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Hellmann: G&W posts "modestly stronger" Q2 results

Genesee & Wyoming Inc. reported second-quarter operating revenue rose 7.8 percent to $540.4 million, while operating income increased 16.2 percent to $101.3 million compared with the same quarter in 2016.

G&W's adjusted operating income in the quarter rose 13.3 percent to $107.4 million compared with $94.7 million in Q2 2016, according to a G&W press release.

G&W's reported net income for the quarter was $46 million, compared with reported net income of $48.4 million in the same period a year ago. Excluding the net impact of certain items that affect comparability between the quarters, G&W's adjusted net income in the second quarter of 2017 was $49.9 million compared with $47.0 million in the second quarter of 2016.

The company posted a Q2 diluted earnings per share of 74 cents, compared with reported diluted EPS in Q2 2016 of 83 cents. Adjusted diluted EPS for the quarter was 80 cents per share versus 81 cents a year ago.

G&W Chairman, President and Chief Executive Officer Jack Hellmann noted that during the second quarter the company closed on the acquisitions of Heart of Georgia Railroad in the United States and Pentalver in the United Kingdom. Also in the quarter, G&W completed the restructuring of ERS Railways B.V. in Europe and reported financial results that were modestly stronger than expected.

"In North America, same railroad revenues remained flat overall while we maintained an operating ratio of approximately 75 percent," said Hellmann. "In Australia, our 51 percent-owned business performed well in the second full quarter since the acquisition of Glencore Rail, with higher same railroad shipments of iron ore and manganese and an operating ratio of approximately 74 percent."

In the United Kingdom and Europe, G&W's turnaround in its financial performance became increasingly visible, a trend that the company expects to continue into 2017 and beyond, he said.

"Meanwhile, our year-to-date free cash flow was strong and we continue to evaluate a range of acquisition and investment opportunities across our global footprint of railroads," Hellmann added.

Contact Progressive Railroading editorial staff.

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