RailAmerica (RA) Reports Decline in April Total Freight; Comments on Outlook
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RailAmerica, Inc. (NYSE: RA) reported that its total freight carloads for the month ended April 30, 2011 were 72,081 down 2.4% from 73,835 in April 2010.
The Company increased shipments in April 2011 in four out of twelve commodity groups compared to April 2010. Much of the decrease was due to shipments of Coal, Chemicals and Petroleum. Coal decreased primarily due to lower shipments in the Central U.S. Chemicals volumes were down across all regions. Petroleum carloads were lower primarily due to lower volumes in the Northeast and West regions. The largest increases were in Metallic Ores and Metals, Non-Metallic Minerals and Products and Agricultural Products. Metallic Ores and Metals increased in all regions. Non-Metallic Minerals and Products increased primarily due to shipments in the Central, Midwest and Northeast regions. Agricultural Products increased due to higher volumes in the Midwest region.
Several of the Company's railroads are being impacted by the recent flooding in the Midwest and other areas. The Missouri Northern Arkansas (MNA) railroad has experienced several washouts and a related derailment resulting in approximately $1 million of operating expense to repair the infrastructure. The flooding has negatively impacted volumes in April and month to date in May at the MNA and other railroads. Considering the weather issues, the Company now expects second quarter 2011 carloads to be near or slightly below second quarter 2010.
The Company increased shipments in April 2011 in four out of twelve commodity groups compared to April 2010. Much of the decrease was due to shipments of Coal, Chemicals and Petroleum. Coal decreased primarily due to lower shipments in the Central U.S. Chemicals volumes were down across all regions. Petroleum carloads were lower primarily due to lower volumes in the Northeast and West regions. The largest increases were in Metallic Ores and Metals, Non-Metallic Minerals and Products and Agricultural Products. Metallic Ores and Metals increased in all regions. Non-Metallic Minerals and Products increased primarily due to shipments in the Central, Midwest and Northeast regions. Agricultural Products increased due to higher volumes in the Midwest region.
Several of the Company's railroads are being impacted by the recent flooding in the Midwest and other areas. The Missouri Northern Arkansas (MNA) railroad has experienced several washouts and a related derailment resulting in approximately $1 million of operating expense to repair the infrastructure. The flooding has negatively impacted volumes in April and month to date in May at the MNA and other railroads. Considering the weather issues, the Company now expects second quarter 2011 carloads to be near or slightly below second quarter 2010.
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