Show lU W I III M 4 3 H 1 lH I I I i F I T 1 1 1 V. O V M A 1 1 to an surge iff leading railroad equipment have collectively outperformed he general market over the past year i art enhanced by il 8 In the heightened economic ac- and a severe grain car shortage l came a tely t her r Rafter measure of domestic rail activity- contracted sharply and left the nation's railroads plagued with a large and cost- X assortment of idle After bottoming out at units in new car orders rose to units with orders for replacement Parts and related equipment following In a gain in revenue ton coupled with normal fleet due exerted futher Pressure on existing Understandably new car rose to approximately Despite this rebound in ord th of new car jn m prior year's But a strike by Steelworkers at accounts for about 30 of the total production capacity-was largely Favorable tax treatment and finan- aid for Consolidated Rail Corpora- tion and other carriers associated with the Railroad Revitalization and Regulatory Act of 1976 should add considerable strength to the recent upturn in equipment wilh nS 3 b to more energy-efficient than most available the rails stand to benefit from growing fuel a translate into greater demand for related Continued growth in the demand demand lor for mil coal is iw tain 1 to result in orders for coal-hauling Although the items just mentioned f M on new car orders over the next year or so long-range s will be greatly influenced by the railroad industry's cost of margin of and degree of capacity The equipment industry s traditional vulnerability to fluctuations in the should diminish orders coming irom S funds According to American Railway Car see accounted for 55 of toUl orden m From 1970 to such purchases accounted for only 41 of new car s-i mi-vt I Most major railroad equipment pro- have sought to profit flue- by diversifying into unrelated lines of business or by engaging in leas- ing though railroad equipment activity is very other contributing operations must be carefully Reviewing the industry in this way believes that stocks of Corp and should be held term growth and appreciation poten- T. Z r J company Babson's Wellesley |