Western Railroad Discussion > "Railcar orders fall, while backlog narrows"

Oct. 18 news from RAILWAY AGE Magazine:
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Railcar orders fall, while backlog narrows

Railcar orders declined 30% in the third quarter from second-quarter activity, dropping to 8,121 from 11,595, the American Railway Car Institute Committee of the Railway Supply Institute reported. Orders fell 62% from the year-ago quarter level of 21,466 units.

Third-quarter car deliveries of 15,032 units declined less dramatically, down 7% from the second quarter's 16,143 units and off 21% from 19,008 units in the 2006 third quarter.

The Committee notes that the railcar backlog of 67,000 units for the third quarter was less than the 73,911 cars recorded in the second quarter.

"Ethanol-related demand continues to drive industry orders," an Oct. 17 Wachovia Capital Markets research report stated, categorizing the backlog as "healthy." "Orders for these car types accounted for just over 50% of the railcar orders" in the third quarter, and the backlog "gives us confidence that demand remains strong for certain railcar types for at least the next 12 months," Wachovia's report said.