American Railcar Industries, Inc. Announces Engagement to Design and Develop Railcars for Indian Railways
May 05 2011 - 5:17PM
American Railcar Industries, Inc. (Nasdaq:ARII) (the Company or
ARI) announced today that the Indian Railways Research Designs and
Standards Organization (Indian Railways) awarded ARI the Global
Tender to design and develop certain railcars for service in India
for a total contract price of $9.6 million. The Company remains
Agile,
Responsive and
Innovative in identifying new business
opportunities that expand its global footprint.
"ARI is very excited about the opportunity to work with Indian
Railways. We believe this agreement will assist in establishing ARI
as a high quality and dependable producer of freight railcars for
use in the Indian market," said James Cowan, President and CEO. "We
remain committed to identifying and seizing new opportunities both
domestically and abroad. The economy and railcar market have been
challenging over the last couple of years and ARI is responding to
those challenges with an expanded market strategy."
Under this agreement, ARI will work with Indian Railways to
assess the operating conditions for freight railcar traffic, design
four new railcar types for heavier axle loads and build six railcar
prototypes in the United States. Throughout the project, ARI will
provide training to Indian Railways personnel on design, testing,
manufacturing practices, quality assurance and maintenance of these
railcar designs.
ARI will receive payment based upon the completion of certain
design, manufacturing and development activities. ARI expects the
contract to extend over several years with almost half of the steps
being completed within the first couple of years.
The construction of the Company's Indian joint venture's state
of the art railcar manufacturing facility near Chandigarh, India is
currently underway. The joint venture Amtek Railcar Industries
Private Limited (Amtek Railcar), of which ARI has a 50% ownership,
may utilize the railcar designs being developed under this
agreement, or similar railcar designs, for the joint venture's
product offerings in India. The Company believes this contract will
allow ARI and Amtek Railcar to bolster their relationships with
Indian Railways.
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. ARI is controlled by Mr. Carl Icahn,
the chairman of ARI's board of directors, through his affiliate,
Icahn Enterprises L.P.
Forward Looking Statement Disclaimer
This press release contains statements relating to our expected
financial performance, future business prospects, events, plans,
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 Company's prospects, ARI's and Amtek Railcar's
strategies for growth, anticipated benefits to ARI and Amtek
Railcar of ARI's new agreement with Indian Railways and the timing
thereof, expectations about the performance of ARI's and Amtek
Railcar's product offerings and businesses, anticipated market and
market acceptance for railcars built for use in India, anticipated
benefits of an expanded marketing strategy and entry into new
markets, any expectations about ARI's or Amtek Railcar's production
or construction schedules, anticipated customer demands and
expectations regarding ongoing and new relationships. 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's performance under
the new agreement, entry into new markets and participation in the
joint venture involve numerous risks and uncertainties, including
without limitation, difficulties associated with pricing, delays,
unexpected costs and integrating the Company's designs to meet
Indian requirements, risks associated with our joint ventures, and
ARI's production schedule and the construction and production
schedules of ARI's joint ventures. Other potential risks and
uncertainties relating to ARI's business, including its joint
ventures, 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
636.940.6000
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