Archive for February 25th, 2013
Norfolk Southern announced today that it will cease regional railcar classification operations at its Roanoke Terminal hump yard in Roanoke, Va., effective immediately.
The terminal will continue to provide service to local customers and will be a hub for through-train operations.
The Roanoke hump operation has seen a decline in the volume of general merchandise cars handled by about 30% since 2006. At the same time, system-wide changes in the railroad’s operations have freed up network capacity, meaning classification operations performed at Roanoke are no longer necessary.
The geographical location and layout of the hump yard make it not only expensive, but redundant within the NS network, said Terry Evans, vice president of transportation, in a written statement.
The termination will eliminate about 140 jobs. Most of the affected positions are those of carmen, train crews and some track maintenance workers.
American Railcar Industries reported its net income in the fourth quarter of 2012 was a record $24.4 million, jumping 382% from $5.1 million in the fourth quarter of 2011.
Quarterly revenue was $207.7 million, up 6% from $196.8 million in the same quarter in the previous year, driven primarily by an increase in revenue for the manufacturing and leasing segments.
Manufacturing segment revenue was $236.5 million in the fourth quarter of 2012, increasing more than 14% from $207.9 million in the fourth quarter of 2011. Leasing segment revenue was $5.1 million in the fourth quarter, an increase of $4.7 million from $0.4 million in the same quarter in 2011.
Fourth quarter railcar shipments were about 2,000 railcars, including 390 railcars to leasing customers.
“The shipment of tank railcars remained strong, which provided us with a favorable sales mix during the quarter,” said James Cowan, president and CEO of ARI, in a written statement. “Strong tank railcar volumes generated operational leverage and efficiencies that were partially offset by lower shipments of hopper railcars.”
ARI received orders for 1,430 railcars during the quarter, which caused the company’s backlog to decline from 7,630 railcars at the end of the third quarter of 2012 to 7,060 railcars at the end of the fourth quarter, of which 5,250 were for direct sale and 1,810 were for lease, according to Stifel Transportation, Logistics and Equipment Research Group.
For the full year of 2012, the North American designer and manufacturer of hopper and tank railcars had a record profit of $63.8 million, rising 1,372% from $4.3 million in 2011. Annual revenue was $711.7 million, up from $519.4 million, driven by an increase in manufacturing segment revenue.
Revenue in the manufacturing segment was $853.0 million in 2012, compared with $488.8 million in 2011. Leasing segment revenue was $13.4 million, compared with $1.1 million in 2011.
The company shipped about 7,880 railcars, including 2,100 railcars to leasing customers, during 2012, which was 51% higher than the approximately 5,230 railcars shipped during 2011, of which about 350 were to leasing customers.