Friday, July 31, 2009

Portec sees positive signs in challenging quarter

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Portec Rail Products, Inc., has reported reduced revenues and earnings for both the second quarter and the first half of 2009, but President and Chief Executive Officer Richard J. Jarosinski said he was “pleased with our overall performance in what continues to be a tough economic climate for our industry.” He said demand has come from “a wide range of freight and transit customers, who find value in our product group’s ability to significantly reduce their operating expenses.”

portec.jpg “Our friction management product group continues to lead our performance with significant growth in the current quarter and year-to-date periods,” Jarosinski said Friday. “Despite a very challenging economic environment, we are satisfied with the performance of our track component and wayside data management product groups this year.”

Portec reported net income  of $2.2 million or $0.23 per share for the three months ended June 30, 2009, and $3.3 million or $0.35 per share for the six months ended June 30, 2009. These amounts compare to unaudited net income of $2.4 million or $0.25 per share, and $3.8 million or $0.39 per share, for the three and six months ended June 30, 2008, respectively. Average basic and diluted shares outstanding were 9.6 million for all periods presented. Net sales for the three and six months ended June 30, 2009 were $26.5 million and $48.7 million, respectively, while net sales for the three and six months ended June 30, 2008 were $30.2 million and $55.0 million, respectively.