American Railcar Industries 8-K American Railcar Industries, Inc. Reports Second Quarter 2010 Results

Exhibit 99.1

AMERICAN RAILCAR INDUSTRIES, INC 100 Clark Street, St. Charles, Missouri 63301 www.americanrailcar.com

NEWS RELEASE

FOR RELEASE: JULY 28, 2010	CONTACT:	Dale C. Davies
		Michael Obertop
		636.940.6000

AMERICAN RAILCAR INDUSTRIES, INC. REPORTS SECOND QUARTER 2010 RESULTS

St. Charles, MO, July 28, 2010 – American Railcar Industries, Inc. (ARI or the Company) (NASDAQ: ARII) today reported its second quarter 2010 financial results.

“The railcar industry has begun to see a modest improvement in demand during 2010. Railcar orders have improved, railcar loadings have increased and railcars are being returned to service from storage. We received orders for approximately 1,080 railcars during the second quarter of 2010. To fulfill the new railcar orders we will begin modestly ramping up production rates. Our railcar services segment continues to be strong, with revenues growing 25% year-over-year, to $34.6 million for the six months ended June 30, 2010. This growth resulted from higher volumes driven by repair plant expansions and repair work performed at our railcar manufacturing plants,” said James Cowan, President and CEO of ARI.

For the three months ended June 30, 2010, revenues were $61.2 million and net losses were $5.9 million or $0.28 per share. In comparison, for the three months ended June 30, 2009, revenues were $109.9 million and net earnings were $1.1 million or $0.05 per share. Revenues were lower in the second quarter of 2010 when compared to the same period of 2009 primarily due to lower railcar shipments and a change in product mix. The decrease was partially offset by increased railcar repair volumes primarily due to the Company’s completed railcar repair facility expansions and the utilization of its railcar manufacturing facilities for railcar repair projects. During the three months ended June 30, 2010, the Company shipped approximately 370 railcars as compared to approximately 980 railcars in the same period of 2009. Our backlog increased to approximately 1,210 railcars as of June 30, 2010.

EBITDA, adjusted to exclude investment activity and stock based compensation expense (Adjusted EBITDA), was $0.8 million in the second quarter of 2010 compared to $11.4 million in the second quarter of 2009. This decrease was primarily due to a decrease in railcar shipments and lower gross profit margin. The Company’s gross profit margin decline is primarily attributable to decreased railcar shipments, competitive pricing pressures and the impact of fixed costs in a low production environment. A reconciliation of the Company’s net loss to EBITDA and Adjusted EBITDA (both non-GAAP financial measures) is set forth in the supplemental disclosure attached to this press release.

The Company’s net loss for the second quarter of 2010 was affected by lower operating earnings, as discussed above and an increase in net interest expense.

For the six months ended June 30, 2010, revenues were $113.5 million and net losses were $12.9 million or $0.61 per share. In comparison, for the six months ended June 30, 2009, revenues were $266.9 million and net earnings were $3.9 million or $0.18 per share. Revenues were lower in the six months ended June 30, 2010 when compared to the same period of 2009 primarily due to a decrease in railcar shipments, an overall decrease in average selling prices due to pricing pressures and a change in product mix. These decreases were partially offset by increased railcar repair volumes. During the six months ended June 30, 2010, the Company shipped approximately 710 railcars as compared to approximately 2,470 railcars in the same period of 2009.

Adjusted EBITDA was $0.5 million for the six months ended June 30, 2010 compared to $25.5 million in the six months ended June 30, 2009. This decrease resulted primarily from decreased railcar shipment volume, a decrease in gross profit margin and an increase in joint venture losses, all partially offset by a decrease in selling, administrative and other costs. The Company’s gross profit margin decline is primarily attributable to decreased railcar shipments, decreased overall average selling prices due to competitive pricing pressures and the impact of fixed costs in a low production environment. The increase in joint venture losses was primarily driven by losses at the Company’s axle joint venture and due to low operating rates. The decrease in selling, administrative and other costs was primarily attributable to cost control measures and a non-recurring legal settlement recorded in the first quarter of 2009.

The Company’s net loss for the six months ended June 30, 2010 was affected by lower operating earnings, as discussed above, an increase in net interest expense and increased losses from joint ventures, all partially offset by a decrease in our selling, administrative and other costs.

