Third-quarter report card: Trinity Industries' rail-car business gains offset by construction-product group's losses

For the first time in nine quarters, Trinity Industries Inc. subsidiary Trinity Rail Group reported an operating profit — $2.9 million in the third quarter compared with a $6.1 million loss during the same 2002 period. However, weakening construction-product business caused Trinity Industries' third-quarter operating profit to drop $3.6 million, revenue to decrease $24.2 million and net income to decline $4.4 million compared with third-quarter 2002.

"The gains we made in our rail-related businesses were partially offset by the decrease in profit by our construction-related businesses," said Trinity Industries Chairman, President and Chief Executive Officer Timothy Wallace in a prepared statement.

Trinity Industries' third-quarter North American rail-car shipments increased 45 percent to 2,200 units, North American rail-car market share doubled to 46 percent and car backlog increased 9 percent compared with the second quarter.

"The capital we have committed to our rail-car leasing business is beginning to be reflected in an increase in the year-over-year operating profit for our leasing business," said Wallace. "During the third quarter, we renewed our short-term leasing financing facility for another year while at the same time it was increased by $100 million to $300 million."

During 2003's first nine months, Trinity Industries' revenue declined $119.6 million, operating profit dropped $3.6 million and net loss increased $1.1 million compared with the same 2002 period.