(The following story by John D. Boyd appeared on The Journal of Commerce website on November 5, 2009.)
WASHINGTON, D.C. — Freight railcar builder American Railcar Industries saw third-quarter profit fall 85 percent from a year earlier to $1.1 million, as sales dropped 64 percent to nearly $79 million.
James Cowan, president and CEO, said shipments of 610 cars in the July-September period were down about 71 percent from the 2008 quarter.
“The weak railcar market has and will continue to require us to evaluate our production levels at all manufacturing locations, and we plan to continue to adjust our workforce and production levels as needed,” he said. “In addition, we have reduced overhead costs at all manufacturing locations as a result of reduced spending.”
The company’s car building, its dominant business line, suffered a 70 percent revenue decline to $62 million. But ARI’s railcar services, which include refurbishing older units for customers, saw sales jump to $16 million from $12.1 million a year earlier.
Cowan said the company is also maintaining a strong balance sheet. Its $287 million in cash and cash equivalents is down mildly from $292 million at the end of December. It has another $50.1 million in short-term investments, up from $2.6 million.