Thursday, February 21, 2013

Record 4Q, full-year earnings for ARI

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St. Charles, Mo.-based American Railcar Industries late Wednesday reported record fourth-quarter earnings of $24.4 million, up from $5.1 million in the fourth quarter of 2011. Revenue for the quarter was $207.7 million, up 6% from revenue in the year-ago quarter and the highest since the third quarter of 2008, the company said.

ARI attributed the results mostly to higher revenue in its manufacturing and leasing segments. Fourth-quarter revenue in the company's manufacturing segment grew 14% to $236.5 million; leased segment revenue soared to $5.1 million from $427,000 a year ago.

"The shipments for tank railcars remained strong, which provided us with a favorable sales mix during the quarter," said ARI President and CEO James Cowan. "Strong tank railcar volumes generated operational leverage and efficiencies that were partially offset by lower shipments of hopper railcars."

The company's 4Q railcar shipments totaled roughly 2,000, including 390 railcars to leased customers.

ARI's full-year 2012 net income also set a company record of $63.8 million, compared with $4.3 million in 2011.

"Overall, we think this was a standout quarter by almost any

measure," said Keybanc Capital Markets Inc. analyst Steve Barger in a note early Thursday to investors. Among the many variables cited by Barger in ARI's annual results: "Manufacturing revenue of $187 million beat our estimate of $167

million, which we think is due to strong mix of tank cars against lower covered hopper deliveries."