April 26, 2006
ACL reports soaring revenues
American Commercial Lines Inc. (Nasdaq: ACLI) has announced results for the first quarter ended March 31, 2006. Revenues were $198 million, a 36% increase compared with $146 million for the first quarter of 2005. Net income for the quarter was $11.1 million or $0.36 per diluted share compared to a net loss of $6.3 million for the first quarter last year.
Commenting on the quarter, Mark R. Holden, President and Chief Executive Officer, stated: "We are pleased with our results for the first quarter. As previously announced, industry fundamentals continued to strengthen during the first quarter in both of our business segments, transportation and manufacturing. First quarter results benefited from very favorable operating conditions, stronger than normal freight demand and accelerating productivity gains within our manufacturing business. At the beginning of the year, we increased the portion of our transportation business which is sold on the spot market from approximately 20% - 25% in 2005 to approximately 30% - 35% in 2006. Our spot business is experiencing a favorable rate environment driven by demand during the first quarter and, therefore, more of our business benefited from this trend than in prior years."
Revenues within the transportation segment increased 31% to $170 million for the first quarter compared to $130 million during the first quarter of 2005. The increased revenues were driven in part by fuel neutral rate increases of 24% on the dry freight business and 11% on the liquid freight business compared to the first quarter of 2005.
Revenues from the manufacturing segment (not including revenues for inter-company production) increased 82% to $25.7 million for the first quarter of 2006 compared to $14.1 million during the first quarter of 2005. The increased revenues were driven by the production of 52 dry cargo barges and two liquid tank barges during the first quarter versus zero dry cargo barges and 11 liquid tank barges during the first quarter of 2005.
Earnings before Interest, Taxes and Depreciation and Amortization (EBITDA) for the first quarter of 2006 was $34.7 million, a 153% increase compared to $13.7 million for the first quarter last year.