ARI will host a webcast and conference call on Thursday, July 29, 2010 at 10:00 am (Eastern Time) to discuss the Company’s second quarter 2010 financial results. To participate in the webcast, please log on to ARI’s investor relations page through the ARI website atwww.americanrailcar.com. To participate in the conference call, please dial 800-447-0521 and use participant code 27529501. Participants are asked to logon to the ARI website or dial in to the conference call approximately 10 to 15 minutes prior to the start time.

An audio replay of the call will also be available on the Company’s website promptly following the earnings call.

About American Railcar Industries, Inc.

American Railcar Industries, Inc. is a leading North American designer and manufacturer of hopper and tank railcars. ARI also 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.

Forward Looking Statement Disclaimer

This press release contains statements relating to our expected financial performance and/or future business prospects, events and plans that are forward-looking statements. Forward-looking statements represent the Company’s estimates and assumptions only as of the date of this press release. Such statements include, without limitation, statements regarding potential improvements in the railcar industry, the potential for increased order activity, anticipated future production rates, the Company’s backlog and any implication that the Company’s backlog may be indicative of future sales. These forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from the results described in or anticipated by our forward-looking statements. Other potential risks and uncertainties include, among other things: the impact of the current economic downturn, adverse market conditions and restricted credit markets, and the impact of the continuation of these conditions; our reliance upon a small number of customers that represent a large percentage of our revenues and backlog; the health of and prospects for the overall railcar industry; our prospects in light of the cyclical nature of the railcar manufacturing business and the current economic environment; anticipated trends relating to our shipments, revenues, financial condition or results of operations; our ability to manage overhead and production slowdowns; the highly competitive nature of the railcar manufacturing industry; fluctuating costs of raw materials, including steel and railcar components and delays in the delivery of such raw materials and components; fluctuations in the supply of components and raw materials ARI uses in railcar manufacturing; anticipated production schedules for our products and the anticipated financing needs, construction and production schedules of our joint ventures; risks associated with potential joint ventures or potential acquisitions; the international economic and political risks related to our joint ventures’ current and potential international operations; the risk of lack of acceptance of our new railcar offerings by our customers; the sufficiency of our liquidity and capital resources; the conversion of our railcar backlog into revenues; compliance with covenants contained in our unsecured senior notes; the impact and anticipated benefits of any acquisitions we may complete; the impact and costs and expenses of any litigation we may be subject to now or in the future; the ongoing benefits and risks related to our relationship with Mr. Carl C. Icahn (the chairman of our board of directors and, through his holdings of Icahn Enterprises LP, our principal beneficial stockholder) and certain of his affiliates; and the additional risk factors described in our filings with the Securities and Exchange Commission. We expressly disclaim 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.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share amounts)

	As of
	June 30, 2010		December 31, 2009
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	320,307	$	347,290
Short-term investments - available-for-sale securities		—		3,802
Accounts receivable, net		14,114		11,409
Accounts receivable, due from affiliates		14,588		1,356
Income taxes receivable		107		1,768
Inventories, net		41,650		40,063
Deferred tax assets		2,878		2,018
Prepaid expenses and other current assets		4,458		4,898
Total current assets		398,102		412,604
Property, plant and equipment, net		189,989		199,349
Deferred debt issuance costs		2,260		2,568
Interest receivable, due from affiliates		2,203		982
Goodwill		7,169		7,169
Investments in and loans to joint ventures		47,739		41,155
Other assets		1,146		537
Total assets	$	648,608	$	664,364
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	21,332	$	16,874
Accounts payable, due to affiliates		347		576
Accrued expenses and taxes		6,382		4,515
Accrued compensation		8,283		8,799
Accrued interest expense		6,875		6,875
Total current liabilities		43,219		37,639
Senior unsecured notes		275,000		275,000
Deferred tax liability		273		7,120
Pension and post-retirement liabilities		6,278		6,279
Other liabilities		2,352		2,686
Total liabilities		327,122		328,724
Commitments and contingencies
Stockholders’ equity:
Common stock, $.01 par value, 50,000,000 shares authorized, 21,302,296 shares issued and outstanding at June 30, 2010 and December 31, 2009		213		213
Additional paid-in capital		238,687		239,617
Retained earnings		81,310		94,215
Accumulated other comprehensive income		1,276		1,595
Total stockholders’ equity		321,486		335,640
Total liabilities and stockholders’ equity	$	648,608	$	664,364

