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Rail News: Financials

Greenbrier produces fewer rail cars but earns more greenbacks during FY2006's first quarter


Although The Greenbrier Cos.’ rail-car production and manufacturing backlog dropped during fiscal-year 2006’s first quarter, the three-month period ending Nov. 30 has been branded a success by company officials. The firm’s net earnings increased 49 percent to $8 million, and earnings before interest, income taxes, depreciation and amortization rose 35 percent to $23.4 million compared with FY2005’s first quarter.

“Operating momentum realized in the second half of fiscal-year 2005 has carried into 2006, with both our manufacturing and leasing and services segments continuing to operate with higher margins,” said Greenbrier President and Chief Executive Officer William Furman in a prepared statement. “Decisions to allocate more of our new rail-car production to our Mexican operations and to emphasize global supply sourcing have driven cost efficiencies exceeding initial expectations.”

However, quarterly revenue of $186 million decreased by 14.7 percent and car production of 3,200 units dropped by 2,000 units compared with the same FY2005 period. On Nov. 30, Greenbrier’s manufacturing backlog stood at 7,100 units valued at $450 million compared with a 9,600-unit backlog valued at $550 million as of Aug. 31.

“The decrease in deliveries … was primarily due to increased production for the company's lease fleet and rail cars produced for customers in the current period that will be delivered, sold and margins recognized in future quarters,” said Senior Vice President and Treasurer Mark Rittenbaum.

Contact Progressive Railroading editorial staff.

More News from 1/4/2006