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Hurricanes to wreak havoc on GWI's third-, fourth-quarter earnings

Genesee & Wyoming Inc.'s (GWI) railroads in Louisiana and Mexico recently were impacted by hurricanes. Now, the short-line holding company expects to suffer some financial effects from the storms in the third and fourth quarters, as well.

GWI estimates that Hurricane Isidore, which struck Ferrocarriles Chiapas-Mayab S.A. de C.V. Sept. 23, will decrease diluted earnings per share about three cents in the third quarter and one cent in the fourth quarter because of lost revenue and Yucatan Peninsula track repairs.

However, GWI officials believe Hurricane Lili, which struck Louisiana & Delta Railroad Oct. 3, won't necessarily impact the company's financial results despite damage to the state's sugar cane crop.

GWI predicts third-quarter diluted earnings per share between $0.39 and $0.41 compared with an analyst estimate of $0.43.

On Oct. 11, Ferrocarriles Chiapas-Mayab S.A. de C.V. expects to resume service in Mexico, where segments of track between Coatzacoalcos and Merida temporarily were under water.

GWI estimates the railroad lost about $2 million in revenue and spent $500,000 on track repairs.

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More News from 10/11/2002