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts, unaudited)

	For the Three Months  Ended June 30,
	2010			2009
Revenues:
Manufacturing operations (including revenues from affiliates of $33,552 and $37,354 for the three months ended June 30, 2010 and 2009, respectively)	$	43,223		$	94,608
Railcar services (including revenues from affiliates of $3,179 and $4,452 for the three months ended June 30, 2010 and 2009, respectively)		17,942			15,318
Total revenues		61,165			109,926
Cost of revenue:
Manufacturing operations		(44,890	)		(85,106	)
Railcar services		(13,705	)		(12,011	)
Total cost of revenue		(58,595	)		(97,117	)
Gross profit		2,570			12,809
Selling, administrative and other (including costs related to affiliates of $154 for both the three months ended June 30, 2010 and 2009)		(5,606	)		(5,661	)
(Loss) earnings from operations		(3,036	)		7,148
Interest income (including income related to affiliates of $614 and $5 for the three months ended June 30, 2010 and 2009, respectively)		769			1,802
Interest expense		(5,319	)		(5,136	)
Other income (including income related to affiliates of $4 and $0 for the three months ended June 30, 2010 and 2009, respectively)		292			13
Loss from joint ventures		(2,271	)		(1,971	)
(Loss) earnings before income taxes		(9,565	)		1,856
Income tax benefit (expense)		3,683			(724	)
Net (loss) earnings	$	(5,882	)	$	1,132
Net (loss) earnings per common share - basic and diluted	$	(0.28	)	$	0.05
Weighted average common shares outstanding - basic and diluted		21,302			21,302
Dividends declared per common share	$	—		$	0.03

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts, unaudited)

	For the Six Months Ended June 30,
	2010			2009
Revenues:
Manufacturing operations (including revenues from affiliates of $46,127 and $85,759 for the six months ended June 30, 2010 and 2009, respectively)	$	78,858		$	239,278
Railcar services (including revenues from affiliates of $6,020 and $7,985 for the six months ended June 30, 2010 and 2009, respectively)		34,618			27,595
Total revenues		113,476			266,873
Cost of revenue:
Manufacturing operations		(82,277	)		(215,204	)
Railcar services		(27,673	)		(22,483	)
Total cost of revenue		(109,950	)		(237,687	)
Gross profit		3,526			29,186
Selling, administrative and other (including costs related to affiliates of $308 for both the six months ended June 30, 2010 and 2009)		(11,693	)		(12,674	)
(Loss) earnings from operations		(8,167	)		16,512
Interest income (including income related to affiliates of $1,221 and $10 for the six months ended June 30, 2010 and 2009, respectively)		1,499			2,985
Interest expense		(10,640	)		(10,276	)
Other income (loss) (including income related to affiliates of $8 and $0 for the six months ended June 30, 2010 and 2009, respectively)		377			(83	)
Loss from joint ventures		(4,053	)		(2,813	)
(Loss) earnings before income taxes		(20,984	)		6,325
Income tax benefit (expense)		8,079			(2,467	)
Net (loss) earnings	$	(12,905	)	$	3,858
Net (loss) earnings per common share - basic and diluted	$	(0.61	)	$	0.18
Weighted average common shares outstanding - basic and diluted		21,302			21,302
Dividends declared per common share	$	—		$	0.06

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands, unaudited)

