Rail America trimming staff and cutting other costs - Rail Update - Brief Article

Railway Age, Jan, 2003

Short line and regional railroad operator RailAmerica, Inc., is trimming 5% of its staff positions and implementing other measures "as part of an ongoing comprehensive plan to reduce costs and increase future profitability in light of the prevailing soft domestic economy and reduced operating results in Australia [caused by] severe drought and a weak grain harvest."

The work force reduction, which was to be completed by Jan. 1, includes about 145 positions at the corporate and operating levels in the U.S. and Australia. RailAmerica, which currently employs around 2,800 people, planned to take an after-tax charge of approximately $200 million in fourth-quarter 2002. The work force and other unspecified expense reductions are expected to result in 2003 pre-tax savings of over $10 million.

RailAmerica had previously lowered interest expenses by about $8 million through a financing program undertaken in May of this year.