Genesee & Wyoming Q3 results

Genesee & Wyoming Q3 results


Genesee & Wyoming Inc. (G&W) has seen its operating revenues increased 15.2% to $576.9m from $501m.

In a statement the company revealed highlights of its Q3 performance including; operating revenues from G&W’s North American operations increasing 2.8% to $318.9m from $310.2m, primarily due to new operations despite this reported operating income decreased 5.8% to $82.1m and adjusted operating income decreased 5.9% to $83m.

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For the Australia region, operating revenues from the company’s 51.1% share increased 50.1% to $81.3m from $54.2m, primarily due to new operations as well as an increase in metallic ores revenues and agricultural products revenues.  Reported operating income increased to $22.3m from $4.4m and adjusted operating income increased to $21.8m from $7.4m.

For the U.K. and Europe, operating revenues increased 29.3% to $176.7m from $136.7m, primarily due to new operations. Reported operating income increased to $7.1m from $0.3m and adjusted operating income increased to $11m from $0.7m.

G&W’s Chairman, President and CEO, Jack Hellmann said: “In the third quarter of 2017, we reported financial results that were modestly weaker than expected, with reported diluted EPS of $0.80 and adjusted diluted EPS of $0.81. In North America, our same railroad shipments declined 1.9% in the third quarter, primarily due to lower agricultural products carloads caused by drought in the Midwest. Overall we were pleased with the performance of our North American operating team in the third quarter as we successfully navigated through two hurricanes and related precautionary shutdowns of several short lines. In addition, we completed the formation of our CG Railway 50-50 joint venture through which we now provide rail ferry service from Mobile, Alabama to Coatzacoalcos, Mexico.

“In the U.K./Europe, the turn-around in our financial performance was right on target and business conditions have continued to improve. In Australia, although shipments of coal were disrupted by strikes at certain customer mines in the Hunter Valley in the third quarter, the structure of our contract mitigated much of the financial impact and we also commenced spot movements of coal for new customers.

“Our outlook for G&W remains positive. In North America, although we continue to face weather-driven variability in our grain and coal shipments, broader economic activity is solid and we expect to benefit from a tightening trucking market. In Australia, we are pursuing multiple new projects amidst an improved commodity price environment. In the U.K., multiple revenue and efficiency measures have taken effect and we see a good peak season for intermodal shipments in the months ahead. Finally, we continue to generate strong free cash flow and to evaluate a range of acquisition and investment opportunities across our global footprint of railroads.”

For more information visit www.gwrr.com

13th Nov 2017

 

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