American Railcar Industries saw its net income swing to a $5.9 million loss in the second quarter, down from a $1.1 million profit a year earlier.
There was a sharp drop in new railcar shipments despite some growth in its car repair business.
However, the manufacturer said “the railcar industry has begun to see a modest improvement in demand,” as seen in orders received in the past three months for 1,080 new railcars. “To fulfill the new railcar orders we will begin modestly ramping up production rates,” said President and CEO James Cowan.
ARI’s manufacturing-heavy total sales fell to $61.2 million in the April-June period from $109.9 million in the 2009 quarter, as its shipment of new railcars shriveled to 370 units from 980 a year earlier.
But its railcar services segment, which handles repairs of stored cars before they go back into service and refurbishments that add life to a railcar, saw its revenue grow. ARI recently expanded some of its car repair hops and handed some of that type of work at its new-car facilities as well.
Revenue from the manufacturing segment plunged 46 percent to $43.2 million in the quarter, while railcar services saw receipts grow 17 percent to $17.9 million.
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