Mark Szakonyi, Associate Editor | Aug 02, 2012 4:09PM EDT
Genesee & Wyoming profit jumped 17 percent year-over-year to $36.4 million, as higher fuel surcharges and improved operations helped the short-line railroad operator offset a 6.9 percent decline in volume.
The company, which recently announced plans to buy RailAmerica, a short and regional line operator for $1.4 billion, saw revenue rise 3.7 percent to $217 million. North American and European traffic fell 10 percent, while freight hauled on Australian lines dropped 8 percent.
The coal traffic slump drove the overall traffic declines, with shipments down 29.5 percent in North America and Europe. G&W said higher fuel surcharges and a change in the commodity mix helped drive the average revenue per carload up 10.2 percent in the second quarter from the same period in 2011.
The short-line operator’s operating income increased $11.3 million year-over-year to $62.5 million. G&W’s operating ratio improved 4.3 percentage points to 71.3 percent in the same period.
Contact Mark Szakonyi at mszakonyi@joc.com. Follow him on Twitter @szakonyi_joc.
