Tuesday December 22, 12:42 pm Eastern Time
Company Press Release
RailAmerica Subsidiary Awarded $5.2 Million in New Trailer Orders
BOCA RATON, Fla.--(BUSINESS WIRE)--Dec. 22, 1998--RailAmerica, Inc. (Nasdaq/NNM:RAIL - news) announced today that its wholly-owned specialty truck trailer manufacturing subsidiary, Kalyn/Siebert, Inc. (KSI), was awarded a new order for tactical van trailers valued at approximately $5.2 million.
The order, placed by the United States Army Tank & Automotive Command (TACOM), raises KSI's backlog of confirmed orders to more than $23 million.
The contract calls for KSI to produce 71 tactical van trailers for TACOM over 15 months. TACOM utilizes these highly specialized van trailers for field communications equipment purposes. KSI expects to commence production on the trailers immediately with delivery of the first trailers set for February 1999. This transaction represents KSI's seventh major order against its existing $27 million contract with TACOM -- one of over $50 million in government contracts that KSI has in-house.
KSI, with sales of approximately $30 million for the nine months ended September 30, 1998, manufactures a broad line of heavy duty specialty truck trailers from its production facilities in Gatesville, Texas and Trois-Rivieres, Quebec, Canada. In addition to the TACOM contract, KSI produces trailers under contracts with the General Services Administration for certain government agencies, including the U.S. Army, Navy, Air Force and Marines, with the balance of its specialty trailer production manufactured for commercial customers in the trucking, construction, utility, oil well drilling and railroad industries. KSI sells its trailers through a base of more than 170 independent dealers in 49 states, Canada and Mexico.
RailAmerica, Inc. Chairman, President and C.E.O. Gary O. Marino said, ''KSI has had an outstanding 1998, setting a new high for trailers produced and delivering record revenues and income. This new government order, combined with significant demand from the commercial specialty truck trailer sector, should allow KSI to continue on its record pace into 1999 and beyond.''
RailAmerica, Inc. is a diversified international transportation company operating 12 railroads over approximately 2,400 route miles in eight U.S. states and the Republic of Chile. The Company holds a minority equity interest in the transcontinental Australian passenger rail service and owns Kalyn/Siebert, Inc., a specialty truck trailer manufacturer with production facilities in Gatesville, Texas and Trois-Rivieres, Quebec, Canada.
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