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Rail News Home Financials

5/2/2007



Rail News: Financials

Genesee & Wyoming's revenue climbs, but so does its operating ratio



Despite sluggish paper and forest products traffic in Oregon and the South, and lingering effects from last year’s hurricane in Mexico, Genesee & Wyoming Inc. (GWI) increased revenue and income in the first quarter.

Revenue rose 15.8 percent to $130.8 million — primarily because of acquisitions — and net income increased 2.2 percent to $14.3 million compared with first-quarter 2006. On a same-railroad basis, revenue decreased by $2.3 million, including $1.7 million from Mexican operations. U.S. carloads declined 7.3 percent, but average revenue per carload rose 5.3 percent.

However, quarterly operating income remained flat at $22.1 million and GWI’s operating ratio worsened 2.6 points to 83.1 compared with first-quarter 2006. The ratio was impacted by a $1.4 million operating loss from Mexican operations, a tunnel fire in Oregon that cost $700,000 to rectify and a higher operating ratio associated with the Genesee & Wyoming Australia Pty. Ltd. acquisition.

“Our financial results for the first quarter were slightly weaker than our outlook … [but] in the U.S. and in Canada, our business is performing well in the current economy,” said GWI Chairman and Chief Executive Officer Mortimer Fuller in a prepared statement.

GWI also announced President John Hellmann will succeed Fuller as CEO on June 1. Fuller will continue to serve as executive chairman.


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