(The Associated Press circulated the following article on October 31.)
NEW YORK –- Railroad Operator RailAmerica Inc. on Monday posted a third-quarter profit, reversing a deficit in the year-ago period, when charges from writing down an investment and debt refinancing weighed on results.
Quarterly income totaled $7.7 million, or 20 cents per share, up from a loss of $33.1 million, or 91 cents, last year, which reflects about $1.03 per share in charges from refinancing debt and writing off its investment in E&N Railway.
The latest quarter included 4 cents per share in costs from a previously announced tank car incident in Cincinnati, the company said. But even with the charge, RailAmerica’s income matched the average estimate from analysts polled by Thomson Financial.
Revenue totaled $112.5 million, up 13 percent from about $100 million a year earlier as freight revenue expanded across almost all of its segments. At railroads operated a least year, revenue grew 10.2 percent, RailAmerica said.
The company added that higher energy costs countered its revenue growth, with average fuel prices rising to $1.84 per gallon from $1.40 in last year’s third quarter.
Looking forward, fourth-quarter earnings from continuing operations are forecast to range from 21 cents to 25 cents per share, reflecting higher fuel prices and costs at its Ohio operation.
Analysts predict quarterly earnings of 25 cents per share.