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Rail News: Financials

Greenbrier to close 'unprofitable' Canadian rail-car plant

Losses are mounting at its Nova Scotia, Canada, plant. So, The Greenbrier Cos. plans to close the facility — which incurred a pre-tax second fiscal quarter loss of $3.8 million — in the third fiscal quarter after the plant completes a 300-car order.

During its fiscal second quarter, which ended Feb. 28, Greenbrier registered a net loss of $6.1 million compared with net earnings of $8.6 million in FY2006’s second quarter. Total revenue increased slightly to $240 million.

Greenbrier’s new car manufacturing backlog of 14,300 units valued at $990 million as of Feb. 28 remained unchanged from the previous fiscal quarter.

Manufacturing has been affected by slowing demand for double-stack and forest products cars and higher-than-anticipated labor hours on certain marine and rail-car orders, Greenbrier officials said in a prepared statement.

“We believe the current pause in double-stack orders is a temporary adjustment to the car supply side, given the large builds in recent years and recent improvements in rail velocity,” said Greenbrier President and Chief Executive Officer William Furman.

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More News from 4/5/2007