International helps drive FEC earnings
The Florida East Coast Railroad achieved record revenues and operating profit in 2006, with international and intermodal traffic helping to offset second-half declines in aggregate moves for residential construction, Florida East Coast Industries reported Thursday.
For the fourth quarter, railway revenues were up 2 percent to $63.6 million, and operating profit increased 7 percent to $17.4 million. For the full year, revenue was up 11 percent to $264 million, with operating profit improved 23 percent to $78.4 million.
'The railway delivered record revenues and operating profit for the year, despite a slowdown in residential construction in Florida during the second half of the year which dampened near-term demand for aggregate,' said Adolfo Henriques, FECI chairman, president and chief executive officer.
He noted that improved pricing was a factor in the revenue gains, as was a 9 percent increase in intermodal revenues, which include revenue from drayage services. In addition, a slowdown in domestic automotive traffic was partially offset by an increase in shipments from foreign manufacturers.
The railroad's operating ratio for the fourth quarter improved to 72.7 percent from 74.0 percent in the fourth quarter 2005, when rail operations were impacted by 14 days of limited service as a result of Hurricane Wilma.
'We continue to believe that long-term fundamentals of the railway and of the Florida market are strong. In 2007 we expect softness at the railway in the first half of the year. However, we do expect improving fundamentals in the second half of the year,' Henriques added.
In addition to its railway business, FECI has a substantial real estate arm.