Thursday, November 05, 2009

American Railcar shipments down 71%

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American Railcar Industries, Inc. reported Thursday that it shipped approximately 610 railcars in the third quarter of 2009, compared to 3,120 in the third quarter of 2008, resulting in EBITDA of $9.1 million and net earnings of $1.1 million.

 “As the weak economy is driving low demand for railcars, we shipped 71% fewer railcars in the third quarter of 2009 as compared to the same quarter of 2008," said James Cowan, president and CEO of ARI. "The weak railcar market has and will continue to require us to evaluate our production levels at all manufacturing locations and we plan to continue to adjust our workforce and production levels as needed. In addition, we have reduced overhead costs at all manufacturing locations as a result of reduced spending. Our railcar services segment continues to experience strong results with revenues increasing 32% in the third quarter of 2009 compared to the same quarter of 2008. Our balance sheet continues to be strong with $287.1 million in cash and $50.1 million in short-term investments.”

For the three months ended Sept. 30, 2009, revenue was $78.1 million and net earnings were $1.1 million or $0.05 per share. This compared with revenue of $217.2 million and net earnings of $7.4 millionor $0.35 per share.

For the nine months ended Sept. 30, 2009, revenue was $345.0 million and net earnings were $5.0 million or $0.23 per share. For the corresponding period up last year, revenue was $605.8 million and net earnings were $23.8 million or $1.12 per share.