WORCESTER, Mass. — Providence and Worcester Railroad Company today announced its results of operations for the year ended December 31, 2001. Net income for the year decreased to $851,000 in 2001 from $2.0 million in 2000. Diluted income per share decreased to $.19 in 2001 from $.46 in 2000.
Operating revenues for the year were $22.3 million compared to $23.1 million in 2000, a decrease of $871,000, or $3.8%. This decrease consists of a $319,000 (1.7%) decrease in conventional freight revenues, a $169,000 (5.6%) decrease in container freight revenues and a $383,000 (22.2%) decrease in revenues from other transportation related services.
While conventional traffic volume increased modestly (1.2%) during 2001, the effects of this increase were more than offset by a 2.9% decrease in the average revenue received per carloading. This decrease resulted from a shift in traffic mix toward more lower rated commodities.
The decrease in container freight revenue is primarily due to a decrease in volume resulting from the loss of a customer and depressed economic conditions. The decline in other freight related revenues is the result of decreased demurrage charges and maintenance departmental billings. Such revenues vary from year to year depending upon the needs of customers and other outside parties.
Operating expenses for 2001 were $21.9 million, a decrease of $55,000, or .3%, from 2000 when such expenses amounted to $22.0 million. Most of the Company’s operating expenses are of a relatively fixed nature and do not increase or decrease proportionately with changes in operating revenues.
Other income, principally generated from real estate asset management, decreased to $1.0 million in 2001 from $2.0 million in 2000. Income of this nature varies significantly from year to year.