Global Railway Industries Ltd., a leading North American provider of railway products and services, today reports the Company's 2008 third quarter financial results for the 3 month and 9 month periods ended September 30, 2008. All dollar figures are reported in Canadian currency unless otherwise noted.
2008 Financial Highlights - Three months ended September 30, 2008:
- Total revenue increased to $15.1 million compared with $7.7 million in 2007
- Net earnings of $541,869 compared with $609,394 in 2007
- Earnings per share of $0.04 (diluted) compared with $0.04 (diluted) in 2007
2008 Financial Highlights - Nine months ended September 30, 2008:
- Total revenue increased to $45.2 million compared with $26.4 million in 2007
- Net earnings of $1.3 million compared with $2.9 million in 2007
- Earnings per share of $0.08 (diluted) compared with $0.19 (diluted) in 2007
"Both the integration of our acquisition of CADRI (which doubles our size) and the VIA contract are generally on track. CADRI is planning to release the first remanufactured VIA locomotive in the first quarter of 2009, as per the contract." said Terry McManaman, CEO of Global.
"We continue to achieve improvements in CADRI's production processes and procedures, training, resources, hiring, management control systems, quality assurance testing and capital infrastructure. Although this will be an ongoing process of continuous improvement, Management expects the majority of these changes to be in place and operating efficiently and effectively early in 2009," said McManaman.
McManaman continues, "During Q3, we continued to experience some softening of track and signal sales at our G&B subsidiary. The decreased track and signal sales are a direct result of railroads prioritizing discretionary spending and capital projects. Despite the slowdown in spending by the railroads, G&B's rail gear products sales continue to climb in part driven by new customer demand from a major Mexican railroad. We believe that G&B rail gear sales volumes will continue to grow as we increase our market penetration in Latin American in 2009."
"With the inclusion of CADRI, Global's revenues jumped 96% to $15.1 million in the third quarter of 2008. Similarly for the first nine months of 2008, revenues are up 71% to $45.2 million," said McManaman.
"Net earnings for the third quarter of 2008 were $541,869 compared to net earnings of $609,394 for the third quarter of 2007. Third quarter of 2008 earnings per share on a diluted basis were $0.04, unchanged," said McManaman. "Reflective of the integration and investment in CADRI and VIA contract start up costs in the first nine months of 2008, net earnings were $1.3 million or $0.08 per share diluted compared with net earnings of $2.9 million or $0.19 per share diluted for the same period in 2007. -- www.cnxmarketlink.com
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