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Rail News: Rail Industry Trends

Genesee & Wyoming more than doubles earnings, sets operating ratio record


Yesterday, Genesee & Wyoming Inc. (GWI) reported second-quarter net income of $20.6 million, nearly tripling second-quarter 2009 net income of $7.4 million. Diluted earnings per share more than doubled to 49 cents.

Quarterly results included a non-cash write-down of $6.7 million in non-current assets for the Huron Central Railway Inc. — which ceased operations last year — and related charges of $2.3 million, which partially were offset by a $3.6 million tax benefit.

Total revenue jumped 21.8 percent to $158.5 million and freight revenue climbed 26.4 percent to $100.2 million compared with second-quarter 2009 figures. Excluding foreign currency appreciation, freight revenue rose 23.7 percent, according to GWI, which owns and operates 62 regionals and short lines in the United States, Canada, Australia and the Netherlands.

In addition, the company's traffic increased 15.3 percent to 217,029 carloads, operating income skyrocketed 160 percent to $37.9 million and operating ratio improved 12.6 points to a record 76.1.

“While macro-economic trends in North America and Europe continue to be uncertain, GWI’s shipments have improved and remained stable since March,” said President and Chief Executive Officer John Hellmann in a prepared statement. “Meanwhile, our Australian business continues to perform well and we anticipate doubling the size of that franchise with the acquisition of FreightLink in the fourth quarter of this year.”

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More News from 8/4/2010