This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

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.

2 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
ARII $39.28 -1.70%
AAPL $118.60 -2.20%
FB $93.58 -0.46%
GOOG $628.20 0.41%
TSLA $259.67 -2.40%

Markets

Chart of I:DJI
DOW 17,514.98 -174.88 -0.99%
S&P 500 2,088.37 -15.47 -0.74%
NASDAQ 5,088.0780 -40.2030 -0.78%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs