RA sees good "acquisition environment" - industry outlook - RailAmerica - Brief Article

Railway Age, Dec, 2003

Short line/regional holding company RailAmerica, which is selling its unprofitable Freight Australia railroad, sees opportunities for expansion at home. "The acquisition environment in North America is stronger than it has been in recent years, with several Class I railroads and private rail owners looking to divest branch/short line railroad properties," said RA Chairman, President, and CEO Gary Marino.

"We believe the anticipated sale of our international railroads positions RailAmerica to take advantage of strategic opportunities as they become available in North America." Marino made this statement as RA reported third quarter earnings of $7.1 million from continuing operations, up from $6.2 million in the corresponding period last year. Revenues rose 7.5% to $91.2 million. Higher fuel and health insurance costs drove the operating ratio to 75.4% in the 2003 quarter from 74.5% last year.