Progressive Railroading

Newsletter Sign Up
Stay updated on news, articles and information for the rail industry



This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.


View Current Digital Issue »


RAIL EMPLOYMENT & NOTICES



Rail News Home Financials

5/3/2006



Rail News: Financials

Genesee & Wyoming boosts North American revenue and income despite struggling Mexican operations


advertisement


Yesterday, Genesee & Wyoming Inc. (GWI) reported it earned first-quarter net income of $14 million, a 28.6 percent increase compared with first-quarter 2005. Net income from North American operations rose 47.8 percent to $12.6 million.

GWI’s quarterly North American revenue of $113 million increased 34.4 percent, operating income of $22.1 million rose 54.7 percent and operating ratio of 80.5 improved 2.5 points compared with first-quarter 2005. However, Mexican operations — which continue to recover from damage caused by Hurricane Stan in September — reported an operating loss of $300,000.

“Our U.S. and Canada operations performed well ahead of our expectations,” said GWI Chairman and Chief Executive Officer Mortimer Fuller III in a prepared statement. “In contrast, our Mexico operations continue to struggle as we reconfigure traffic flows and maintain our dialogue with the Mexican authorities regarding rebuilding the washed-out segment of the line.”

In Australia, GWI’s half-owned Australian Railroad Group (ARG) generated quarterly revenue of $83.7 million, a 0.8 percent decrease compared with first-quarter 2005 primarily because of a weak Australian dollar. Operating income fell 25 percent to $10.5 million and ARG’s operating ratio went up 3.8 points to 87.4. During the quarter, Cyclone Clare washed out track in western Australia and a third-party operator had two derailments on ARG’s track.

By the end of the second quarter, GWI expects to close on a $956 million deal with Queensland Rail and Babcock & Brown Ltd., which will purchase ARG’s western Australia operations and certain assets. GWI also plans to complete a deal with ARG partner Wesfarmers’ Ltd. under which GWI will buy ARG’s remaining southern Australia and Northern Territory operations for $15 million.


Contact Progressive Railroading editorial staff.

More News from 5/3/2006