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Rail News: Financials

Genesee & Wyoming boosts third-quarter revenue in North America, Australia

Today, Genesee & Wyoming Inc. (GWI) reported third-quarter net income of $17 million, a 68 percent increase compared with third-quarter 2004.

North American revenue rose 36.3 percent to $105.3 million and operating income jumped up 82.4 percent to $24.1 million. In addition, GWI’s North American operating ratio improved 5.8 points to 77.1 compared with the same 2004 period.

"While we were fortunate that hurricanes Katrina, Rita and Wilma did not cause significant damage to our properties, Hurricane Stan’s damage to our Mexican operations will likely impact our Mexican operating results for the next two quarters,” said GWI Chief Executive Officer Mortimer Fuller III in a prepared statement. “We are discussing reconstruction of the affected portion of the line with the Mexican authorities."

In Australia, GWI's half-owned Australian Railroad Group (ARG) subsidiary increased revenue 4.3 percent to $87.3 million compared with third-quarter 2004. However, operating income totaling $14.1 million fell 15 percent and the subsidiary’s operating ratio worsened 3.9 points to 83.9.

“Grain traffic has picked up in anticipation of a bigger harvest in the fourth quarter,” said Fuller. “ARG continues to reduce the number of contract drivers and to receive relief from high fuel prices through contractual revenue escalators.”

During 2005’s first nine months, GWI earned net income of $39.3 million, a 29.1 percent increase compared with the same 2004 period.

Contact Progressive Railroading editorial staff.

More News from 11/1/2005