American Railcar Industries, Inc. Reports Second Quarter 2010 Results
The Company’s net loss for the second quarter of 2010 was affected by lower operating earnings, as discussed above and an increase in net interest expense.
For the six months ended June 30, 2010, revenues were $113.5 million and net losses were $12.9 million or $0.61 per share. In comparison, for the six months ended June 30, 2009, revenues were $266.9 million and net earnings were $3.9 million or $0.18 per share. Revenues were lower in the six months ended June 30, 2010 when compared to the same period of 2009 primarily due to a decrease in railcar shipments, an overall decrease in average selling prices due to pricing pressures and a change in product mix. These decreases were partially offset by increased railcar repair volumes. During the six months ended June 30, 2010, the Company shipped approximately 710 railcars as compared to approximately 2,470 railcars in the same period of 2009.
Adjusted EBITDA was $0.5 million for the six months ended June 30, 2010 compared to $25.5 million in the six months ended June 30, 2009. This decrease resulted primarily from decreased railcar shipment volume, a decrease in gross profit margin and an increase in joint venture losses, all partially offset by a decrease in selling, administrative and other costs. The Company’s gross profit margin decline is primarily attributable to decreased railcar shipments, decreased overall average selling prices due to competitive pricing pressures and the impact of fixed costs in a low production environment. The increase in joint venture losses was primarily driven by losses at the Company’s axle joint venture and due to low operating rates. The decrease in selling, administrative and other costs was primarily attributable to cost control measures and a non-recurring legal settlement recorded in the first quarter of 2009.
The Company’s net loss for the six months ended June 30, 2010 was affected by lower operating earnings, as discussed above, an increase in net interest expense and increased losses from joint ventures, all partially offset by a decrease in our selling, administrative and other costs.
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