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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.

Contact Progressive Railroading editorial staff.

More News from 5/2/2007