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Rail News: Financials

Genesee & Wyoming rang up more revenue, income in 3Q


Today, Genesee & Wyoming Inc. (GWI) announced third-quarter operating revenue increased 7.8 percent to $432.5 million compared with third-quarter 2013 results.

In addition, adjusted income from operations jumped 16.7 percent to $122.6 million, reported income from operations ballooned 21 percent to $123.1 million, adjusted diluted earnings climbed 16.3 percent to $1.21 per share, volume increased 7.7 percent to 519,900 carloads and the adjusted operating ratio improved 2.1 points to 71.7. Analysts surveyed by Zacks Investment Research had expected revenue of $424.5 million and earnings of $1.17 per share.

"In North America, our business was strong in the third quarter, with 7 percent growth in same-railroad freight revenue, led by frac sand, salt, steel and agricultural products," said GWI President and Chief Executive Officer Jack Hellmann in a press release. "Meanwhile, the newly established Rapid City, Pierre & Eastern Railroad performed well, as we benefited from the record harvest in South Dakota and improved the railroad’s fluidity with connecting carriers."

The company's business in Australia — which accounts for 20 percent of total revenue — was slightly weaker in the third quarter, he said. Revenue in Australian dollars dropped 2 percent as intermodal and agricultural shipments weakened and track access income declined due to a previously announced closure of an iron-ore mine.

Looking ahead, GWI remains optimistic about the strength of its North American business, which represents 80 percent of total revenue, and cautious about weakness in the Australian business due to lower iron-ore shipments, said Hellmann.

"Meanwhile, we continue to actively evaluate several acquisition and investment opportunities in North America and internationally," he said.

GWI owns and operates 112 regionals and short lines in the United States, Australia, Canada, the Netherlands and Belgium, including the 1,400-mile Tarcoola-to-Darwin line in Australia.

Contact Progressive Railroading editorial staff.

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