American Railcar Industries derails after missing Q3 estimates
American Railcar Industries, Inc. (Nasdaq: ARII) shares are derailing after the St. Charles, Mo.-based company reported third-quarter revenue of $139.9 million, below analyst estimates of $173.9 million and down 7% from $150.5 million a year earlier.
“We have experienced less demand and increased competition for some of our hopper railcar products in the third quarter of 2007, resulting in lower earnings for the quarter when compared to the prior year. In addition, the third quarter of 2006 included insurance related gains,” CEO James Unger said in a statement. “Management is controlling costs at our hopper railcar facility during this time of lower production levels.”
The firm’s quarterly net earnings fell to $4.9 million, or $0.23 per share, missing Wall Street projections of $0.43 per share and down 55% from $11 million, or $0.52 per share, during the same period of 2006.
Billionaire and activist investor Carl Icahn, who holds a 28.7% stake in American Railcar, is the firm’s chairman.
The firm shipped 1,276 railcars during the third quarter, down 17% from 1,546 last year.
In afternoon trading, ARII shares are plummeting 24.49%, or $4.71, at $14.52. Over the last 52 weeks, shares have ranged from $12.95 to $43.46.
