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8-K - FORM 8-K - American Railcar Industries, Inc. | c16670e8vk.htm |
Exhibit 99.1
AMERICAN RAILCAR INDUSTRIES, INC. 100 Clark Street, St. Charles Missouri 63301 www.americanrailcar.com |
News Release
For Release: May 5, 2011 |
Contact: Phone: |
Dale C. Davies Michael Obertop 636.940.6000 |
AMERICAN RAILCAR INDUSTRIES, INC. ANNOUNCES ENGAGEMENT TO DESIGN AND
DEVELOP RAILCARS FOR INDIAN RAILWAYS
DEVELOP RAILCARS FOR INDIAN RAILWAYS
ST. CHARLES, MO (May 5, 2011) 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 Companys Indian joint ventures 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 ventures 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 ARIs 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 Companys estimates and assumptions only as of
the date of this press release. Such statements include, without limitation, statements regarding
the Companys prospects, ARIs and Amtek Railcars strategies for growth, anticipated benefits to
ARI and Amtek Railcar of ARIs new agreement with Indian Railways and the timing thereof,
expectations about the performance of ARIs and Amtek Railcars 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 ARIs or Amtek
Railcars 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 Companys 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
Companys designs to meet Indian requirements, risks associated with our joint ventures, and ARIs
production schedule and the construction and production schedules of ARIs joint ventures. Other
potential risks and uncertainties relating to ARIs business, including its joint ventures, are
described in ARIs 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.