American Railcar Industries, Inc. (ARI or the Company) (NASDAQ: ARII) today reported its first quarter 2010 financial results.
“The railcar industry, while still at a low point of the economic cycle, appears to be picking up momentum with reports showing that railcar loadings have increased and many stored railcars are returning to service. Along with this modest improvement, which may or may not continue, we have received an increased number of requests for quotations and have been successful in securing several orders in 2010. Both of our railcar manufacturing facilities have maintained production through the downturn, albeit at low levels. In spite of the weakness in new railcar manufacturing, our railcar services segment has been strong with 36% growth in revenues, year-over-year, to $16.7 million for the first quarter of 2010. This growth resulted from higher volumes driven by repair plant expansions and repair work performed at our railcar manufacturing plants,” said James Cowan, President and CEO of ARI. “We are also pleased to announce that the financing for Amtek Railcar Industries Private Limited, our Indian joint venture, was completed and a facility is currently under construction to manufacture railcars to service the Indian markets.”
For the three months ended March 31, 2010, revenues were $52.3 million and net losses were $7.0 million or $0.33 per share. In comparison, for the three months ended March 31, 2009, revenues were $156.9 million and net earnings were $2.7 million or $0.13 per share. Revenues were lower in the first quarter of 2010 when compared to the same period of 2009 primarily due to lower railcar shipments and decreased overall average railcar selling prices due to pricing pressures and a change in product mix. These decreases were partially offset by increased railcar repair volumes due to completed facility expansions and the utilization of our railcar manufacturing facilities for railcar repair projects. During the three months ended March 31, 2010, the Company shipped approximately 340 railcars as compared to approximately 1,490 railcars in the same period of 2009. Our backlog was approximately 500 railcars as of March 31, 2010.