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Yesterday, Florida East Coast Industries Inc. (FECI) reported $48.6 million in first-quarter revenue from Florida East Coast Railway (FECR), a 10 percent increase compared with the same 2003 period.

The 351-mile regional's operating profit and operating profit before depreciation rose 26 percent to $11.1 million and 18 percent to $16.1 million, respectively. Increasing revenue and income, and decreasing costs enabled FECR to lower its quarterly operating ratio 3 points to 77.1 compared with first-quarter 2003.

"The railway's first-quarter revenue growth was stronger than we had expected," said FECI Chairman, President and Chief Executive Officer Robert Anestis in a prepared statement, adding that aggregate and intermodal carloads — benefiting from an improved economy and new marketing initiatives — increased 7.7 percent and 12.8 percent, respectively. "As a result we are increasing our 2004 full year outlook for the railway's revenues and operating profit growth from the low-single digits, to mid- to upper-single digits."

On a consolidated basis, FECI posted quarterly revenue of $71.6 million, a 5.5 percent decrease compared with the same 2003 period. Income from continuing operations dropped 15 percent to $5.9 million but net income rose 20 percent to $8.3 million. Quarterly operating expenses of $60.9 million decreased 2.3 percent compared with first-quarter 2003's $62.4 million.