Portec Rail Products, Inc. reports 2010 second-quarter, six-month results

Portec Rail Products, Inc., had unaudited net income of $864,000 or $0.09 per share for the three months ended June 30, 2010, and $1,321,000 or $0.14 per share for the six months ended June 30, 2010. Results for the three and six months ended June 30, 2010 include charges of $0.23 and $0.33 per share for expenses related to the proposed merger with L.B. Foster Company, which was announced on February 17, 2010.

These amounts compare to unaudited net income of $2,203,000 or $0.23 per share, and $3,339,000 or $0.35 per share, for the three and six months ended June 30, 2009, respectively. Net sales for the three months ended June 30, 2010 increased 22.2% to $32.4 million compared to $26.5 million for the same period in 2009. Net sales for the six months ended June 30, 2010 increased 14.5% to $55.8 million compared to $48.7 million for the same period in 2009. Average basic and diluted shares outstanding were 9.6 million for all periods presented.

Richard J. Jarosinski, President and Chief Executive Officer, said, "Excluding merger-related costs incurred during the first two quarters of this year, our financial results were driven by solid performances from nearly all of our product groups. Our friction management and track component product groups led our sales performance while our load securement and United Kingdom non-rail material handling product groups also contributed significantly."

Jarosinski concluded, "While the global railway industry conditions in 2010 are not yet what they were prior to the beginning of the economic downturn that began in late 2008, we are seeing certain market sectors continue to show positive signs for car loading volume increases and infrastructure investment. In addition, we are happy to see an increase in quoting and order activity from our material handling business located in the United Kingdom."