American Railcar Industries, Inc. Announces Plan to Restart Production at Its Ohio Castings Joint Venture
April 20 2011 - 4:41PM
American Railcar Industries, Inc. (Nasdaq:ARII) (the "Company" or
"ARI") announced today that Ohio Castings' board of directors
approved a plan to restart production at its railcar castings
facility in Alliance, Ohio. ARI continues to remain
Agile,
Responsive and
Innovative to meet the needs of its customers and
shareholders.
"We are very excited to announce the plan to resume production
at Ohio Castings," said President and CEO James Cowan. "The
decision to restart production was based primarily on strengthening
demand for new railcars. We expect this decision will prove
beneficial as we ramp up railcar production in the second half of
2011."
Ohio Castings was temporarily idled in June 2009 due to weak
demand in the new railcar market. Over the past several months, ARI
has seen an increase in new railcar quotes, orders and backlog. In
response to the increase in demand, Ohio Castings is expected to
begin shipping castings during the third quarter of 2011.
ARI is a one-third owner of Ohio Castings, which provides ARI
and the other partners access to railcar castings at a favorable
price. Railcar castings, which historically have been subject to
supply constraints, are a critical railcar component.
About American Railcar Industries, Inc.
American Railcar Industries, Inc. is a leading North American
designer and manufacturer of hopper and tank railcars. ARI also
leases, repairs and refurbishes railcars, provides fleet management
services and designs and manufactures certain railcar and
industrial components. ARI provides its railcar customers with
integrated solutions through a comprehensive set of high quality
products and related services.
Forward Looking Statement Disclaimer
This press release contains statements relating to the Company's
and the Company's joint venture's expected financial performance,
future business prospects, events, plans, production schedules,
demand, orders, objectives, expectations and intentions that are
forward-looking statements. Forward-looking statements represent
the Company's estimates and assumptions only as of the date of this
press release. Such statements include, without limitation,
statements regarding the railcar industry, and potential
improvements therein, the potential increased order activity, the
Company and the Company's joint venture's prospects, the
anticipated market and market acceptance for railcars and railcar
castings and anticipated customer demands. These forward-looking
statements are subject to known and unknown risks and uncertainties
that could cause actual results to differ materially from those
anticipated. The Company and the Company's joint venture operations
involve numerous risks and uncertainties, including without
limitation, difficulties associated with production start-up,
pricing, market demand, delays and unexpected costs. Other
potential risks and uncertainties relating to ARI's business are
described in ARI's filings with the Securities and Exchange
Commission. ARI expressly disclaims any duty to provide updates to
any forward-looking statements made in this press release, whether
as a result of new information, future events or otherwise.
CONTACT: Dale C. Davies
Michael Obertop
PHONE: 636.940.6000
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