues of concern, and recommend corrective actions to alleviate the
Gunn’s report “was more than frank, it was withering," Benjamin
said after hearing Gunn’s oral assessment at a board meeting. “He gave us a
very clear, very honest, unvarnished-truth type of assessment, and told us we
have a lot of issues we have to deal with, and we have to deal with them
Gunn’s report comes as Metro faces an unprecedented number
of safety investigations into deadly accidents (such as last year’s Red Line
wreck, pictured, that killed nine, attributed to a failure of the automatic
train control system); instability and vacancies in its senior management; and
growing deficits in its operating and capital budgets, including a projected
$190 million gap in its $1.4 billion operating budget for the fiscal year that
begins in July.
A summary of the report released March 11 by WMATA said Gunn
urges speedy recruitment of a new general manager with a strong operating
and technical background, along with the “hiring and retaining” of senior
managers with solid engineering experience. He also urges the troubled
agency to “level with the public regarding the seriousness of the problems
facing Metro,” and he called for an end to a “shoot the messenger” culture that
discourages employees from reporting safety problems.
The report followed by exactly one week Federal Transit
Administrator Peter M. Rogoff’s call for a “top to bottom” change in the
way Metro handles safety issues. Reporting the findings of a safety audit
prepared for Congress, Rogoff called Metro’s Safety Department “dysfunctional
“Mr. Gunn’s recommendations will help the board move forward
in working with Interim General Manager Richard Sarles and it will help us
select the next permanent general manager to head the transit agency,”
said Board Chairman Benjamin. Sarles will arrive on March 29.
According to the summary, Gunn’s recommendations include
“Create a workplace where safety is openly discussed,
problems are reported and solved, and all employees, supervisors, and
managers know they can ask for help without fear. Provide all employees
with the training and knowledge required to be safe and ensure the system
“Avoid service cuts to Metrorail; recognize cost recovery of
80% on rail and 35% on bus. Manage rail fare increases realistically to
minimize ridership losses. Allocate financial resources based on the
system’s operating and capital needs. Educate the public about
financial realities: this trend cannot continue.
“Increase direct reports to the general manager for better
control and strengthen senior management. Merge engineering and
maintenance functions around systems (examples: signals, power, track).
“Create an organization with clear responsibility centers.
Develop with key managers realistic, quantifiable goals tied to capital
and operating budgets and hold managers accountable. Link personnel
allocations more closely to the budget, goals, and objectives.
“Monitor monthly reports to assure goals are being met
(examples: miles of track, ties, fasteners, joints, and turnouts
“Recruit a permanent general manager with a strong operating
and technical background; the quality of the next general manager will
significantly affect the ability to hire competent senior managers. Recruit
experienced senior managers with engineering experience to fill
many currently open positions. Hire and train qualified staff to address
the maintenance backlog.
“Overcome the negative impact of reductions in force and
early retirements. Stop using hiring freezes to control the budget.
Introduce a new reporting regimen so that quantifiable goals are tied to
the capital and operating budgets. Prioritize capital and operating
budgets by asset class (ex: bus procurement, rail replacement, ties, etc.)
“Accelerate track and car maintenance, cleaning, and
replacement. Clean tunnels and stations, necessary for equipment
reliability and safety. Generally increase maintenance programs.”
At a meeting Thursday in Washington, D.C., Amtrak officials said ridership for the first fiscal quarter of 2010 (Oct.-Dec. 2009) was up over the comparable period in FY09, when ridership declined due to recession. But the first quarter also trumped its first-quarter FY08 counterpart; Amtrak notched record ridership in the 12 months of FY08.
“Ridership and revenue are ahead of plan,” said Amtrak Vice President of Government Affairs and Corporate Communications Joe McHugh, addressing members of the Railway Supply Institute assembled to exchange ideas on Amtrak’s supply needs.
McHugh noted FY10 ridership so far also was strong throughout the Amtrak system. Responding to a question on Northeast Corridor performance, McHugh said Amtrak now commanded 65%-to-66% of the combined air/rail market between New York and Washington, D.C. More surprising to some attending was the gains made by the NEC between New York and Boston; McHugh said Amtrak now held “50%-to-51% of the air/rail market” there.
The information exchange came as Amtrak and the supplier industry discussed the promises and problems involved in acquiring rolling stock and other supplies for future service improvements and expansion, and the best approach for both the passenger carrier and the supplier community to secure such improvement.
The need for rolling stock, in particular is becoming critical: Consultant Rob Edgcumbe, assisting Amtrak’s Operations Department, noted that the carrier’s current operating fleet has “an average age of over 25 years—the highest in Amtrak history, even older than the 1971 average,” when Amtrak inherited used passenger equipment from numerous railroads.