	For the Six Months  Ended June 30,
	2010			2009
Operating activities:
Net (loss) earnings	$	(12,905	)	$	3,858
Adjustments to reconcile net earnings to net cash (used in) provided by operating activities:
Depreciation		11,901			11,613
Amortization of deferred costs		349			341
Loss on disposal of property, plant and equipment		28			115
Stock based compensation		821			201
Change in interest receivable, due from affiliates		(1,221	)		—
Change in investments in joint ventures as a result of loss		4,053			2,813
Realized gain on short-term investments - available-for-sale securities		(379	)		—
Unrealized loss on derivatives		—			88
(Benefit) provision for deferred income taxes		(8,243	)		1,571
Recovery for doubtful accounts receivable		6			11
Investing activities reclassified from operating activities:
Interest income on short-term investments - available-for-sale securities		—			(2,229	)
Realized loss on derivatives		—			10
Dividends received from short-term investments - available-for-sale securities		—			(15	)
Changes in operating assets and liabilities:
Accounts receivable, net		(2,711	)		16,318
Accounts receivable, due from affiliate		(13,232	)		(4,777	)
Income taxes receivable		1,661			—
Inventories, net		(1,598	)		34,247
Prepaid expenses and other current assets		440			902
Accounts payable		4,458			(18,291	)
Accounts payable, due to affiliate		(229	)		(4,550	)
Accrued expenses and taxes		729			(3,893	)
Other		(782	)		122
Net cash (used in) provided by operating activities		(16,854	)		38,455
Investing activities:
Purchases of property, plant and equipment		(3,727	)		(10,004	)
Proceeds from sale of property, plant and equipment		104			—
Sale (purchase) of short-term investments - available-for-sale securities		4,180			(36,841	)
Interest income on short-term investments - available-for-sale securities		—			2,229
Realized loss on derivatives		—			(10	)
Dividends received from short-term investments - available-for-sale securities		—			15
Investments in and loans to joint ventures		(10,680	)		(1,845	)
Net cash used in investing activities		(10,123	)		(46,456	)
Financing activities:
Common stock dividends		—			(1,278	)
Net cash used in financing activities		—			(1,278	)
Effect of exchange rate changes on cash and cash equivalents		(6	)		108
Decrease in cash and cash equivalents		(26,983	)		(9,171	)
Cash and cash equivalents at beginning of period		347,290			291,788
Cash and cash equivalents at end of period	$	320,307		$	282,617

RECONCILIATION OF NET EARNINGS TO EBITDA AND ADJUSTED EBITDA

(In thousands, unaudited)

	Three months ended June 30,						Six months ended June 30,
	2010			2009			2010			2009
Net (loss) earnings	$	(5,882	)	$	1,132		$	(12,905	)	$	3,858
Income tax (benefit) expense		(3,683	)		724			(8,079	)		2,467
Interest expense		5,319			5,136			10,640			10,276
Interest income		(769	)		(1,802	)		(1,499	)		(2,985	)
Depreciation		5,986			5,969			11,901			11,613
EBITDA	$	971		$	11,159		$	58		$	25,229
Expense related to stock appreciation rights compensation1		121			236			821			201
Other (income) loss on short-term investment activity		(298	)		(13	)		(379	)		83
Adjusted EBITDA	$	794		$	11,382		$	500		$	25,513

¹ SARs are cash settled at time of exercise

EBITDA represents net (loss) earnings before income tax (benefit) expense, interest expense (income), net of depreciation of property, plant and equipment. The Company believes EBITDA is useful to investors in evaluating ARI’s operating performance compared to that of other companies in the same industry. In addition, ARI’s management uses EBITDA to evaluate operating performance. The calculation of EBITDA eliminates the effects of financing, income taxes and the accounting effects of capital spending. These items may vary for different companies for reasons unrelated to the overall operating performance of a company’s business. EBITDA is not a financial measure presented in accordance with U.S. generally accepted accounting principles (U.S. GAAP). Accordingly, when analyzing the Company’s operating performance, investors should not consider EBITDA in isolation or as a substitute for net (loss) earnings, cash flows from operating activities or other statements of operations or statements of cash flow data prepared in accordance with U.S. GAAP. Our calculation of EBITDA is not necessarily comparable to that of other similarly titled measures reported by other companies.

Adjusted EBITDA represents EBITDA before share based compensation expense related to stock appreciation rights (SARs), and before gains or losses on investments and derivative instruments. We believe that Adjusted EBITDA is useful to investors evaluating our operating performance, and management also uses Adjusted EBITDA for that purpose. Our SARs (which settle in cash) are revalued each quarter based upon changes in our stock price. Management believes that eliminating the expense associated with our stock based compensation, investments and derivates allows us and our investors to understand better our operating results independent of financial changes caused by the fluctuating price and value of our common stock, investments and derivative instruments. Adjusted EBITDA is not a financial measure presented in accordance with U.S. GAAP. Accordingly, when analyzing our operating performance, investors should not consider Adjusted EBITDA in isolation or as a substitute for net (loss) earnings, cash flows from operating activities or other statements of operations or statements of cash flow data prepared in accordance with U.S. GAAP. Our calculation of Adjusted EBITDA is not necessarily comparable to that of other similarly titled measures reported by other companies.