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In a word, Genesee & Wyoming Inc.'s (GWI) 2004 financial results were "excellent," according to Chairman and Chief Executive Officer Mortimer Fuller III. The short line holding company increased revenue 25 percent to $303.7 million and boosted net income 31 percent to $37.6 million compared with 2003.

GWI's North American operations generated free cash flow of $33.1 million compared with $26 million in 2003. However, the company's annual operating expenses rose more than 20 percent to $253 million compared with 2003.

"Due to strong economic activity throughout our operating regions, we achieved 12.8 percent same railroad revenue growth, which more than offset a substantial increase in the price of diesel fuel," said Fuller in a prepared statement. "In addition, our Rail Link management team successfully integrated the acquisition of three railroads from Georgia-Pacific and one rail property from CSX Transportation, while our Illinois management team achieved a smooth start up of the Tazewell & Peoria Railroad."

During the fourth quarter, GWI's North American revenue and operating income increased 30.1 percent to $80.1 million and 41.8 percent to $11.7 million, respectively, compared with fourth-quarter 2003. The company's North American operating ratio improved 1.2 points to 85.4.

In Australia, GWI's half-owned subsidiary Australian Railroad Group increased quarterly revenue 15.1 percent to $85.9 million compared with fourth-quarter 2003. However, the subsidiary's quarterly operating income dropped 8 percent to $17.1 million and operating ratio worsened 5.1 points to 80.1.