Amtrak restructuring is paying off, mid-year financial report shows.

WASHINGTON--(BUSINESS WIRE)--May 4, 1995--The plan to make Amtrak more competitive and customer-focused already is paying off, the company's second quarter/mid-year business and financial report indicates.

Revenue and ridership is holding despite route and service changes that reduce Amtrak's annual train miles by more than 20 percent in FY 1995.

Amtrak's mid-year business and financial performance report reveals that as of March 31, 1995, its bottom line is $17 million ahead of the aggressive plan adopted by Amtrak's Board of Directors last December to return the corporation to financial health.

The plan called for route and service adjustments, productivity improvements, fare adjustments, overhead reduction and more aggressive marketing in order to eliminate a projected $240 million shortfall this fiscal year. According to the second quarter report, at mid-year Amtrak: -0-

     o  is $17 million ahead of the plan for improving its bottom
        line by $173 million in FY 1995
     o  is at or ahead of budget in the three strategic business units
        (Northeast Corridor, Intercity Rail Services, and Amtrak
        West) created last year to move management decisions closer
        to customers
     o  as a result of the business units' success, Amtrak now
        forecasts a $15 million improvement in the overall budget
        for FY 1995
     o  has retained ridership levels comparable to FY 1994
     o  has increased ticket yield (revenue passenger per mile) by
        4 percent
     o  is $1.9 million ahead of plan in passenger revenues
     o  has improved on-time performance by 11 percent over last
        year
     o  has reduced employee and passenger injuries by 25 and
        37 percent respectively
     o  has reduced its workforce by a net 1,172 employees since
        October, and
     o  has invested $141 million on capital improvements -- the key
        to improving product quality and building ridership in the
        future-0-

Productivity improvements are an important part of Amtrak's plan for financial recovery, and some of these improvements already are producing results: -0-

     o  Amtrak is quickly retiring cars and locomotives.
        Year-to-date through March, 167 aging cars and locomotives
        have been retired.
     o  Productivity is up at Amtrak maintenance yards.  The
        number of passenger cars overhauled at Amtrak's Beech
        Grove, Ind., maintenance facility has risen steadily from
        12 cars per month in October to 32 per month in March.-0-

"I have always believed that Amtrak's success would result from customer-focused business practices," said Amtrak President Thomas M. Downs.

"The second-quarter financial results are necessary and encouraging, but I am most excited about our progress in safety, on-time performance and passenger revenue."

The fact that Amtrak ridership has held steady at about 10.5 million passengers this year even after route and frequency adjustments is significant, Downs said.

"The second quarter results show we've doing what we set out to do -- maintain maximum ridership and revenues while reducing costs."

While the results of the first half of FY 1995 are encouraging, Downs added that Amtrak still faces substantial challenges. Eighty percent of the 1995 financial goal has yet to be achieved and will occur primarily as a result of the final route and service adjustment which will take effect in June and September.

Amtrak expects continued improvement in the quality of its product as new railcars are put into service this summer. "We've been working on this railroad," Downs said, "and we will continue our aggressive business actions in order to remain competitive and provide the best travel experience for our customers.

CONTACT: Amtrak, Washington

Mary Anne Reynolds, 202/906-3860

Debbie Hare, 312/655-2390

Dawn Soper, 213/891-3475