Railroads benefiting from auto growth
Apr 26, 2013 | 04:56 PM
| Corinna Petry
CHICAGO North American railroads say they are seeing the benefits of increased shipments of motor vehicles and auto parts and are preparing to service new factories in Mexico as they look to take advantage of the automotive sectors growth.
"The growth rate of the automotive industry continued to outpace that of the overall economy during the first quarter," Eric L. Butler, executive vice president of marketing and sales for Union Pacific Railroad Co., said during the companys recent first-quarter earnings call.
According to Butler, the companys automotive volume grew 2 percent in the quarter, which combined with an 11-percent increase in average revenue per car drove a 13-percent rise in the railways total revenue. The steady pace of total auto sales in the first quarter "is expected to continue throughout the year, which combined with declining dealer inventories, should be good news for our automotive business," Butler added.....
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