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With the second quarter behind them, RailPower Technologies Corp. execs are looking forward to what they believe will be a better second half.

For the second quarter ended June 30, the hybrid switcher locomotive producer’s revenue of $2.4 million decreased compared with the $4.18 million the company generated during second-quarter 2005. RailPower delivered fewer locomotives (three) than it did during the same period a year earlier (five).

RailPower also recorded a quarterly net loss of $13.6 million compared with a $6.14 million net loss during the same 2005 period – a net-loss increase the company attributes to “the increase in the provision for future contract losses and increased operating expenses.”

In July, RailPower announced it wouldn’t meet a production target of 90 to 100 locomotives and gross margin goal of 30 percent by year’s end after re-assessing operations and delaying the delivery of 10 locomotives to 2007 per a customer request. Instead, the company expects to produce between 50 and 65 switchers this year.

RailPower produced 13 locomotives during the second quarter and has “firm orders” for 152 locomotives compared with an order book of 79 at the end of second-quarter 2005, the company reported.

“We expect our production levels in the third quarter to be consistent with second-quarter levels as we continue to implement operational improvements,” said President and Chief Executive Officer José Mathieu in a prepared statement. “We are confident that as we complete these initiatives, we will be well-positioned to significantly increase locomotive production volumes in the fourth quarter.”

RailPower produces the hybrid Green Goat® and Green Kid® switcher locomotives at plants in Calgary, Alberta; Boise, Idaho; and Longview, Texas.