American Railcar profits rise in fourth quarter; new plant announced
St. Charles-based American Railcar Industries Inc. said Wednesday that its profit rose in the fourth quarter despite declining revenue and railcar shipments.
The company reported a profit of $7.9 million for the fourth quarter, or 37 cents per share. Profit improved 28 percent from $6.1 million during the same quarter a year ago, or 29 cents per share. Revenue in the quarter was $161.9 million, a 2 percent decline from $165.3 million in the quarter a year ago.
The company said sales were hurt because of increased competition and reduced demand for hopper railcars. The revenue decline was partially offset by an increase in tank car sales and profits were helped by improved manufacturing efficiency.
For the year, American Railcar had $37.3 million in profits, or $1.74 per share. Profits were up 6 percent from $35.2 million in fiscal 2006, or $1.67 per share. Revenues improved 8 percent for the year, to $698.1 million from $646.1 million a year ago.
American Railcar also announced a non-binding agreement to make, sell and supply freight railcars and components in India and Southeast Asian countries in a joint ventures with Amtek Auto Ltd.
If the deal takes place, American Railcar and Amtek, a New Delhi, India-based maker of automotive components, could start building a manufacturing facility in India in the second half of this year, with railcar production starting in 2009.
