ARI first-quarter loss shrinks

American Railcar Industries Thursday reported a loss of $5.3 million, or 25 cents per share, in the first quarter, less than the $7 million loss it reported in the first quarter of 2010, as revenue rose 62% to $84.8 million, compared with $52.3 million in the same quarter a year ago. ARI’s loss was in line with Wall Street consensus estimates.

In a note, Steve Barger, director, Industrial Manufacturers, for KeyBanc Capital Markets Inc., said, “In our view, the challenging results in the quarter were mostly expected and are overshadowed by the dramatic increase in backlog, which totaled 5,630 cars (vs. 1,050 as of 4Q10). ARII took orders for 5,250 cars in 1Q11, which was supplemented by the 3,500 car order from CIT and implies a book-to-bill ratio of 7.8x. The backlog expansion in the quarter is consistent with strengthening industry order rates as per the American Railcar Institute Committee (ARCI) release,” also released Thursday.

“Amid the robust order environment, we also found it noteworthy that the average revenue per car increased to approximately $102,000 from roughly 83,000 in 4Q10, which we believe partially reflects the improving pricing dynamics in the railcar industry. In summary, despite the loss in the quarter, we believe investors will view this quarter positively,” Barger added.