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. Announces Plans To Invest In Railcar Leasing

American Railcar Industries, Inc. (NASDAQ: ARII) (the “Company” or “ARI”) announced today that it plans to invest in railcar leasing as it seeks to expand and diversify its business in response to customer demands and market conditions. The Company remains Agile, Responsive and Innovative in responding to new opportunities to support its customers.

“ARI is very excited to offer railcar leasing and provide another option for customers to utilize our quality railcars,” said President and CEO James Cowan. “We remain committed to meeting the needs of our customers. The economy and railcar market have been challenging over the last couple of years and ARI is responding to those challenges with an expanded market strategy.”

ARI has excellent customer relationships in the railcar industry through sales of new railcars, railcar repair, refurbishment, and fleet management services. Through railcar leasing, ARI intends to provide customers with a broader offering of services.

ARI is currently in negotiations with American Railcar Leasing LLC (“ARL”), an affiliate, to enter into an agreement pursuant to which ARL would identify potential leasing customers for ARI in exchange for fees payable by ARI to ARL. ARL is well-known in the railcar industry and has long-standing relationships with customers that exclusively lease railcars. ARL is controlled by Mr. Carl C. Icahn, the Company’s principal beneficial stockholder (through Icahn Enterprises L.P.) and the chairman of the Company’s board of directors. Any agreements with ARL are the product of arm’s length negotiations and are approved by the independent directors of the Company’s board of directors.

ARI also anticipates that the leasing business will provide a more consistent stream of cash flows and revenue, which management expects would diversify the Company and improve performance during the down cycles of the railcar market. ARI currently plans to fund leasing operations through existing cash. As of September 30, 2010, ARI reported cash of approximately $310 million. Investing existing cash in railcars built to order for leasing customers is expected to enhance returns.

1 of 3

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

Markets

Chart of I:DJI
DOW 16,102.38 -272.38 -1.66%
S&P 500 1,921.22 -29.91 -1.53%
NASDAQ 4,683.9190 -49.5780 -1.05%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs