RailAmerica (RA) Reports Decline in Novmember Freight Carloads

RailAmerica, Inc. (NYSE: RA) reported its freight carloads for the month ended November 30, 2009. Total carloads for November 2009 were 67,834, down 8.3% from 73,953 in November 2008. In the second quarter of 2009, the Company restructured a customer contract, which resulted in the Company recording the revenue derived from that contract as non-freight revenue instead of freight revenue and carloads. Excluding the effect of this contract, carloads were down approximately 2% for November 2009 compared to November 2008.

The Company had decreased shipments in November 2009 in nine out of twelve commodity groups compared to November 2008. The largest decline was in the Other commodity group and was primarily due to the restructured contract mentioned above. Continued softness in residential construction contributed to the 2,158 fewer carloads in the Non-Metallic Minerals & Products and Forest Products commodity groups, and reduced demand for Metallic Ores & Metals accounted for 857 fewer cars.

Three commodity segments showed year-over-year growth for November 2009 when compared to November 2008. Agricultural Products were up 28% primarily due to a delayed harvest in the Midwest. Motor Vehicles were up 56% due to a new production facility in the Midwest and a general increase in the movement of new automobiles. Waste & Scrap Materials were up 3%.

[SM]

You May Also Be Interested In