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RailAmerica Inc. generated more revenue in the second quarter, but reorganization costs, weak lumber traffic and other factors reduced earnings and income, and increased the company’s operating ratio.

Second-quarter revenue increased 13 percent to $116.8 million compared with the same 2005 period. On a “same railroad” basis, quarterly revenue rose 7 percent.

However, earnings from continuing operations fell 40 percent to $5.4 million, operating income dropped 37 percent to $9.2 million, net income decreased 16 percent to $7.8 million and RailAmerica’s operating ratio worsened 6.2 points to 92.2 compared with second-quarter 2005.

“While our financial results lagged last year’s results, we made significant progress during the second quarter toward achieving our improvement objectives for the next several years,” said RailAmerica Chief Executive Officer Charles Swinburn in a prepared statement. “We have begun the process of consolidating our customer service, dispatching and revenue functions, [which] will make our company more efficient and effective going forward.”

During the year’s first half, RailAmerica’s revenue totaled $231.2 million, up 13 percent compared with the same 2005 period. Same railroad revenue rose 7 percent. In addition, net income went up nearly 50 percent to $22.9 million, but earnings from continuing operations decreased 9 percent to $12 million and the company’s operating ratio worsened 1.8 points to 89.9 compared with first-half 2005.

RailAmerica owns and operates 42 regionals and short lines in the Unites States and Canada.