May 13, 2009 / 10:18 PM / in 8 years

UPDATE 1-Global Railway posts Q1 loss; says breaches 2 covenants

* Posts loss of C$0.10 vs profit of C$0.04 last year

* Revenue down 5.4 pct

* Says in breach of banking covenants

May 13 (Reuters) - Railway equipment manufacturer Global Railway Industries Ltd GBI.TO posted a quarterly loss, hurt by lower locomotive and railcar maintenance business, and said it was not in compliance with two of its banking covenants as of March 31.

Global Railway said its lenders have not agreed to waive the covenant defaults at March 31, and have not altered the terms and conditions of the credit facility.

The company, however, said it is in discussions with the lenders to amend the credit facility, which will not likely be completed until the end of the second quarter of 2009.

For the first quarter, the company reported net loss of C$1.55 million ($1.34 million), or 10 Canadian cents a share, compared with net income of about C$641,598, or 4 Canadian cents a share, in the prior-year period.

Revenue declined to C$14.68 million from C$15.52 million last year.

Analysts on average expected the company to report earnings, excluding certain items, of 2 Canadian cents a share on revenue of C$16.8 million, according to Reuters Estimates.

Global Railway shares, which have gained 62 percent in one month, closed Wednesday at C$1.23 on the Toronto Stock Exchange.

$1=1.156 Canadian Dollar Reporting by Krishna Chaithanya in Bangalore

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