Global Railway moves from loss to profit

Growing transit business helped Global Railway Industries Ltd. increase its second-quarter 2010 revenue by 15.1% to C$20.0 million (US$19.2 million) compared to C$17.4 million (US$16.7 million) in the second quarter of 2009. The company also earned net income of $498,000 compared to a net loss of C$875,000 in the 2009 quarter. Earnings per share of C$0.03 compared to a loss per share (C$0.06) last year.

For the exit months ended June 3,2010, revenue increased 20.6% to C$38.7 million compared to C$32.1 million for the same period in 2009. Net income of C$587,000 compared to a net loss of C$2.4 million for the comparable 2009 period. Earnings per share of C$0.04 compared to a loss per share (C$0.16) last year

Fausto Levy, interim president and CEO of Global, commented, “We are encouraged by our favorable operating progress, the sale of G&B Specialties, Inc. and the pending sale of the assets of Bach-Simpson Corp. and resolving the obligations under our credit agreements.

“Thefavorable progress of the VIA Rail Canada locomotive remanufacturing contract is tempered by the slow economic recovery negatively impacting the freight car repair business,” Levy said. “With the economy now showing signs of growth, the outlook of the railroad industry also appears to be improving. However, overall railroad volumes are improving slowly. Despite the mild economic recovery, there likely will be a lag between recovery of shipping volumes and the decision of railroads to start restoring previously cancelled capital and maintenance programs.”

Levy said Global continued to benefit from transit business growth in the second-quarter and six-month periods, with more than 50% of revenue now generated from transit customers.