Thursday, March 04, 2010

American Railcar expects lower shipments in 2010

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After reporting sharply reduced railcar shipments in 2009, American Railcar Industries, Inc. said in a statement that “due to continued weakness in the railcar market, we expect our shipments and revenues to decrease in 2010 from 2009.” In 2009, the company shipped approximately 3,690 railcars compared to 7,970 in 2008.

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For 2009, the company reported net earnings of $15.5 million or $0.73 per shareon revenue of $423.4 million. Revenue in 2008 was $808.8 million and net earnings were $31.4 million or $1.47 per share. "Net earnings for 2009 were positively impacted by the Company’s short-term investment activity, which resulted in a net gain of $20.9 million for the year, $13.6 million after-taxor $0.64 per share,” said the company.

James Cowan, president and CEO, also said: “The railcar services segment experienced a 13% growth in revenues in 2009 as compared to 2008 and anincrease in gross profit margin due to the completion of several expansion projects in 2009 that have generated higher volumes and increased efficiencies. Our balance sheet position remains strong with $375.0 million of working capital, which includes $351.1 million in cash and cash equivalents.”

For the fourth quarter of 2009, revenue was $78.5 million and net earnings (before special items) were $10.5 million or $0.50 per share, compared to revenue of $203.0 million and net earnings or $7.6 million or $0.35 per share in the fourth quarter of 2008. During the three months ended Dec 31, the company shipped approximately 610 railcars compared to approximately 1,870 railcars in the same period of 2008.