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Rail News: Financials

Genesee & Wyoming sets operating income record, boosts earnings

In the third quarter, Genesee & Wyoming Inc. (GWI) earned operating income of $34.6 million, a 16.5 percent increase compared with third-quarter 2007’s total and the short-line holding company’s best-ever operating income.

Net income rose 31 percent to $21.2 million, diluted earnings per share jumped 38 percent to 58 cents and revenue increased 21.5 percent to $159.4 million. Quarterly results from continuing operations included a $1.2 million gain from asset sales and a net tax benefit of $500,000.

Revenue from same railroad operations rose 11.7 percent and same railroad freight revenue increased 7.6 percent year over year primarily because average revenue per carload went up 15.3 percent. Same railroad non-freight revenue rose 18.9 percent.

“As we enter a period of economic uncertainty worldwide, GWI is doing so from a position of relative strength," said Chief Executive Officer Jack Hellmann in a prepared statement. "In light of the poor conditions in global credit markets, it is important to note that we have access to debt capital under our existing credit facilities.”

However, GWI's operating ratio rose 0.9 points to 78.3 and operating expenses increased 23 percent to $124.9 million compared with third-quarter 2007 totals.

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